Solar vs Utility: What are the costs?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Utility power is more expensive than solar due to the added cost of fuel, transmission, labor, billing, customer service, continuous investment, maintenance, losses, taxes and profit. The assumption that economy of scale of a utility would result in lower costs for electricity does not hold true.

Most of the power generated by public utility companies requires that fuel – coal, natural gas, oil or uranium – be purchased and consumed to generate electricity.

Solar power utilizes free energy from the sun.

Electricity is likely generated in the utility’s facilities located hundreds of miles from your property, requiring the further expense of transmission and distribution systems to deliver power. There are losses due to resistance in the wires, representing a further cost that must be passed on to consumers.

Solar panels are located on your home, where the electricity is needed. No additional cost or loss.

Power generating plants, transmission and distribution systems require manpower to operate, incur costs to maintain, administer and manage. Having customers requires utilities to spend of meters, billing, advertising, public/ governmental relations and service.

Solar panels are virtually maintenance-free, warrantied and guaranteed, with no manpower, administration or management costs.

As demand for electricity increases, and infrastructure ages, significant amounts must be spent by the utility, and these costs are passed along to the consumer in the form of regular rate increases.

With your solar power investment, no additional expense is incurred for a minimum of 25 years, and up to 40 years or more, with no increase in the price of electricity generated by solar over this period.

Utility power is taxed by the regulator, state, county and city. The utility must return a profit to its shareholders on investments made, which in turn increases the price of electricity charged to the consumer.

Property owners receive tax credits when investing in solar power and pay no taxes.

Expect to pay a fixed price of 4 to 5 cents per kWh for 30+ years investing in solar for your property. In Arizona, the average APS customer pays about 12 cents per kWh, and after 30 years this could easily be 20 or 25 cents per kWh based on historical increases.

Which would you rather pay?

Want to save money and stay informed?

Subscribe to the Solar U newsletter to be the first to know about solar savings and investment opportunities in Arizona.

More To Explore

Are Your Solar Panels Not Producing Their Rated Watts?

A solar system is designed with focus on the lowest investment and highest annual power production. Having panels produce at their rated power is not part of the equation. Yes, I realize how odd that must sound.

Solar: What’s holding yours up?

Please, save yourself the headache and expense. Have your roof inspected before installing solar!

Too many solar owners end up paying $5 – 10,000 to remove and reinstall their racking, panels and wiring, then spend $1000s more to repair their roof.

Are you looking to invest in solar for your home or business?

Let's talk. Rich offers you the best price and honest advice on all things solar.

Get in touch

Our first priority is education, ensuring all your questions are answered.

Not sure what to ask? Browse Solar U to help you get on your way!