San Antonio has caught solar fever! This year alone, CPS Energy added $15 million to their solar rebate program. But is going solar really worth it? Will you actually save money? We have the answers to all that and more by our solar power saving tips. Keep reading.
How Much Will You Save When You Go Solar in San Antonio?
On average, San Antonio residents use 1,104 kilowatt hours per month, making the average monthly residential bill $119.23, or a yearly total of $1430.76. This can increase in the summertime from June-September when Peak Capacity Charges are in effect. Solar is set at a fixed cost that is intended to replace your CPS bill (aside from the $8.75 service charge.) The yearly escalation rate for electricity prices is between 3 and 4 percent. Essentially, your electric bill will continue to increase, while your solar payment will stay the same until it is paid off and then you are producing all of your electricity at zero cost. So, let’s break this down.
CPS Energy Rebate
CPS offers a rebate when you go solar in San Antonio. The rebate is up to 70 cents/watt–we go into units of power in a different article, so let’s keep this simple for now. Going off the average of 1,104 kwh per month, average yearly consumption would be 13,248 kwh, and to meet this production you would need roughly an 8.8 kw system. The maximum rebate on a system this size comes to $6,182.40.
Federal Tax Credit
The Federal Government offers a tax credit of 30% when you go solar. Essentially, when you file taxes at the end of the year, you are allowed to claim 30% of the cost of your system (*the total price after subtracting the CPS rebate.) Once you receive this 30%, you apply it to your solar loan.
So to recap, you save money by going solar in San Antonio 3 ways:
1. Monthly savings (this increases over time as you avoid the increase in electric costs that you would have spent.)
2. CPS Energy rebate that decreases your system cost
3. Federal tax credit that covers 30% of the cost of your system after rebates