Adding solar panels and switching rate plans can lower your Potomac Edison Maryland electric bill
Updated: October 22, 2020There are three ways you can reduce your Potomac Edison 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. Potomac Edison 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 Potomac Edison Maryland 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 Potomac Edison Maryland each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Potomac Edison Maryland. Even a small savings can be worth it.
Are solar panels worth it for Potomac Edison Maryland customers?
Absolutely. Maryland has a juicy SREC program which amounts to $900 annually for you as a solar owner. The state also offers a $1,000 solar rebate, battery storage rebate, and solar sales and property tax exemptions; making solar panels for your home a smart choice for Potomac Edison customers. Potomac’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 Potomac Edison Maryland offer full 1 for 1 net metering credits for exported solar power
Yes, Potomac Edison Maryland 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 Potomac Edison Maryland, this is approximately $0.12 per kWh.
What incentives, tax credits and rebates are available to Potomac Edison 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 Potomac Edison customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,299 |
| Solar Renewable Energy Certificates (SRECs) (State) | Varies |
|
Property Tax Exemption for Clean Energy Systems
(State)
100% property tax exemption for solar energy property |
Varies |
|
Residential Clean Energy Grant Program
(State)
Fixed $1,000 grant |
-$1,000 |
|
Net Metering
(State)
Utilities must provide compensation for excess energy at the full retail rate |
Varies |
|
Sales and Use Tax Exemption for Solar Energy Equipment
(State)
Sales and use tax does not apply to solar energy equipment |
Varies |
| TOTAL | -$7,299 |
*Based on 9.53 kW system, average installation cost $21,996
How much does installing solar panels save the average Potomac Edison Maryland residential customer?
If you input the details for a Potomac Edison customer with a power bill of $140 per month into the best online solar panels calculator, it tells you that you need a 9.53 kW solar system that will produce 12,269 kWh per year and that this system will return the owner a $36,213 profit after repaying the cost of the system.
The solar savings possible for you as a Potomac Edison 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 Potomac Edison customer with a $140 per month electric bill prior to solar and who installs a 9.53 kW solar system.
How much do residential solar panels cost for Potomac Edison customers?
Solar prices near you
Net profit (savings less system cost)
$34,400-$42,044
Payback period
10.5-12.8 years
Recommended size for the selected utility bill
12.9kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.53 kW |
|
Annual Power Generation 12,269 kWh |
|
Pay-back time (assuming Cash purchase) 9.1 Years |
|
Internal Rate of Return (IRR) on Investment 6.8% |
|
Gross cost $21,996 |
|
Total Upfront Incentives and Rebates -$7,719 |
|
Net Cost of System after rebates and incentives $14,278 |
|
Total Cost of Utility Power Avoided over 25 years $50,491 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Potomac Edison Maryland 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 Potomac Edison Maryland customer installing a 9.53 kW solar system on their property:
A solar system generating 12,269 kWh per year will save you money AND make the world a nicer place
Saves you
$1,449
on average per year
Reduces CO2 emissions
6.07
tons per year
Equivalent to planting
43 trees
per year
Equivalent to driving
13,435 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 Potomac Edison Maryland 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 $2.31 per watt or $14,278 for a standard 9.53 kW solar system after the customer claims the 30% federal solar tax credit.