Adding solar panels and switching rate plans can lower your Tacoma Public Utilities electric bill
Updated: October 21, 2020Installing solar panels can help reduce your TPU 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 Tacoma Public Utilities customers?
Probably not. Washingtonians enjoy extremely low electricity prices because of the state's vast hydroelectric generation resources. This is very good for your pocketbook as a utility customer, but it means that solar panels pay you back much less here than they do for people in other states. Add to that the fact the TPU's service territory is awfully cloudy during much of the year, and you get an equation that doesn't add up.
Does Tacoma Public Utilities offer net metering credits for exported solar power?
Yes, Tacoma Public Utilities offers net metering credits.
Under the Tacoma Public Utilities net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to TPU 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 TPU customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$7,121 |
|
Renewable Energy Sales and Use Tax Exemption
(State)
Sales and use tax not applied to machinery/equipment used to generate at least 1 kW but no more than 100 kW of electricity with solar energy. |
Varies |
|
Net Metering
(State)
All utilities must offer net metering, credited at retail rate and carried over month-to-month. Excess credits surrendered to utility on April 30 of each calendar year. |
Varies |
| TOTAL | -$7,121 |
*Based on 10.18 kW system, average installation cost $23,735
How much does installing solar panels save the average Tacoma Public Utilities residential customer?
If you input the details for a TPU customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.
The solar savings possible for you as a TPU 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 TPU customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.
How much do residential solar panels cost for TPU customers?
Solar prices near you
Net profit (savings less system cost)
$37,813-$46,216
Payback period
7-8.5 years
Recommended size for the selected utility bill
8.6kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 10.18 kW |
|
Annual Power Generation 14,226 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.4% |
|
Gross cost $23,735 |
|
Total Upfront Incentives and Rebates -$11,668 |
|
Net Cost of System after rebates and incentives $12,069 |
|
Total Cost of Utility Power Avoided over 25 years $64,523 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Tacoma Public Utilities 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 Tacoma Public Utilities customer installing a 10.18 kW solar system on their property:
A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place
Saves you
$2,098
on average per year
Reduces CO2 emissions
7.04
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,578 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 Tacoma Public Utilities 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 $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 30% federal solar tax credit.