There are some things best left in 2021: COVID shots, those old sweatpants that lost its drawstring years ago, and your electric bill. What makes 2022 the best year to gain electric independence? Here’s a few reasons.
Rates Are Up, Up, And In Your Face
electric rates in Texas are higher than ever, and will continue to go up. CPS Energy customers received a Christmas present from Krampus last year that included a 3.85% base rate increase and 0.8% fuel increase for 2022 and a proposed 5.5% increase in 2024, followed by another 5.5% in 2026.
But they’re not the only ones. PEC and GVEC had rate increases during 2021 after the February winter storm nearly destroyed the Texas electric grid system. Which, by the way, will soon be going through a weatherization update and a new statewide power outage alert system that’ll cost electric providers millions.
Here’s a graph of electricity rates from the end of 2016 to October 2021 provided by Texas Electricity Ratings demonstrating an increase in cost per kilowatt/hour.
Rebates Are Going, Going…
Utility companies have offered rebates to residential and commercial property owners that have decided to go solar. This usually amounts to a couple thousands off an entire solar panel system. Unfortunately, because the demand for solar is increasing and more people are making the shift to green energy, fewer people can take advantage of them. Utility companies like CPS Energy have a set budget specifically for these rebates. Once they reach that quota, that’s the end of the rebates. Adios! Sayonara! Buh bye!
While it’s possible they’ll increase the budget, it’s unlikely. Going solar gets cheaper by the day and more people are realizing how much money they can save by switching, utility companies won’t need to add incentives. But it sure would be nice! (want to learn more about utility companies and solar? Check out our article on Net Metering)
The Final Countdown for the Tax Credit
The Federal government has been incentivizing eligible property owners to go solar with a big tax credit. The tax credit that can be claimed on their federal income taxes decreases until it eventually expires in 2024. The incentive started in 2019 at 30%, but fell to 26% in 2020. The next decrease is scheduled for the beginning of 2023 where the tax credit will drop to 22%. (Want to learn more about the tax credit? Check out our video on the subject below)
No Grid? No Problem!
New IQ8 microinverters from Enphase allow solar panels to produce electricity even if the grid is down. This is a big game changer for people not ready to invest in a backup generator or batteries but still want independence from the fragile ERCOT electric grid. Although backup power banks still serve a vital use in providing power even in hours of darkness, these new microinverters will revolutionize solar technology. (Want to learn more about backup power? Check out our comparison of the Enphase Battery and the Tesla Powerwall)
See For Yourself
Want to find out if solar is right for your home or business? Schedule an appointment with one of our solar consultants today.
You can also find additional answers on our Frequently Asked Page.