Before purchasing solar panels, it is important to consider CWLP’s low electric rates, the cost of the panels over time, and how financing will factor into your overall costs. While solar prices have come down some over the years with addition of incentives such as tax credits, depending on the project, it’s often not the least expensive energy source if just cost is your deciding factor. When considering adding solar panels to a home or property, it’s important to do a thorough assessment to help make informed decisions based on your goals and energy needs.

WILL YOU SAVE MONEY?
Bill savings or “zero your utility bill” is a common touted benefit from solar vendors. Whether buying or leasing a system, the payback in energy savings would need to equate to the cost of the system outright or over time—considering the life of the system and with all financing costs. CWLP currently offers full retail net metering and interconnection to its electric system for its residential and commercial customers installing solar. Factoring in the size of your solar installation and estimated production against the energy projected your property uses could indicate if your system could benefit from net metering by lowering your CWLP bill due to less energy used from the utility in addition to any excess energy generated by the customer-owned solar installation.

To calculate your CWLP residential energy cost, it would be reasonable to use 12 cents per kWh and an escalation factor of no more than 2% per year or see just the electric portion of the bill showing total electric charges. In 2023 and in the previous few years, CWLP residential electric rates have been well below the state average. As an example, the average CWLP customer (using 858 kWh/month) has had electric charges averaging $102 per month in a recent period reviewed from April to 2023 to March of 2023 as compared to a State average for $143 per month.

CWLP recommends customers compare their electric charges to all the costs for solar including for equipment, installation, maintenance, financing and any other costs associated with the solar project. Include the net metering benefits projected along with other incentives, rebates, or tax credits—and ensure you meet the qualifications —and include those amounts to determine how it offsets the cost of a solar project.

To help homeowners and small business operators make more well-informed decisions, see CWLP’s checklists to consider on whether to go solar and what you should review when choosing a project and installer.

BEFORE YOU GO SOLAR

• Does your property pass the energy efficiency test? Is it well insulated, are your appliances and lighting energy efficient, do you manage your thermostat, is your heating and air conditioning system efficient? These are lower cost investments you should consider to begin to yield energy savings.
• Research the type of system that best fits your property’s energy needs. If rooftop is best option, determine if your rooftop is a fit for solar panels based on exposure to direct sunlight and if the condition and structure of your roof is adequate. Ensure you have easy and safe access to the roof in order to allow for effective inspection, maintenance, and repair for the PV system.
• Check with your homeowner’s insurance company about the addition of solar panels
• Determine your property’s current average energy use and energy cost
• Request proposals from 2 to 3 reputable solar contractors.
• Determine whether purchasing the solar panels is in your best interest or that if financing, the terms are fair.

CHOOSING A SOLAR COMPANY

• Verify the solar company carries insurance.
• Ensure the company will use a licensed electrician that is registered with the City of Springfield for installation.
• Ask for references and search company through the Better Business Bureau (BBB).
• Because a correctly sized, sited, installed, and maintained PV system is essential for maximizing its energy performance and minimizing the chance of injury, the installation of residential solar panels should always be done by a professional contractor.
• Determine if the energy savings promised match up or if they are less accurate or sound too good to be true.

QUESTIONS TO ASK

• Should I buy or lease the system and what is the difference?
• What purchase and financing options are available? What does the bid include and what are all the costs for permitting, equipment, installation labor and maintenance?
• What are the terms of financing and what is the interest rate and duration (in years) of the financing agreement?
• Will my monthly loan payments be equal or less than the savings on my electric bill?
• What happens if I move?
• What will the total cost be from start to finish including design and installation?
• What is the warrantied life of the solar panels and the inverter?
• If there are incentives, who completes the paperwork for the potential tax credits, rebates and other incentives? What are the tax credit requirements?
• Are the people installing the system employees or subcontractors?
• How much energy will the system provide?
• Does the company’s product offer a safe power off for disconnection on the exterior of the property?
• How will the installer consult with CWLP? Does the installer have experience coordinating/integrating solar systems with the electric grid?