The BIG Question: Does Solar Fit my Budget?

Considering a home solar energy system? As the price for solar equipment decreases and members look for ways to reduce their energy costs, the question of whether to install a solar energy system on a home comes up more frequently. Members should consider multiple factors and ask key questions when researching and making the right decisions for their households. 

The total installed cost of residential photovoltaic ranges from about $35,000 to $50,000 for a 10-kilowatt grid tie-in system. In addition, there may be other costs to consider beyond just the panels: liability and homeowners’ insurance as well as property taxes. It’s also important to calculate years required to pay for the system. In some cases, it can take 17–25 years or more to recoup your costs, even with a tax credit.

What is "Avoided Cost?"

• As an electric cooperative, our rate policy strives to maintain fundamental cost fairness among all of our member-owners as a form of consumer protection.

• The cooperative will pay a member generator for the kWhs delivered to the grid at a rate that is developed based on an avoided cost basis, pursuant to federal regulations.

• The “avoided cost” is the price the cooperative would have paid to produce the same power itself or purchase it from another source.

• Asking the cooperative to pay a higher price for energy produced by a single member than the price we would pay to purchase it elsewhere is not fair to other members and is simply a bad business practice.

• In essence, any member connected to the grid with access to virtually unlimited electricity on demand must pay a portion of the costs associated with poles, wires, substations, transformers, and operations necessary to deliver reliable electricity to their property in order to reach cost fairness among all members.

• The avoided cost rate pays members for intermittent electric generation when it’s available while the cooperative’s retail rate covers costs associated with generation, transmission, and distribution of electricity available to members on demand.

• Basic fairness to utility customers is the rationale for the federal standard being what it is and for the cooperative’s avoided cost rate.

• Remember electric cooperatives are not-for-profit, so this is a matter of consumer protection for all members and not about making a profit.

Additional Resources for Solar:

40 Questions to ask an Installer : The American Solar Energy Society is an industry resource offering a checklist for consumers when choosing and working with installers and contractors.

The National Renewable Energy Laboratory (PV Calculator) : Estimates the energy production and cost of energy of grid-connected photovoltaic (PV) energy systems throughout the world. It allows homeowners, small building owners, installers and manufacturers to easily develop estimates of the performance of potential PV installations.

FAQs for Solar : PDF answering some of or top frequently asked questions for solar installations.