Adding solar panels and switching rate plans can lower your Salt River Project (SRP) electric bill
Updated: October 22, 2020There are three ways you can reduce your SRP 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. SRP 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 Salt River Project (SRP) 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 Salt River Project (SRP) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Salt River Project (SRP). Even a small savings can be worth it.
Are solar panels worth it for Salt River Project (SRP) customers?
Yes, with the $1,000 Arizona tax credit, and solar property and sales tax exemptions, solar panels make a lot of sense for Salt River Project customers. SRP net billing 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 Salt River Project (SRP) offer full 1 for 1 net metering credits for exported solar power
No, Salt River Project (SRP) 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.
SRP offers several rate plans for its customers with solar panels. All of them include time-of-use billing and some of them include a demand charge based on the maximum kW of demand during any day in a month.
That means if you have, for example, your clothes dryer, air conditioner, and electric stove running at the same time and your solar panels aren't making energy, your demand is very high and you'll be charged a lot.
Perhaps the simplest SRP solar plan is the Time-of-Use Export Price Plan, which does not include a demand charge, but does include on- and off-peak pricing for the winter, summer, and summer-peak parts of the year. The plan also includes a monthly service charge of $32.44.
What incentives, tax credits and rebates are available to SRP 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 SRP customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$8,233 |
|
Net BIlling
(State)
Customers will be credited at a specific rate for net excess generation but they don't have to receive the full retail amount. |
Varies |
|
Solar and Wind Equipment Sales Tax Exemption
(State)
State sales tax will not be applied on qualified solar systems. Exempts sales tax from being applied to RECs |
Varies |
|
Energy Equipment Property Tax Exemption
(State)
Solar system adds no value to property for tax assessment purposes. |
Varies |
| Residential Solar and Wind Energy Systems State Tax Credit (State) | -$1,000 |
| TOTAL | -$9,233 |
*Based on 11.32 kW system, average installation cost $28,442
How much does installing solar panels save the average Salt River Project (SRP) residential customer?
If you input the details for a SRP customer with a power bill of $250 per month into the best online solar panels calculator, it tells you that you need a 11.32 kW solar system that will produce 19,682 kWh per year and that this system will return the owner a $31,123 profit after repaying the cost of the system.
The solar savings possible for you as a SRP 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 SRP customer with a $250 per month electric bill prior to solar and who installs a 11.32 kW solar system.
How much do residential solar panels cost for SRP customers?
Showing data for:
Prices based on a 9.8kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$24,689-$30,175
Payback period
9.7-11.9 years
Recommended size for the selected utility bill
9.8kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 11.32 kW |
|
Annual Power Generation 19,682 kWh |
|
Pay-back time (assuming Cash purchase) 12.1 Years |
|
Internal Rate of Return (IRR) on Investment 1.4% |
|
Gross cost $28,442 |
|
Total Upfront Incentives and Rebates -$8,394 |
|
Net Cost of System after rebates and incentives $20,044 |
|
Total Cost of Utility Power Avoided over 25 years $51,167 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Salt River Project (SRP) 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 Salt River Project (SRP) customer installing a 11.32 kW solar system on their property:
A solar system generating 19,682 kWh per year will save you money AND make the world a nicer place
Saves you
$1,245
on average per year
Reduces CO2 emissions
9.74
tons per year
Equivalent to planting
68 trees
per year
Equivalent to driving
21,553 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 Salt River Project (SRP) 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 $2.51 per watt or $20,044 for a standard 11.32 kW solar system after the customer claims the 30% federal solar tax credit.