Adding solar panels and switching rate plans can lower your New Hampshire Electric Cooperative electric bill
Updated: October 22, 2020There are three ways you can reduce your NHEC 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. NHEC offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.
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 New Hampshire Electric Cooperative 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 New Hampshire Electric Cooperative each year for no reason.
Finding out what's available to you is as simple as a phone call or email to New Hampshire Electric Cooperative. Even a small savings can be worth it.
Are solar panels worth it for New Hampshire Electric Cooperative customers?
Probably. With the state’s $1,000 solar rebate program and local options for property tax abatements, home solar panels can make a lot of sense for New Hampshire Electric Cooperative customers. Unfortunately, NHEC imposes a member surcharge for anyone who wants to go solar every month. That amount can make your long term solar investment picture look not as bright. NHEC’s solar rate plan also 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 accruing at a much lower rate than you pay for electricity, roll over to the next month’s bill.
Does New Hampshire Electric Cooperative offer full 1 for 1 net metering credits for exported solar power
No, New Hampshire Electric Cooperative does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.
The amount you are paid by the utility is known as a feed-in tariff. In the case of New Hampshire Electric Cooperative, this feed-in rate is $0.01 per kWh.
The rate NHEC pays for your excess power is about 25% of retail rates.
What incentives, tax credits and rebates are available to NHEC 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 NHEC customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$8,182 |
|
Local Option - Property Tax Exemption for Renewable Energy
(State)
Cities have the option to exempt the cost of a solar system from property taxes. Not statewide. |
Varies |
|
Residential Small Renewable Energy Rebate Program
(State)
$0.20/watt rebate capped at $1,000. |
-$1,000 |
|
Net Metering
(State)
Utilities, except municipal, must offer net metering. Can offer full kWh credits on the bill or send customer check for avoided cost rate of excess kWh. |
Varies |
| TOTAL | -$9,182 |
*Based on 9.54 kW system, average installation cost $28,273
How much does installing solar panels save the average New Hampshire Electric Cooperative residential customer?
If you input the details for a NHEC customer with a power bill of $170 per month into the best online solar panels calculator, it tells you that you need a 9.54 kW solar system that will produce 11,332 kWh per year and that this system will return the owner a $48,887 profit after repaying the cost of the system.
The solar savings possible for you as a NHEC 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 NHEC customer with a $170 per month electric bill prior to solar and who installs a 9.54 kW solar system.
How much do residential solar panels cost for NHEC customers?
Showing data for:
Prices based on a 8.3kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$37,451-$45,774
Payback period
7.2-8.8 years
Recommended size for the selected utility bill
8.3kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.54 kW |
|
Annual Power Generation 11,332 kWh |
|
Pay-back time (assuming Cash purchase) 8.9 Years |
|
Internal Rate of Return (IRR) on Investment 7.3% |
|
Gross cost $28,273 |
|
Total Upfront Incentives and Rebates -$9,852 |
|
Net Cost of System after rebates and incentives $18,424 |
|
Total Cost of Utility Power Avoided over 25 years $67,310 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of New Hampshire Electric Cooperative 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 New Hampshire Electric Cooperative customer installing a 9.54 kW solar system on their property:
A solar system generating 11,332 kWh per year will save you money AND make the world a nicer place
Saves you
$1,955
on average per year
Reduces CO2 emissions
5.61
tons per year
Equivalent to planting
39 trees
per year
Equivalent to driving
12,409 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 New Hampshire Electric Cooperative 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 $2.96 per watt or $18,424 for a standard 9.54 kW solar system after the customer claims the 30% federal solar tax credit.