Adding solar panels and switching rate plans can lower your Rocky Mountain Power electric bill
Updated: October 21, 2020There are three ways you can reduce your RMP Utah 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. RMP Utah 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 Rocky Mountain Power 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 Rocky Mountain Power each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Rocky Mountain Power. Even a small savings can be worth it.
Are solar panels worth it for Rocky Mountain Power customers?
Probably. With a $1,600 solar tax credit and the available Federal 26% tax credit, home solar panels are worth your consideration as a Rocky Mountain Power customer in Utah. RMP’s "net metering transition" rate also ensures you at least get some credit on your power bill for the excess solar electricity your panels produce. Your credits, while accruing at a lower rate than you pay for electricity, are rolled over and applied to your next month’s bill.
Does Rocky Mountain Power offer full 1 for 1 net metering credits for exported solar power
RMP Utah does not offer net metering, but is instead transitioning to a program that pays a lower compensation rate for excess energy produce by solar panels. Helpfully, the Utah government has created a website with the latest information about the program.
What incentives, tax credits and rebates are available to RMP Utah 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 RMP Utah customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,641 |
|
Net Billing
(State)
Energy usage is netted at 15 minute intervals. Any excess generation within a 15 minute interval will be credited at rates established by Utah law. Any net excess generation at the end of a billing period will expire with no compensation. |
Varies |
|
Renewable Energy Systems State Tax Credit
(State)
In 2019 the previous tax credit of $2000 was due to end, however in March 2019 the credit was changed to $1600 and extended for an additional 2 years through to 2021. After that point the credit will gradually reduce until it is eliminated at the end of 2023. |
-$1,600 |
| TOTAL | -$8,241 |
*Based on 10.18 kW system, average installation cost $23,735
How much does installing solar panels save the average Rocky Mountain Power residential customer?
If you input the details for a RMP Utah customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.
The solar savings possible for you as a RMP Utah 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 RMP Utah customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.
How much do residential solar panels cost for RMP Utah customers?
Solar prices near you
Net profit (savings less system cost)
$30,566-$37,358
Payback period
8.5-10.3 years
Recommended size for the selected utility bill
10.0kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 10.18 kW |
|
Annual Power Generation 14,226 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.4% |
|
Gross cost $23,735 |
|
Total Upfront Incentives and Rebates -$11,668 |
|
Net Cost of System after rebates and incentives $12,069 |
|
Total Cost of Utility Power Avoided over 25 years $64,523 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Rocky Mountain Power 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 Rocky Mountain Power customer installing a 10.18 kW solar system on their property:
A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place
Saves you
$2,098
on average per year
Reduces CO2 emissions
7.04
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,578 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 Rocky Mountain Power 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 $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 30% federal solar tax credit.