Adding solar panels and switching rate plans can lower your United Illuminating Company electric bill
Updated: October 22, 2020Installing solar panels can help reduce your UI 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 United Illuminating Company customers?
Absolutely, yes! With a hefty $426 per kilowatt solar rebate, available low income solar program, and sales and property tax exemptions, solar panels make a lot of sense for United Illuminating Company customers in Connecticut. UIC net metering also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Does United Illuminating Company offer net metering credits for exported solar power?
Yes, United Illuminating Company offers net metering credits.
Under the United Illuminating Company 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.
If you have excess energy credits after offsetting your usage over the course of a year, UI will pay you out for those credits at a special rate per kWh calculated based on its wholesale energy cost over the year. After that, the amount of excess energy in your account will be reset to zero.
What incentives, tax credits, and rebates are available to UI 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 UI customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,939 |
|
Residential Renewable Energy Solutions Program
(State)
Solar energy buyback program designed to achieve a 10% rate of return for system owners. Customers choose between a "buy all" program under which all their solar energy will be purchased by the utility company for a set rate, or a monthly netting program, under which their excess solar energy would be counted by the utility as on-bill credits, plus a potential payment for RECs to ensure the intended rate of return. |
Varies |
|
Sales and Use Tax Exemption for Solar and Geothermal Systems
(State)
Solar energy equipment is exempt from 100% of state sales tax. |
Varies |
|
Property tax Exemption for Renewable Energy Systems
(State)
100% of the assessed value of a solar system is exempt from property taxes. |
Varies |
|
Smart-E Loans
(State)
No money-down, low interest financing to upgrade home energy performance |
Varies |
| TOTAL | -$6,939 |
*Based on 8.39 kW system, average installation cost $23,131
How much does installing solar panels save the average United Illuminating Company residential customer?
If you input the details for a UI customer with a power bill of $220 per month into the best online solar panels calculator, it tells you that you need a 8.39 kW solar system that will produce 10,468 kWh per year and that this system will return the owner a $86,470 profit after repaying the cost of the system.
The solar savings possible for you as an UI 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 UI customer with a $220 per month electric bill prior to solar and who installs a 8.39 kW solar system.
How much do residential solar panels cost for UI customers?
Showing data for:
Prices based on a 7.5kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$67,999-$83,110
Payback period
4.4-5.3 years
Recommended size for the selected utility bill
7.5kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 8.39 kW |
|
Annual Power Generation 10,468 kWh |
|
Pay-back time (assuming Cash purchase) 4.4 Years |
|
Internal Rate of Return (IRR) on Investment 20.2% |
|
Gross cost $23,131 |
|
Total Upfront Incentives and Rebates -$10,545 |
|
Net Cost of System after rebates and incentives $12,587 |
|
Total Cost of Utility Power Avoided over 25 years $99,057 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of United Illuminating Company 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 an United Illuminating Company customer installing a 8.39 kW solar system on their property:
A solar system generating 10,468 kWh per year will save you money AND make the world a nicer place
Saves you
$3,459
on average per year
Reduces CO2 emissions
5.18
tons per year
Equivalent to planting
36 trees
per year
Equivalent to driving
11,463 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 United Illuminating Company 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 $2.76 per watt or $12,587 for a standard 8.39 kW solar system after the customer claims the 30% federal solar tax credit.