Adding solar panels and switching rate plans can lower your Lakeland Electric electric bill
Updated: October 22, 2020Installing solar panels can help reduce your LE bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Lakeland Electric customers?
Maybe. With the 26% Federal solar tax credit, and available sales and property tax exemptions available in Florida, home solar panels deserve your attention as a worthy investment as a Lakeland Electric customer. Unfortunately, Lakeland tacks on a "solar demand charge" for solar panel owners, which amounts to meaningful impacts to your return on investment over the life of your system.
While Lakeland doesn't make the finances of going solar easy, its solar rate plan also allows you to at least get some credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits, while accruing at a much lower rate than you pay for electricity, roll over to the next month’s bill.
Does Lakeland Electric offer net metering credits for exported solar power?
No, Lakeland Electric does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.
The amount you are paid by the utility is known as a feed-in tariff. In the case of Lakeland Electric, this feed-in rate is $0.02 per kWh.
What incentives, tax credits, and rebates are available to LE customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a LE customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,474 |
|
PACE Loans
(State)
Loans that are paid back through an increase in property taxes. Loans are attached to the property so if the homeowner moves, the next property owner pays back the loan. |
Varies |
|
Property Tax Abatement for Renewable Energy Property
(State)
100% of the value of a solar energy systems is exempt from property taxes. |
Varies |
|
Florida Keys Electric Cooperative - Solar Loan Program
(State)
Competitive interest loans of up to $35,000 for solar and energy storage. On-bill repayment and 10-year term with no penalty for prepayment. |
Varies |
|
Net Metering
(State)
Investor-owned utilities are required to offer their customers the full retail rate for each excess kWh they export to the grid. |
Varies |
|
Orlando Utilities Commission - Residential Energy Efficiency Rebate Program
(State)
$2,000 for installing solar+battery systems. Battery must have capacity of 8 kWh or greater. |
Varies |
|
Jacksonville Electric Authority - Solar Battery Incentive Program
(State)
$4,000 rebate per home/business on the purchase of a qualified battery storage system. |
Varies |
|
Lakeland Electric - Residential Energy Efficiency Loan Program
(State)
0% interest loan up to $5,000, must be resident and homeowner, On-bill repayment |
Varies |
|
Solar and CHP Sales Tax Exemption
(State)
Solar energy systems are exempt from state sales and use tax |
Varies |
|
SELF Loans
(State)
Unsecured personal loans for those in underserved communities for sustainable home improvements. |
Varies |
| TOTAL | -$6,474 |
*Based on 9.07 kW system, average installation cost $21,579
How much does installing solar panels save the average Lakeland Electric residential customer?
If you input the details for a LE customer with a power bill of $170 per month into the best online solar panels calculator, it tells you that you need a 9.07 kW solar system that will produce 12,864 kWh per year and that this system will return the owner a $29,557 profit after repaying the cost of the system.
The solar savings possible for you as a LE customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical LE customer with a $170 per month electric bill prior to solar and who installs a 9.07 kW solar system.
How much do residential solar panels cost for LE customers?
Showing data for:
Prices based on a 11.0kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$26,409-$32,278
Payback period
9.7-11.8 years
Recommended size for the selected utility bill
11.0kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.07 kW |
|
Annual Power Generation 12,864 kWh |
|
Pay-back time (assuming Cash purchase) 10.7 Years |
|
Internal Rate of Return (IRR) on Investment 3.6% |
|
Gross cost $21,579 |
|
Total Upfront Incentives and Rebates -$5,611 |
|
Net Cost of System after rebates and incentives $15,971 |
|
Total Cost of Utility Power Avoided over 25 years $45,528 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Lakeland Electric customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Lakeland Electric customer installing a 9.07 kW solar system on their property:
A solar system generating 12,864 kWh per year will save you money AND make the world a nicer place
Saves you
$1,182
on average per year
Reduces CO2 emissions
6.37
tons per year
Equivalent to planting
45 trees
per year
Equivalent to driving
14,087 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Lakeland Electric customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.38 per watt or $15,971 for a standard 9.07 kW solar system after the customer claims the 30% federal solar tax credit.