Electric Utility Companies: Rates are on the Rise! - Option One Solar

Electric Utility Companies: Rates are on the Rise!

One consistent fact in California, electric utility rates will continue to rise. So far:

  • SCE already went up 14.4% in 2020, with another 11.7% planned for 2021
  • Regulators approved PG&E 8% in 2020, with more to come in 2021-2022
  • LADWP residences experienced up to a 3% yearly increase since 2015, with another increase set for 2021

Whether small or large, any increase is too much, especially in our current economy. However, hope is available for those ready to get out of price gouging and fluctuations. Solar energy offers you electric independence and financial stability as the cost of electricity continues to rise.

Solar Investment Offsets Increasing Electricity Rates

Investing in a solar system removes the influence utilities have on your budget by removing your need for their energy or producing enough to offset their costs. The average system runs homeowners about $25,000. Paying for that out of pocket will result in immediate independence and savings, not to mention the 26% solar investment tax credit, SITC, you can claim on your next tax filings. There may be a nominal connection fee, $10-20. However, financing is an excellent option for those not able to pay everything upfront.

Financing a solar system will remove your dependence on utility companies and shine some light at the end of the tunnel. After paying off your system, you are indebted to no one and no longer tied to the utility company’s rising rates, achieving energy independence. Financing offers you a fixed payment compared to fluctuating rates from utilities, and the 26% solar investment tax credit can be applied to your loan to reduce or maintain a low monthly payment.

Understanding NEM & Time-Of-Use

Solar energy is the best alternative to utility control. However, utilities are wise to this technology and still try to trap users. Your installer will help you avoid utility traps by sizing your system accurately based on your electrical usage, down to every hour of the day for the last year. We will also inform you of the best Time-Of-Use Rate Plan to keep you ahead of the utility companies' continued fight for your wallet. It is also the best time to get on the solar train with the NEM 3 approaching.

Net energy metering, or NEM, is an agreement with your utility company that they will track your energy consumption and solar production, store your extra energy in the grid, and credit you for electricity pushed to the grid but not used. They install a net meter that allows for a bidirectional flow of power from your panel back to the grid. So, if you overproduce, your energy will be stored at the grid, and available for usage when your panels aren’t producing. Depending on the agreement with the utility company, there is a yearly or monthly “true-up”, at which time you will receive credits for your overproduction or a bill for under-producing and using electricity from the grid at the time-of-use rates. You can read about the current state of NEM here. (Hint: it’s not getting better).

Our company goes the extra mile to calculate users’ energy demand hourly, not just yearly, to nullify any time of use or other utility traps. What you get is a system that out-produces and out-earns what other companies offer.

Avoid PPA and Leasing Pitfalls

You want to own your system, not someone else. Involving yourself with a company that offers PPA or Leasing agreements just changes who you pay. Instead of utilities getting your money, now your solar company does. This company reaps the profits and federal incentives you could get and only offers you a slightly lower bill you continue to pay for years. Additionally, when your agreement is over, or if not renewed, then the equipment is uninstalled, and you are back at the mercy of current utility rates. You want to be free and independent, not back to square one.

Freedom Comes with Option One

That is what Option One Solar offers to its customers. You get energy independence, your cost of solar is low, you own your system and all its rewards, and backed by a company with excellent warranties and customer support. No more uncertainty with your energy!

Get A Free Solar Quote

One of our Solar Experts can answer all your questions and build you a system that is accurately sized to your needs. We use industry leading equipment and technology to ensure you are making a wise investment.
Get A Quote

Recent Articles

Must-Reads

Reviews

Carlos Arias
Carlos Arias
5 out of 5 stars
a week ago
Option One Solar was our choice for solar after looking into various other companies. We are 110% satisfied! The entire...
Read more
Bryant Diep
Bryant Diep
5 out of 5 stars
in the last week
From the beginning Frank was very helpful with our solar journey. Made sure we reviewed all options and provided all...
Read more
Ryn Corbeil
Ryn Corbeil
5 out of 5 stars
2 weeks ago
KC was very helpful describing the pros and cons of a roof versus ground-mount system. He answered most of my...
Read more
"The bitterness of poor quality remains long after the sweetness of low price is forgotten."
- Benjamin Franklin
CSLB License #985340
Tesla Powerwall Certified Installer
© OptionOneSolar 2020. We love our customers!
Privacy PolicyTerms & Conditions
crossmenu