Blog

Utility Rate to Compare with Solar

February 3, 2021 By In News No Comments

How do you calculate the utility rate to compare for solar?

 

A customer’s ROI calculation can vary significantly based on two key items: the local incentives and the local utility rates. Take the same size roof in Tennessee and New Jersey and you will have an ROI that can vary by 7+ years. Why is that?

 

The simple answer is local incentives. New Jersey offers TRECs and Tennessee only has the federal ITC and deprecation bonus. The states initiatives driven by energy policy to drive more local and renewable energy generation can be anything from an upfront rebate to a quarterly check based on the production. Often, there are local incentives such as tax abatement and REAP grants available based on zip code.

 

Next to incentives, the utility rate to compare for solar can be one of the largest drivers in an ROI calculation. A utility bill has many components the make up the final calculation on an average bill. Within one utility, rates can vary based on: zone, rate class, how much they consume, time of day they consume the most electricity, and more. When understanding the rate to compare specifically for solar, various net metering laws drive that calculation – which furthers the confusion from a customer’s perspective.

 

While there are many variations of billing components there are three key factors to look at: customer fees, per kilowatt (kW), and per kilowatt hour (kWh). Customer fees often indicate the administrative cost to serve a customer. kW fees generally indicate demand charges. And kWh fees are generally generated by actual energy consumed. When we calculate a customer’s cost to compare the general calculation is Total Bill – Customer Fees – (x% of Demand) divided by the kWh consumed that month. The Demand percentage varies by the way the utility calculates this number and the way the customer operates their business.

 

Genie Solar is unique because we were born out of the energy business. We understand our clients bills unlike any other solar installer. In fact, we have a team of experts (the Price Desk) that spends their day looking at ways to reduce on bill charges. Find out how we can help you reduce your energy bills by speaking with our Solar Energy expert Sarah Schwandt today!

Recent Posts

Categories

Archives

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

Case Studies

  • Commercial Solar Case Study Property Management Company
    Wiley Property Management Case Study

    The installation of the solar array on the roof of storage facility is leveraging a limited regulation called “Group Hosting”. Group hosting is a method where a group of businesses or individuals share the installation and use of a larger solar array on a single property.

  • Bake Crafters Commercial Solar Case Study
    Bake Crafters Food Company

    Bake Crafters’ commercial solar array is a remarkable example of sustainability in action. With an output capacity of 800 kW and predictions of offsetting 770 metric tons of CO2 emissions.

  • Integra Commercial Solar Case Study
    Integra Biosciences

    Integra Biosciences’ Commercial Solar project achieves 22% IRR and aligns with the company’s global sustainability goals and commitments. The two installations total 572-kW and generate enough power to offset 844,000 kWh.

  • Commercial Solar Case Study - Kraft Power
    Commercial Solar Case Study – Kraft Power Power

    Kraft Power utilized American made solar panels to install a 57.5 kW system on their roof. The new rooftop solar system, will help Kraft Power offset 100% of the electricity usage every year.

Latest Posts

Testimonials

Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
PCS Wireless
A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
Kraft Power
A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
Tower Water
Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
Cardoza Flooring
A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
House By The Side of the Road