Adding solar panels and switching rate plans can lower your Atlantic City Electric (ACE) electric bill
Updated: October 22, 2020There are three ways you can reduce your ACE bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. ACE doesn't offer time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, but there may be other options for you .
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
On this page:
Solar panel cost calculator
How much can I reduce my Atlantic City Electric (ACE) bill by switching to a different rate plan
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Atlantic City Electric (ACE) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Atlantic City Electric (ACE). Even a small savings can be worth it.
Are solar panels worth it for Atlantic City Electric (ACE) customers?
Definitely. With transitional renewable energy credits (TRECs), and solar sales and property tax exemptions in New Jersey, solar panels make a whole bunch of sense here, especially for Atlantic City Electric customers! ACE’s net metering policy 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 Atlantic City Electric (ACE) offer full 1 for 1 net metering credits for exported solar power
Yes, Atlantic City Electric (ACE) offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.
In the case of Atlantic City Electric (ACE), this is approximately $0.16 per kWh.
What incentives, tax credits and rebates are available to ACE customers for installing solar?
The major financial incentive currently available until the end of 2023 is the 30% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a ACE customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$9,367 |
|
Property Tax Exemption for Renewable Energy System
(State)
Excludes assessed costs of a solar system from a homeowner's property taxes |
Varies |
|
Successor Solar Incentive Program (SuSI)
(State)
New residential net-metered projects are eligible for payments of $85 for every MWh generated by their systems. Payments continue for 15 years. Superseded TREC program 8.28.2021 |
Varies |
|
Net Metering
(State)
Utilities regulated by the New Jersey Board of Public Utilities must offer net metering. |
Varies |
|
Solar Energy Sales Tax Exemption
(State)
solar energy equipment fully exempted from state sales tax |
Varies |
| TOTAL | -$9,367 |
*Based on 10.43 kW system, average installation cost $31,223
How much does installing solar panels save the average Atlantic City Electric (ACE) residential customer?
If you input the details for a ACE customer with a power bill of $210 per month into the best online solar panels calculator, it tells you that you need a 10.43 kW solar system that will produce 13,961 kWh per year and that this system will return the owner a $115,843 profit after repaying the cost of the system.
The solar savings possible for you as an ACE 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 ACE customer with a $210 per month electric bill prior to solar and who installs a 10.43 kW solar system.
How much do residential solar panels cost for ACE customers?
Showing data for:
Prices based on a 8.6kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$87,414-$106,839
Payback period
3.5-4.3 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) 10.43 kW |
|
Annual Power Generation 13,961 kWh |
|
Pay-back time (assuming Cash purchase) 4 Years |
|
Internal Rate of Return (IRR) on Investment 20.9% |
|
Gross cost $31,223 |
|
Total Upfront Incentives and Rebates -$8,119 |
|
Net Cost of System after rebates and incentives $23,109 |
|
Total Cost of Utility Power Avoided over 25 years $92,880 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Atlantic City Electric (ACE) 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 Atlantic City Electric (ACE) customer installing a 10.43 kW solar system on their property:
A solar system generating 13,961 kWh per year will save you money AND make the world a nicer place
Saves you
$4,634
on average per year
Reduces CO2 emissions
6.91
tons per year
Equivalent to planting
48 trees
per year
Equivalent to driving
15,288 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 Atlantic City Electric (ACE) 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 $2.99 per watt or $23,109 for a standard 10.43 kW solar system after the customer claims the 30% federal solar tax credit.