Well - this is more than we were expecting

Personal Finances Building / Maintaining a Home
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I had solar panels installed on my house in November 2025, to help offset spiking electric bills. As part of the financial analysis to figure out if the panels would be worth it, I modeled out 3% annual increases in electric rates. When the panels were turned on, the rate was $0.0899 per kWh, plus an additional $0.039693 per kWh distribution charge, bringing the total itemized variable costs to $0.129593 per kWh

In today’s mail, I got a note indicating that the generation charge is increasing to $0.1019 per kWh in or around April, 2026. Adding that same $0.039693 per kWh distribution charge brings the new total itemized variable costs to $0.141593 per kWh. That’s around a 9.25% increase, roughly 6 months after the panels were installed.

I guess the good news is that the faster rate increase will help accelerate the break-even date of the panels and improve their ROI. Still, this is one investment that I wish wasn’t delivering beyond my expectations, as higher energy costs tend to have a ripple effect throughout the economy.

Regards,

-Chuck

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FWIW, here in CT my rate is $0.29063 per kWh, so double yours. But I have net metering, so -456.3 kWh was my grid usage for March. Eventually I get some of that excess to the grid credited at the buy rate, so I’m not worried about the rate going up. :sunglasses:

Calculating my break even point for the solar is complicated by having bought a battery system with it, and that comprises about half the cost. And I took the offered 0.99% interest rate 10 year loan to confuse it a bit more. That said, if I simply look at half my monthly payment as going toward solar, the other half for the battery, the amount I am saving by not paying out for electricity is greater than that half, even without factoring those refunds.
(Return on the half for the battery? In a bit under 3.5 years total power outages have totaled 45 events and 19 hours, with 12 hours the longest. I can’t put a dollar value on it, and am well off enough not to have to, but it does provide some peace of mind.)

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