Save Now and in the Future
Lock in Your Rate; Protect Yourself from Increases
Few issues impact budgets as negatively as unanticipated electric rate increases. When rates rise 6% one year and 11% the next, it wreaks havoc with cash flow. By locking in your rate through a long term power purchase agreement (PPA), you can forecast costs with greater accuracy now and for years to come.
A solar system installed today can produce electricity at a cost of 9 cents per kWh or less over the system’s 30+ year life expectancy. Commercial rates in 2013 averaged 10.1 cents to more than 11.1 cents in Arizona and California. In some areas rates are considerably higher. Given the growing demand for power and high cost of new generation facilities, there’s no way to guess how high rates will be in the next 5, 10 or 20 years. Unless, that is, you’ve got a contract price through PPA Partners.
Rebates and Incentives
Currently, many states and utilities offer aggressive subsidies for solar systems. A federal tax credit worth 30% of the system’s cost plus accelerated depreciation further reduce your out of pocket costs.
With a solar system, you can actually look forward to opening your electric bill. Thanks to net metering, your meter will spin forward when you consume electricity from the grid and backwards when you produce solar power, which generates credits.
In the summer, your system will normally produce more electricity than you use. The excess power credits are banked for future use. In the winter months, when there are fewer hours of sunlight, you can draw on the credits. At the end of the year, you’ll pay the net difference between your production and use. Depending on the size of your system, the net bill due can be nominal or nonexistent!