Adding solar panels and switching rate plans can lower your Nashville Electric Service electric bill
Updated: October 22, 2020Installing solar panels can help reduce your NES bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Nashville Electric Service customers?
Perhaps. With the Federal 26% solar tax credit and available sales tax exemption, home solar panels could be an investment worthy of your careful consideration as a Nashville Electric Service customer in Tennessee. The state legislature could make the picture look better by implementing a statewide net metering policy which would ensure you get full retail rate credits for the excess solar energy you produce onsite which you can’t use. TVA currently sets those rates, and they’re far lower than retail.
Does Nashville Electric Service offer net metering credits for exported solar power?
No, Nashville Electric Service does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.
What incentives, tax credits, and rebates are available to NES customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a NES customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$10,424 |
|
Green Energy Property Tax Assessment
(State)
The assessed value of the system cannot exceed 12.5% of total costs of the installation. |
Varies |
| TVA - Green Power Providers (Utility) | Varies |
| TOTAL | -$10,424 |
*Based on 13.46 kW system, average installation cost $34,746
How much does installing solar panels save the average Nashville Electric Service residential customer?
If you input the details for a NES customer with a power bill of $150 per month into the best online solar panels calculator, it tells you that you need a 13.46 kW solar system that will produce 18,605 kWh per year and that this system will return the owner a $42,285 profit after repaying the cost of the system.
The solar savings possible for you as a NES customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical NES customer with a $150 per month electric bill prior to solar and who installs a 13.46 kW solar system.
How much do residential solar panels cost for NES customers?
Showing data for:
Prices based on a 11.9kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$37,175-$45,436
Payback period
9.2-11.3 years
Recommended size for the selected utility bill
11.9kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 13.46 kW |
|
Annual Power Generation 18,605 kWh |
|
Pay-back time (assuming Cash purchase) 11.7 Years |
|
Internal Rate of Return (IRR) on Investment 2% |
|
Gross cost $34,746 |
|
Total Upfront Incentives and Rebates -$9,034 |
|
Net Cost of System after rebates and incentives $25,711 |
|
Total Cost of Utility Power Avoided over 25 years $67,996 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Nashville Electric Service customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Nashville Electric Service customer installing a 13.46 kW solar system on their property:
A solar system generating 18,605 kWh per year will save you money AND make the world a nicer place
Saves you
$1,691
on average per year
Reduces CO2 emissions
9.21
tons per year
Equivalent to planting
64 trees
per year
Equivalent to driving
20,373 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Nashville Electric Service customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.58 per watt or $25,711 for a standard 13.46 kW solar system after the customer claims the 30% federal solar tax credit.