Upfront costs and long-term savings
Installing renewable energy systems requires an initial investment. Solar panels, inverters, and installation can cost several thousand dollars depending on system size and complexity. Over time, generating electricity may reduce energy costs and protect against price fluctuations.
Financing options like the Clean Energy Improvement Program (CEIP) can help pay for upgrades through property taxes over several years and some municipalities offer rebates that can lower upfront costs.
Impact on electricity bills
Micro-generation lets consumers use the electricity produced by their solar systems and earn credits for any surplus energy sent to the grid. These credits appear as line items on the bill at the retailer’s contract rate.
Consumers still pay:
- Fixed delivery charges for maintaining the grid distribution system
- Administration fees from the retailer
These charges remain because consumers are required to have a utility contract and to be connected to the electricity grid.
Rate plans and seasonal production
Utility bills vary based on:
- The retailer rate plan chosen: low yield, high yield, or pre-solar
- Seasonal production: solar output is higher in summer and lower in winter
- Size and placement of solar panels: consumers with smaller solar systems or panels placed in more shaded areas may not generate enough electricity to offset their usage
- Energy use patterns: credits may not fully offset consumption during low-production months.
Understanding these factors can help consumers plan for periods when there is a need to purchase electricity from the grid.
Other costs to consider
Renewable energy systems can reduce energy costs, but they also come with ongoing responsibilities:
- Maintenance for panels and equipment
- Insurance updates to cover renewable installations
- Permits and inspections required by municipalities
Explore grants and programs that may help offset these costs.
