Electric Cost Savings

Let Green Way Solar help take the mystery out of those power bills!

The price we pay for electricity is measured in kWh. (kilowatt-hour). Our utility company monitors our electric meter and charges us for each kWh we use each month.

These charges are broken down into three (3) fees:

  • Generation Fee, the cost we pay to the utility co. per kWh to generate electricity from electric generation sources such as coal, nuclear, and gas-fired generation plants.

Some states, like PA, allow you to choose an alternate supplier as the generation co. for your electricity. Be advised that in Pennsylvania, alternate suppliers are not required under PUC rules to participate in “Net Metering”, a PA Public Utility Commission (PUC) rule that requires your utility co. to provide credit for the energy a solar system produces. Learn more here about the PA PUC. Also, please review our section on Net Metering.

  • Transmission Fee, the cost we pay to the utility co. per kWh to transport electricity from electric generation sources such as coal, nuclear, and gas-fired generation plants to our local neighborhoods.
  • Distribution Fee, the cost we pay to the utility co. per kWh to deliver the electricity to our home or business. This includes local wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from the high-voltage transmission lines. The combination of the above charges per kilowatt-hour and customer and tax surcharge charges make up the total price we pay for electricity each month. These rates are regulated by the PA State Public Utilities Commission (PUC). Learn more

Below is a generic sample of a PP&L electric bill:

PUC Electric Bill Breakdown

Per the US Energy Information Administration, the average price for electricity in Pennsylvania, also known as the “full retail rate” is .14 (fourteen cents) per kWh. Like most products we consume, electricity is subject to regular rate increases as approved by the PUC.

Homeowners wishing to attain true energy independence and avoid the endlessly higher costs of electricity now see solar as a viable option to “lock-in” the price they pay for electricity for the expected life of their solar system. Why not generate the power where it’s actually needed instead of paying the utility co. fees to transport it from distant generation facilities?

Solar modules, also known as panels, installed by Green Way Solar now come with a 25-year production warranty from the manufacturer which make a move to solar an attractive way to save on energy bills. A Green Way Solar energy system is designed and constructed with components to provide many years of useful life up to and exceeding 25 years.

Most solar customers remain connected to the “grid” even after their solar system is installed. This is called a “grid-tied” solar energy system, and one that is designed to off-set 100% of a customer’s current electric usage will reward them by having only to pay the “customer and tax surcharge” portion of their future utility bills. In the example provided, the customer’s electric bill will be reduced from $191.69 per month without solar, to $8.59 per month with solar.

Over a period of 25 years, a customer’s current monthly electric bill equaling $191.69, with a 3% per year increase, will swell to $401.36 a month in 25 years! A solar system will save you tens of thousands of dollars over its useful life.

Electric cost savings through reduced electric bills, energy independence, and protection from future rate increases is just one of the many financial benefits of choosing solar!