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The numbers above show the savings with a solar PPA for an average home in Pennsylvania. The typical electric bill before solar power is super expensive, but with a PPA, your monthly expenses will be lower. You'll be saving money and saving the planet all at the same time! Here's an estimate of the monthly savings for a solar PPA in Pennsylvania: With a PPA, your solar company essentially becomes a second utility provider, only the solar electricity is sold to you at a lower rate than the fossil fuel electricity you've been buying from the electric company! But it will save you money! The less-popular cousin of the third-party solar family is the solar lease. It's basically like renting your panels for a set monthly payment, and getting all the energy they produce—however much it is. Don't get spooked by that language, though. A typical solar lease comes with energy production guarantees that will make sure you're getting what you paid for. In fact, if you're not offered a production guarantee with a solar lease, walk away. Here's the best part of third-party solar: Usually that means just a good cleaning every year, but if any part of that system fails, you're off the hook! That can be a great benefit to homeowners who are risk averse. Keep in mind, the numbers above are based on an average home in Pennsylvania. If you're ready for a custom quote for a solar lease or PPA, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page. Willsolar Shakespanels would be proud we're discussing this. Here's the basic deal. If you choose to lease your panels, you benefit from no out of pocket costs and an immediately reduced total electricity payment. Because of this, many regard this option as a no-brainer, since there isn't any downside to think of. The only hiccup you'll start to experience is when you consider the long term financial benefit of owning the solar panel system yourself. In many situations, if you can afford the outlay or can easily secure financing, the cost of the install becomes an investment with a return outpacing even the strongest performing mutual funds. In addition, there's significantly less principal risk, since the energy credits you will be producing are tied to the sun coming up in the morning instead of our financial markets! Additionally, if you go the PPA route, you must forfeit all the credits and performance payments you would receive by owning the system yourself to the solar PPA company after all, that's how they can afford to give you such a no-brainer proposition in the first place. As long as you have equity in your home, you can still own solar panels and reap all the benefits. Heck, even if you do have the cash, getting a loan to pay for solar is by far the best option when it comes to percentage return on investment. You'll come out thousands ahead this year, and you'll still see a handsome profit over the year life of your system. A solar purchase like this will make sense for you if the following is true about you and your current situation: Don't be put off if you're offered a higher rate. It just means a tiny bit less of the thousands of dollars you'll make with solar. You love making money without much risk. That's how big your loan will need to be to cover it. You'll also see a huge tax break! You'll be paying over time but getting the benefits up front! But wait, there's more! You'll get one each time your system produces a megawatt-hour MWh of electricity, and our example 5-kW will earn you about 5. On top of the green that will stay in your pocket, your system will mean green for the environment, too— trees-worth, every year! If you're ready for a custom quote for a solar loan, our network of experts are on call to assist you. Buying Solar in Pennsylvania An outright purchase used to be the only way to get solar, and it's still the option that provides the "biggest" financial returns. The reason we put "biggest" in quotes here is because it's technically true, but based on percent return for the money, a loan is a better option. It's like being able to start a business that is sure to succeed, just by having a roof. Read about loans below. As the electric company raises rates, you save more and more, and more That's cheaper than solar has ever been, but it still might seem like a big investment. The internal rate of return for this investment is a solid That beats an investment in a market-based index fund, and it's more reliable, too! And here's a nice bonus to consider: It's like planting trees a year, every year your solar power system is humming. If you're ready for a custom quote for a solar panel system, our network of experts are on call to assist you. Find out Pennsylvania Solar Policy Information Ever wonder why solar seems to be everywhere in some states, but not in others? State legislatures and public utilities commissions can enact rules to make solar power accessible for everyone. Favorable rules explain why some of the cloudiest states—New York, New Jersey, and Connecticut, are doing so well with solar, and yet some of those with the most natural solar resources—like Alabama, Mississippi, and Florida—are doing so poorly. Below is important information about the public policy, rules, and economic reasons that affect your ability to go solar here in Pennsylvania: C A Renewables Portfolio Standard RPS requires utilities in the state to eventually source at least a certain percentage of their electricity from clean, renewable sources like solar panels. To be classified as Tier 1 the electricity generally must also have been produced within Pennsylvania. All that is a very strong foundation for an RPS. Given the friendly conditions in the rest of the state, a strengthened RPS would solidify Pennsylvania as a leader in solar policy. Utility companies aren't really all that gung-ho about you producing your own power. After all, it costs them money when you use less of their electricity. The main reason the utilities are aiding your transition to lower electric bills and offering you incentives to put solar on your roof is because the state forces them to. If the utilities don't hit their RPS numbers, they have to pay large fees back to the state. Your state legislature paves the way for strong solar energy incentives to flourish by setting standards for renewable energy generation within their territories. If utility companies do not meet these standards, they must pay alternative compliance fees directly to the state. Many utilities then determine the best ways to source their energy from renewable sources that are less expensive than this fee. An RPS is a mandate that says "Hey utilities! Y'all now have to make a certain percentage of your electricity from renewable sources. If not, you'll have to pay us huge fines. Read more about Renewable Portfolio Standards. RPS solar carve out. C Specific carve-outs for clean and efficient technologies like solar panels, or mandates for the environmentally necessary increases in distributed generation, typically promote stronger incentives for residential solar power. What's a solar set aside? A solar set aside guarantees a specific portion of the overall renewable energy mix generated comes from the sun. For those states with progressive standards, high alternative compliance payments, and clear solar carve outs, the faster those areas become ripe for solar. Some states have higher alternative compliance fees than others, and some states have more progressive alternative energy standards and deadlines than others do. That requires local utilities to source However, New Jersey also has a specific solar set aside of 4. No wonder why New Jersey is one of the hottest solar markets right now! Who likes paying more than average? We get that sentiment. We know you like paying less now, but the long term costs of cheap electricity are through the roof. All that cheap electricity is produced by burning fossil fuels -- tons and tons of earth-killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. In the meantime, solar power will still save you a chunk of change here. Why are electricity prices so important? Because that is what solar power is directly competing against. Because of that, states without any renewable standards tend to be heavily reliant on cheap coal for electricity, and also have very low electricity prices. When electricity prices are artificially low, that hinders the ability of solar energy to achieve meaningful payback in the state. Pennsylvania Net Metering A Grade: A Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus. Since , Pennsylvania law has required all investor-owned utilities to offer net metering to all residential customers with solar power systems up to 50kW in capacity. If you produce more energy than you consume the surplus is carried over to your next bill at the full retail rate. While a check at the full retail rate would be even better, the majority of states do not require the utility to cut you that year-end check at all, so kudos to Pennsylvania on this one, regardless of the slightly reduced rate. At a time when other states are restricting or eliminating net metering this is great news! What is net metering? Net metering is the billing arrangement where you can sell excess electricity back to your utility for equal the amount you are charged to consume it. The more customer friendly net metering policies, the higher the grade. The more complex, out of date, or nonsensical the state rules are for plugging into the grid, the lower the grade. Specifically, the grade reflects what technologies are eligible, individual system capacity, removing interconnection process complexity for smaller systems, interconnection timelines and charges, engineering charges, prohibiting the requirement of unnecessary external disconnects, certification, spot interconnection vs.
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