Don’t Get Left in the Dark when Going Solar

Over 14,000 homeowners in the Southern California Edison utility territory have gone solar this year, but with the utility’s recently-altered rates, the vast majority are likely unaware of the financial implications. A typical homeowner may lose thousands of dollars in savings over the lifetime of their solar power system if it is not designed to factor in the solar rules and rates with Southern California Edison (Edison).

In the past, a solar company looked at how much energy a household used on an annual basis. Their solar power system was then designed to produce that same amount of energy per year, regardless of what time the energy was produced or consumed.
Since last July, solar customers in the Edison utility territory have been subjected to new solar rules, placing all solar customers onto time-of-use rates, meaning the utility charges more per unit of energy depending on when the energy is consumed. With these new regulations in place, a more in-depth analysis is needed to design an efficient solar power system.
Edison currently charges a typical family on time-of-use rates 48 cents per unit of energy consumed during their “on peak” period, 2-8 p.m., the time of day when electricity is most expensive. However, Edison has proposed to move the on peak period to 4-9 p.m. beginning in March 2019, with the possibility for even higher rates. Because panels don’t generate energy at night, a battery allows homeowners to store their solar power during the day and use it in the evenings when electricity is most expensive.
A typical family who goes solar with a battery saves roughly $80,000 over a 20-year period. If their neighbor goes solar without a battery at the same time, the neighbors will pay hundreds of dollars per year in additional unavoidable costs. Over 20 years, using a six percent escalation, the family without a battery will have incurred an additional $8,400 in unexpected costs.
Homeowners in Edison’s territory can learn from what has already taken place in the SDG&E service territory, where evening time-of-use rates are an astounding 54 cents per unit of energy known as a kWh, with an on-peak window from 4- 9 p.m. in place. In fact, the entire state will soon be moving to nighttime on-peak hours. This is exactly the outcome that investor-owned utilities have been lobbying for. Electric bills will continue to increase as rate reform continues, and solar power customers without a battery can be unprotected against impending utility attacks. In short, they will be left in the dark.
“Many local solar companies are saying batteries are unnecessary or are only for back-up power, and that's patently false - batteries allow solar customers to maximize their return on investment,” said Daniel Sullivan, founder and president of Sullivan Solar Power, “The majority of families going solar in the Inland Empire have no idea about the huge financial impact these new rates are going to have because their solar company doesn’t fully comprehend it, therefore these companies do not teach people the importance of incorporating a battery.”
For those who go solar now, they can apply for the state rebate, the Self-Generation Incentive Program, which can cover a portion of the cost of a battery. In addition, the remaining cost can be offset by a 30 percent federal tax credit.
For more information about solar paired with energy storage, the public is invited to attend the Murrieta Solar Experience, taking place on Saturday, September 8, 2018 at 8 Bit Brewing Company. To learn more visit solarseminar.info.