As of May 1, it’s been two years since our solar panels have been installed and working. We got an electric bill today for April. We’ve been running the a/c for most of April, though not as much as it will be running in July and August.
Electric Bill
Here in Texas, in deregulated areas, we choose our REP and wherever we happen to live, whichever TDU has that area, we’re stuck with them. Unfortunately for us, ours is the highest in the state. On the above bill, you can see:
- We pay .052/kwh for the power we buy from our REP.
- Our rep pays us .075/kwh for the power we send back.
- Our TDU charges us .097/kwh for the power we use.
So, we paid $26.21 + $9.95 for the power we used, or $36.16, for the power we bought. We were paid $65.40 for the power we produced over and above what we used. We were charged $48.86 for the use of the lines that delivered the 504 kwh that we purchased. It’s those TDU charges that make the electric bills in this area outrageous. Effectively, we’re paying right at .17/kwh here. That’s the reason that during July and August, without solar panels, our electric bill would be over $400/month. Don’t forget we have a small house that’s well insulated and we have a gas dryer, gas water heater and gas stove. Ridiculous!
But the good news is, with the solar panels, we shouldn’t have to pay more than about $50/month. We’re very happy with their production.
Jennifer says
We are looking at purchasing solar ourselves (let me revise, I am trying to convince the hubby). I do not know if I am wording this right. What do you believe your current payback is for your initial investment? Also, the hubby would like to know if you have had any hail, and if that has affected the panels? I know you are busy, but I sure would like some assistance in persuading him.
dezertsuz says
Yes, I’d be happy with that, too! Actually, my KUB bill is way more, even with no A/C on. I think it was about $85 last month, and most of the month, I didn’t use even the heater. But the house IS all electric, and I have no idea how well insulated – it seems to hold the heat or the cold inside for quite a while, except in extreme conditions. I’ll have to check what I actually pay. It’s good to see how this is working for you. Certainly way less than a $400 summer monthly bill!
Debbie says
But how much did it cost to install the solar panels? General estimates are $20,000 – $30,000, so if you divide that over time you expect to live in your house (7 – 10 years on average) the net cost of solar panels is not as great as it seems, in Texas as we have one of the lowest electric costs in the country. The next buyer will think it is nice to have solar panels, but does not think it adds as much value as the cost of them. Don’t get me wrong, going green is great, but the aggregate savings of it is not as much as one would think. Be careful if you are considering it and make sure you understand the contract with the solar company and how the electric company will treat you. Nevada does not allow net metering like Judy is showing above.
JudyL says
There’s a lot to consider in your comment. First, at the current time, there’s a 30% tax rebate for adding solar so that would bring your suggested cost down to $14,000 to $21,000. Depending on the cost of electricity, that payback time varies. For us, it was about a 6 to 7 year payback, and that’s based on the cost of electricity not going up during that period and I think we all doubt the price will stay the same. Plus, in the summer, since we’re mostly using power we produce here, at least during the day, we keep the house cooler (more comfortable) than we previously did. Some parts of Texas does have lower . . ours does not. We pay more here than we’ve paid at any previous location.
Another thought . . most of us pay way more for a vehicle than we would for solar panels and have no hope of getting back our investment. It’s all in what matters most to each individual. I’ll agree that solar panels are not right for everyone but for us, they were right and we’re very happy with our decision.
As far as having solar panels being attractive to the next buyer, we did a lot of research and at least in our area, they’re quite attractive to potential home buyers. One thing most folks are concerned about before purchasing solar panels is “will they really work as expected?” When we have proof that our average winter bill has gone from about $120 to less than $5 per month, and that our average summer bill of over $300 has gone to less than $50 per month, that the panels have survived wind and hail storms, I’m not sure who wouldn’t find value in that. According to realtors we talked to before installing the panels, every home they’ve sold, the owner had recouped his investment.
I’m not sure what contract with the solar company you’re referencing. The only contract we had with our company was to install the panels, get them up and running and we were done with them.
I’m not sure that you’re correct about Nevada’s net metering policy. They make it fairly unattractive but I believe they have gone back and changed some rules and allowed some old plans to be grandfathered in but for new solar customers, Nevada is not making it very attractive. I do realize that the utility companies have to maintain lines and pay employees.
Everyone should do their research. There are some areas where the electric companies will not purchase excess energy. There are some states where there are fees for using the lines to send power back. Every company pays a different rate for what they purchase. Anyone making this type of investment for anything should do their research, and I think that’s something I’ve preached from the beginning.
Not only should anyone thinking about getting solar panels be doing their own research but whatever company you choose to do business with should know the rules in your area .. backwards and forwards. They should know any fees, restrictions . . anything that could adversely affect your enjoyment of your solar panels. These installers deal with the electric companies on a daily basis and if the one you deal with isn’t 100% familiar with the local rules, I’d recommend finding another company. There’s a lot that can go wrong if you’re not using a great company but with a great company .. it should be smooth, painless and a good investment for most of us.