Why Utah Residents Should Go Solar Before Nov. 15, 2017
Would you turn down an investment that guarantees 10% return on your surplus energy over the course of 18 years?
If you’re considering solar and the answer is no, you better have a rooftop solar solution locked in by Nov. 14th this year.
If you don’t, however, it isn’t the end of the world—solar will still provide return on investment in Utah if you qualify for the Transitional Rate program after November 15th. A taxable income, solid credit score, and a clear pitch for your roof to receive solar will suffice.
Here’s another question.
Would you turn down an investment that guarantees 10% return on your surplus energy over the course of 18 years and has a 10% discount rate on the implementation process?
If you have a head on your shoulders at all, the answer is a resounding “no.” The good news is the Go Solar Group is making Utahans’ ability to capitalize on that exact investment easier than ever with a 10% markdown on solar installation, provided solar prospects submit their net metering agreements and schedule appointments with us prior to Nov. 14 and November 10, respectively.
Opting in to solar as soon as possible will provide solar prospects with security and assurance in a Utah market that will soon become very different, albeit still fruitful for customers.
In addition to circumventing the upcoming net metering changes and capitalizing on the 10% markdown the Go Solar Group will give to customers, here are some additional reasons why solar investments will be worth it for Utahans in 2018 and beyond.
The Time Value of Solar Panel Investments
The time value of money is the concept that the money you have at your disposal today is worth more than the equivalent amount of money in the future, merely because of its potential investment and earning capacity.
$10 in your pocket at age 10 is worth more than $10 in your pocket at age 65, even considering the knowledge one acquires over 55 years of living.
This may not be the case if a supreme level of intelligence permitted us to debunk the stock market. Unfortunately for us, however, a monkey has just as good of a chance at picking a winning stock as a seasoned Wall Street broker.
This means that the savings you gain from going solar are worth more in your pocket before 2018 than they will be after 2018. The latter of these two scenarios doesn’t negate the value of solar—it just puts in proper perspective.
Submitting a net metering agreement by November 14 will make you eligible for the existing rates over the next 18 years, which, over time, can compound into thousands of dollars in savings.
All it takes is a little bit of hustle over the next few weeks.
Although post-net metering changes will only cut the grid crediting efficiency of solar in Utah to 90% of what it is now, it’s still worthwhile to opt-in as soon as possible.
If Utahans wait past the November 15th deadline, the time value of the monetary investment they make on solar will, however, be subtracted at a much more significant rate given the impending changes to net metering credits.
The 15-Minute Net Metering Changes and Energy Tiers Affect You if You Wait to Go Solar
During 15-minute periods where you export more energy than you consume, your household will receive a slightly below market rate credit to your energy bills on a per kilowatt hour basis.
When measured with this degree of frequency, it slightly reduces the return on investment, whereas the trend has been that these credits would be tabulated in 24-hour intervals.
Additionally, there are three tiers at which consumers will be billed on their solar energy and energy consumption in general in the state of Utah, and this works in conjunction with the recent net metering changes, too.
The below tiers explain how Rocky Mountain Power/ Pacificorp bill you according to your energy consumption.
Tier 3 means you use a lot of energy, whereas Tier 1 means you use very little. Using a rooftop solar solution, in the vast majority of cases, prevents you from entering the Tier 3 payment bracket.
- Tier 3 is 14 cents per kwh, which usually equals over 1,000 kwh (highest tier of energy consumption)
- Tier 2 is 11.5 cents per kwh, which usually equals 400 – 1,000 kwh (second highest tier of energy consumption)
- Tier 1 = 100 to 400 kwh (lowest tier of energy consumption)
Rocky Mountain Power refers to these tiers as Block 1, Block 2, and Block 3.
The reason this applies to residential solar arrays in Utah is the fact that these energy tiers are always subject to change, and not in the consumers’ favor as traditional methods of manfuacturing energy, such as coal, are becoming increasingly scarce and therefore, pricier.
During peak hours, energy consumption tends to be cheaper.
More on Net Metering for Solar Panels Prospects
Measuring every 15 minutes (netting every 15 minutes) means consumers will export more energy onto the grid. But everything they can produce on-site they can use. California has a similar net metering model at 1-hour netting.
You still get a 1:1 credit on the energy you use, but the 15-minute interval net metering dynamic in Utah means the power company is taking the energy and electricity you’re not using that very second and pushing it back to the grid, essentially exporting more energy to the grid, and at a reduced rate.
Every 15 minutes, you’re transmuting kilowatt hours to currency; Every 15 minutes your excess gets turned into dollars and the dollar is applied to the bill.
Essentially, more frequent netting equals more exporting of energy back to the grid, and this slightly compounds the reduction in long-term savings one can get after the net metering changes take effect on November 15.
The bulk of what’s produced will be used on-site. The excess parts are converted to dollars every 15 minutes and applied to your bill. And that will be credited at .092 cents per kwh. Your energy is reduced more frequently/un-potentiated.
If you buy power back, you buy it back at retail rate (using more than producing).
The best way to think of this is that once the net metering changes take effect in Utah, you’ll own everything behind the meter, but there’s also a 120% offset limit.
You will still see a reduction in your energy bills that will compound immensely and make the time value of monetary investment work for you.
This is especially true given that solar helps its users intrinsically scale back on energy that a home doesn’t really need.
To capitalize on the final days to lock in existing rates on net metering and get a 10% markdown on install, learn more about net metering and fill out an application.