Will my utility bill be zero after I install solar?
Living in Denver, you're well aware of our sunshine advantage. But can that sunshine translate to a zero utility bill with solar panels? The answer, like the Colorado weather, is nuanced. While achieving a completely zero bill might not be the guaranteed outcome, switching to solar power can dramatically reduce your energy costs and pave the way for significant savings. Many Metro Denver area residents will still have a connection charge although the system will produce more electricity than the homeowner is using.
Let's unravel the mysteries of solar bills and explore what factors influence those monthly statements.
Xcel Energy’s Solar Rewards Solar Bank Election: Your Virtual Solar Bank
When you install solar panels on your home, you generate your own electricity. This can save you money on your electric bill and help the environment. But what happens to the extra electricity you generate when you're not using it? That's where the Solar Bank comes in.
The Solar Bank is like a savings account for your extra electricity. You can choose how you want to use it:
Continuous Rollover Credits: This is like getting a credit on your bill for every extra kilowatt-hour of electricity you generate. You can use these credits to pay for your electricity usage anytime.
Waive Decision: If you don't choose an option right away, you can wait until the end of the year to get a check for your extra electricity. Xcel Energy will buy your extra electricity at a rate based on the average cost of electricity over the past year.
Continuous Rollover Credits or Waive Decision: Which option is right for you?
If you use a lot of electricity during the day, you may want to choose Continuous Rollover Credits so you can use your extra electricity to offset your usage. If you don't use a lot of electricity during the day, or if you want to get a lump sum payment at the end of the year, you may want to waive your decision.
Here are some things to keep in mind:
Once you choose Continuous Rollover Credits, you can't switch to Waive Decision.
You can't cash out your Solar Bank balance.
Your Solar Bank credits can't be transferred to another Xcel Energy account or to a new homeowner if you move.
Additional tips for making your decision:
Consider your electricity usage patterns. If you use a lot of electricity during the day, Continuous Rollover Credits may be a good option. If you don't use a lot of electricity during the day, or if you want to get a lump sum payment at the end of the year, you may want to waive your decision.
Talk to your solar installer. They can help you understand your options and choose the best one for you.
Read the Solar Bank Election Form carefully. This form will explain your options in more detail. 2023 Solar Bank Election Form
Time of Use (TOU)
Xcel Energy, a prominent energy provider in the United States, has implemented a time-of-use (TOU) electricity rate structure, where electricity prices vary depending on the time of day. This shift towards TOU pricing reflects the growing demand for electricity during peak hours. This rate structure requires customers to manage their use of electricity during peak hours.
For Xcel Energy customers, understanding TOU rates and adopting solar energy can significantly impact their electricity bills. TOU rates encourage customers to shift their electricity usage away from peak hours, reducing strain on the grid and potentially lowering their overall energy costs.
Connection Charge
Some Denver utilities might have a connection charge associated with getting your solar system hooked up to the grid.
Beyond the Zero: The Brighter Picture
While aiming for a complete zero bill is admirable, remember that solar offers additional benefits beyond that number on your statement. You're contributing to environmental sustainability, increasing your home's value, and gaining energy independence. Even modest bill reductions over the years add up to substantial savings and a future powered by the sun.
Ready to Shine Brighter?
At Go Green Electric, we're Denver's trusted solar solar and smart home energy installer, helping residents harness the power of the sun. We'll assess your energy needs, design a customized solar system, and walk you through every step of the process. Contact us today for a free consultation and discover how solar can brighten your energy future, even if it doesn't completely erase that bill!
Remember: Solar may not guarantee a zero bill, but it offers a path to significant cost reductions, environmental benefits, and energy independence. Let's turn Denver's sunshine into sustainable power, one roof at a time!