UTILITY COMPANIES – “We are your overlords”
The energy landlords (PG&E) have the name of the new buyback rates passed in 2023, adding to the confusion of going solar. Once marketed as NEM 3, the revised name for this program is called Net Bill Tariff. Moving forward, the way solar homes trade energy with PG&E is called the Net Billing Tariff. Below are some key facts about Net Billing Tariffs:
- Switching to solar from PG&E with no money down costs less (depending on overall roof sun access)
- Fixed predictable monthly expense Vs. over 10% PG&E rate increases already imposed this year
- PG&E rate hikes 150% over the last 10 years
- Close to 50% of the public has already made the move to solar in California. This compares favorably to just over 10% of owned homes 10 years ago
- This movement is like switching from cable to dish was 20-30 years ago
Net Billing Tariff is better than paying the Electric Landlord (Energy Overlords)
The latest solar offerings allow homeowners with a 600-credit score or better to pay a lower fixed cost and includes battery back-up cost every month for more energy. If it’s a lease or a power purchase agreement, there is no money out of pocket to simply change from PG&E to solar and have a fully insured solar array with a production guarantee for the next 25 years. This will even bring down the gas bill when incorporating the latest efficient electric heating.
Batteries are the Future
The big utility companies are in complete control of your energy future costs for as long as you let them be while you do not have solar. As EV’s, Heat pumps and electrically powered devices become more popular, so does the demand on the grid. Combine this with all the fires and you have a perfect recipe for more electricity outages in the future. It is inevitable. Batteries will allow you consistent power and independence from a less stable grid.
What Is Load Shifting or Arbitrage?
When installing a battery and solar, this allows to create the energy during the off-peak hours when energy is cheaper, and a lot of energy is being produced. We bank this energy into our battery or batteries. Later in the evening when energy costs are much greater, like the hours of 6 to 8 PM in August and September, energy can be sold into the grid for as much as $2.50 per kilowatt hour.
What If I Don’t Want a Battery?
Some solar is better than no solar. Without a battery, offsetting 50-70% of your energy is the sweet spot. This will allow the fastest payback period. This is the baby step method. In this case, we are turning energy that costs anywhere from $.25 to over $.50 per kilowatt hour into less than $.10 a kilowatt hour with a cash purchase. A battery and / or more panels can be added at any time later in effort to achieve closest to 100 % offset.
Any Additional Incentives to Get Solar Installed In 2023 With NBT?
- As they transition, PG&E is giving anyone installed this year a 100% real kilowatt value credit until December 2023.
- $.02 per kilowatt hour is the added incentive from the utilities for going solar in 2023
- $.09 per kilowatt hour for Low Income
- Both above grandfathered for 9 years.
- 30% Federal Tax Credit for 2023 income when system becomes operable prior to December
In Nevada, energy is closer to $.10 than $.20 per kilowatt hour. In Texas, it’s very similar to Nevada. In Chicago, it’s a little bit closer to $.20 per kilowatt hour. Here in California, look at your bill and you will see you’re most likely paying somewhere between $.45-$.50 per kilowatt hour, until the next rate increase. If you want to see the easiest way to understand rate increases for yourself, click here. If you want a better solution, google search Solar in California, or reach out to the Solar Bill Review Team for a complementary professional analysis of your historic and future plans.
Schedule a complimentary Solar Consultation with us, today. To accommodate your schedule, Solar Consultations can be scheduled for home visits or by video conferencing. Contact our office by phone, text, or email.