Electric Utility 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 Electric Utility 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 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 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 utility company's agreement, 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 solar cost 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!