Adding solar panels and switching rate plans can lower your Ohio Power Co (AEP Ohio) electric bill
Updated: October 22, 2020There are three ways you can reduce your AEP 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. AEP 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 Ohio Power Co (AEP Ohio) 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 Ohio Power Co (AEP Ohio) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Ohio Power Co (AEP Ohio). Even a small savings can be worth it.
Are solar panels worth it for Ohio Power Co (AEP Ohio) customers?
Probably. With solar property tax exemptions in the Cincinnati and Cleveland areas, AEPs relatively good net metering policy, solar panels a pretty smart investment in Ohio. AEPs net metering policy 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 at a lower rate than you pay for electricity, roll over to the next month’s bill.
Does Ohio Power Co (AEP Ohio) offer full 1 for 1 net metering credits for exported solar power
No, Ohio Power Co (AEP Ohio) does not offer full 1 for 1 net metering. You will get full credit up to your monthly usage, however. For any excess kilowatt hours you send back to AEP beyond your usage, you will be credited at a lower rate of $.045/kwh.
What incentives, tax credits and rebates are available to AEP 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 AEP customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$9,018 |
|
Ohio Solar Renewable Energy Credits
(State)
SRECs sold for about $5.00. |
Varies |
|
Energy Conversion and Thermal Efficiency Sales Tax Exemption
(State)
Applies to commercial and Industrial systems only. |
Varies |
|
Net Metering
(State)
Net metering customers are not credited for distribution and transmission on monthly net excess generation. |
Varies |
| TOTAL | -$9,018 |
*Based on 12.84 kW system, average installation cost $30,058
How much does installing solar panels save the average Ohio Power Co (AEP Ohio) residential customer?
If you input the details for a AEP customer with a power bill of $140 per month into the best online solar panels calculator, it tells you that you need a 12.84 kW solar system that will produce 15,077 kWh per year and that this system will return the owner a $35,219 profit after repaying the cost of the system.
The solar savings possible for you as an AEP 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 AEP customer with a $140 per month electric bill prior to solar and who installs a 12.84 kW solar system.
How much do residential solar panels cost for AEP customers?
Showing data for:
Prices based on a 11.9kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$32,616-$39,863
Payback period
9.7-11.8 years
Recommended size for the selected utility bill
11.9kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 12.84 kW |
|
Annual Power Generation 15,077 kWh |
|
Pay-back time (assuming Cash purchase) 12 Years |
|
Internal Rate of Return (IRR) on Investment 1.6% |
|
Gross cost $30,058 |
|
Total Upfront Incentives and Rebates -$7,816 |
|
Net Cost of System after rebates and incentives $22,244 |
|
Total Cost of Utility Power Avoided over 25 years $57,463 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Ohio Power Co (AEP Ohio) 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 Ohio Power Co (AEP Ohio) customer installing a 12.84 kW solar system on their property:
A solar system generating 15,077 kWh per year will save you money AND make the world a nicer place
Saves you
$1,409
on average per year
Reduces CO2 emissions
7.46
tons per year
Equivalent to planting
52 trees
per year
Equivalent to driving
16,510 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 Ohio Power Co (AEP Ohio) 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 $2.34 per watt or $22,244 for a standard 12.84 kW solar system after the customer claims the 30% federal solar tax credit.