Before considering adding solar, it is an important first step to consider the energy efficiency of your property. The steps you take to make your home more efficient are very important to lowering your electric usage and costs,
which helps sets a lower baseline for the size and cost of the solar installation you may need. Our Energy Services Office can assist you in this assessment.
After you have your electric costs and usage complied, compare the cost of the solar panels over time with financing, and the projected production and potential energy savings,
along with your goals. While solar prices have come down some over the years with addition of incentives such as tax credits, depending on the project, it’s often not the least expensive energy source of energy.
When considering adding solar panels to a home or property, it’s important to do a thorough assessment to help make informed decisions based on your goals and energy needs.
WILL YOU SAVE MONEY?
Bill savings or “zero your utility bill” is a common touted benefit from solar vendors. Whether buying or leasing a system, the payback in energy savings would need to equate to the cost of the system outright or over time—considering the life of the system and with all financing costs.
CWLP currently offers full retail net metering and interconnection to its electric system for its residential and commercial customers installing solar. If the solar array you install produces more electricity than the property consumes during a billing period, CWLP customers are billed for zero (0) kWh and the excess is banked for future use until each March billing cycle when the banked credits are expired. This is why it’s important to consider the right size solar project for your year-round energy usage and not to invest in a system that is over-built beyond your needs and producing well above your annual energy consumption.
To calculate your CWLP residential energy cost, it would be reasonable to use 12 cents per kWh and an escalation factor of no more than 2% per year or see just the electric portion of the bill showing total electric charges. In 2023 and in the previous few years, CWLP residential electric rates have been well below the state average. As an example, in January 2024 the average CWLP customer (using 953 kWh/month) had electric charges totaling of $109.40 compared to the average of Illinois utilities who paid $142.28 for the same usage.
CWLP recommends customers compare their electric charges to all the costs for solar including for equipment, installation, maintenance, financing and any other costs associated with the solar project. Include the net metering benefits projected along with other incentives, rebates, or tax credits—and ensure you meet the qualifications —and include those amounts to determine how it offsets the cost of a solar project.
To help homeowners and small business operators make more well-informed decisions, see our checklists to consider on whether to go solar and what you should review when choosing a project and installer. You can also below review our Net Metering program details for guidelines on applying and our requirements.
BEFORE YOU GO SOLAR
- Does your property pass the energy efficiency test? Is it well insulated, are your appliances and lighting energy efficient, do you manage your thermostat, is your heating and air conditioning system efficient? These are lower cost investments you should consider to begin to yield energy savings before adding solar.
- Determine what sun exposure your property has for rooftop or ground-mounted solar. For rooftop installations, ensure the condition of your roof is adequate and that you have easy and safe access to allow for effective inspection, maintenance, and repair.
- Check with your homeowner’s insurance company about the addition of solar panels.
- Review any rules for solar installations of your property’s homeowner’s association if applicable.
- Determine your property’s current average energy use and energy cost.
- Consider the right size solar project and don’t overbuild beyond your expected annual energy use. If the solar array produces more electricity than the property consumes during a billing period, CWLP customers are billed for zero (0) kWh and the excess is banked for future use until each March billing cycle when the banked credits are expired. If you install a solar project that is going to produce significantly more than your annual energy consumption, you’ll lose investment as banked credits do not carry over beyond a year.
- Review CWLP’s Net Metering Program information below for the process for application to interconnect and guide to our requirements.
CHOOSING A SOLAR COMPANY
- Ensure the company is insured and will use a licensed electrician that is registered with the City of Springfield for installation.
- Ask for references and search company through the Better Business Bureau (BBB).
- Request proposals from 2 to 3 reputable solar contractors and compare offers.
QUESTIONS TO ASK
- What are the options and differences for buying or leasing?
- What does the bid include and what are all the costs for permitting, equipment, installation labor and maintenance?
- What are the terms of financing and what is the interest rate and duration (in years) of the financing agreement?
- What will my monthly loan payments be and what will the projected monthly cost savings be on my electric bill?
- What happens if I move?
- What is the warranty for the solar panels and the inverter?
- If there are incentives, who completes the paperwork for the potential tax credits, rebates and other incentives? What are the tax credit requirements?
- Will a professional contractor be used to ensure a system is correctly sized and installed. Are the workers installing the system employees or subcontractors?
- How much energy is the system projected to produce and how will it match up against my annual energy use?
- Does the company’s product offer a safe power off for disconnection on the exterior of the property?
- How familiar is the company with CWLP’s application and requirements?