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Is solar the best option to reduce your PSEG electricity bill?
What makes CutMyBill better than other solar cost and savings calculators for PSEG customers?
There are three key reasons that our PSEG solar cost and bill savings calculator is far better than any other solar calculator or solar estimate website on the net for PSEG customers;
- Firstly, whilst most solar panels calculators are really good at forecasting the electricity production you can get from installing solar panels for your home (because they all rely on the pwatts.nrel.gov solar production data) most of them just use a single generic state wide unit cost for electricity in their calculations. Our PSEG solar cost and bill savings calculator actually uses our database of each of the available PSEG electric rates plans to use more specific electricity cost data. Therefore we can generate much more accurate solar savings analysis.
- The second reason is that we use DOE (Department of Energy) electricity usage patterns for the PSEG service territory, and some very basic questions we ask you about your home to estimate how you use power over the course of a day and the seasons of the year. This allows us to accurately forecast solar savings where time of use electricity plans are available to you. We estimate your electricity usage for each hour of the year and then overlay the known production of solar panels in your area for each hour of the year. Without this level of detail solar panel cost and savings calculators on are inaccurate; and
- Lastly, before we even consider solar savings, we look for any savings that can be achieved simply by swapping to a cheaper available PSEG rate plan. Our software looks for any available PSEG rates plan that works our cheaper for your estimated usage pattern. Generally speaking savings from swapping to a cheaper PSEG rates plan are only available to those who have larger monthly electric bills but given it only takes a phone call to achieve these savings it is by far the quickest and easiest bill cutting option where it is possible.
Start your savings estimateCalculate
Will installing a solar power system or swapping rate plans save me the most on my monthly PSEG payment?
There are almost always far greater cost savings to be obtained from installing solar panels than swapping rates plans but this doesn't mean possible savings from swapping rate plans should be ignored. The other reason we search for your cheapest rate plan is that to forecast total possible savings you could get on your bill you need to take into account both savings that may be available from swapping to the cheapest rate plan and also savings that come from swapping your generation source for some of your power usage to your own solar power.
Compare savings from swapping rate plans to solar savingsCalculate
How accurate is the CutMyBill estimate of my power usage pattern?
The CutMyBill electricity usage profile estimator is a key part of the technology of why CutMyBill can forecast solar and bill swapping savings so accurately without requiring you to enter your kilowatt hour electricity usage for each month of the year or to upload 12 months worth of power bills.
The way we do this is we use electricity use profiles collected by the Department of Energy for each building type at each weather station across the PSEG service territory. Some of the characteristics of your home such as your average monthly power spend and the square footage of your home are used to refine this analysis.
This gives a fairly accurate estimate but it is not an exact estimate. The best way to get an exact estimate of your solar savings and whether or not there are possible savings from swapping rate plans is to speak to one of your local solar companies. Whilst solar companies are experts in solar they also become experts in knowing the cheapest rate plans (both before and after solar) from their local utility companies.
Estimate my power usage pattern over a day and over the seasons of the yearCalculate
There are three options that you can explore to cut your power bill as a PSE&G customer.
Pro's of solar panel installation: consumers in the PSE&G territory find it is often possible to save up to $70,000 by installing solar panels and get a full payback in 4-5 years on a product that will keep saving you money for 25 years or more. There are now also competitive financing options that mean most homeowners can get solar panels on a zero down loan.
Con's of installing solar solar: solar installation is a fairly big project and requires you to have enough unshaded roof space available to do it. Our calculator shows you how much roof space you need. Additionally, This bill savings option is usually not available to renters or people living in multi-family buildings (apartments or condos).
Pro's of swapping rate plans: swapping plans costs nothing and is easy to do.
Con's of swapping rate plans: monthly savings may be quite small, but given it costs nothing and only takes an email to PSE&G, why not?
Reducing electricity use through energy efficiency measures.
Pro's of energy efficiency: Installing energy efficient products can be a simple way to lower your electricty bill.
Con's of energy efficiency: Making your home more energy efficenty is always a pro, as long as it fits your lifestyle and budget.
Can I get a lower power bill by swapping to a different PSE&G rate plan?
PSE&G offer two plans, the tiered RS plan and the time-of-use plan, RLM. Swapping plans has the potential to lower your electricity bills. However, both plans are designed to cost the same for the average user. The amount you can save is minimal, usually about $0-$10 a month.
Swapping plan is relative easy and the savings can add up over time.
Additional effective ways to lower your electricity bills, are; adopting energy efficient measures or installing solar panels on your roof.
How much can I lower my power bill through adopting energy efficiency measures?
Energy efficiency can be broken up into two categories; Installing new devices, and how you use the devices you have.
Installing new devices is easy. This can range from installing energy efficient lights to getting rid of that old fridge. Most people don't realize that a new fridge or washing machine could lower your electricity bill significantly. New appliances are far more efficient than older models and as a result use less power.
The second category is both easier and harder to implement. Using your devices differently requires breaking habits, which is sometimes hard. Although, when your conscious about the energy you're using it can be easy to save dollars off your power bill. Taking shorter showers, hanging clothes out to dry, setting the washing machine to cold and turning plugs off at the wall are all ways that you can save money off your electricity bill.
How to calculate savings from energy efficiency measures?
The Department of Energy has developed a series of energy efficiency savings calculators that allow you to calculate the amount of money you could save broken down into the major categories of appliances that use power such as:
- Clothes washing and drying
- Food preparation and dishwashing
You can use these calculators here.
These calculators can be used to calculate savings that can be achieved by using these devices less frequently (lifestyle changes) and also savings that can be achieved by using more efficient versions of each of these appliances.
What incentives are available from PSE&G for energy efficiency?
PSE&G do not offer any incentives or programs for residential customers however they do offer free energy audits for commercial and multifamily dwellings. However, they do offer subsidized electricity rates for eligible customers.
What other government incentives are available to PSE&G Customers for energy efficiency?
New Jersey offers energy assistance programs and many other rebates and incentives for specific appliances.
There are also some rebates and tax credits available from the Department of Energy for installing energy efficient appliances and renovations.
Installing solar panels as a PSE&G Customer?
A constant theme on this website is that if you have a suitable house, installing solar panels is the single most effective thing you can do to reduce your long term power costs.
New Jersey is one of the best states in America to install solar. The payback period on a 6kW system is around 5 years. This means after 5 years the system will have paid for itself and you can enjoy 20 years of free power. This ridiculously short payback period is due to some great incentives in New Jersey.
Calculate your likely cost, savings and payback period from installing solar panels given your usageCalculate
What are the limitations of solar?
The most obvious downside of solar is perhaps that it is generally not available to renters and those living in multi-family buildings.
Of course, the other limitation of solar is that the sun only shines during the day, so it is not its own a permanent energy source. This is partly the reason why there is now so much interest in battery storage. Energy storage is needed to make intermittent renewable energy sources such as solar and wind usable at times when the sun isn’t shining or the wind isn’t blowing. This article explores the pros and cons of solar energy generally.
The net metering scheme available in New Jersey is effectively like a free battery, although it does not physically store the excess solar power, it economically stores the energy's value until you need to use it.
Should I install solar now or wait till the price drops?
Knowing when to buy solar can be tricky. The cost of solar has fallen dramatically and will continue to fall in the future. In a few years solar systems will be much cheaper than they are today. You’d think it would be better to install solar later, but in reality now, in 2018 as a PSE&G customer is probably the best time to install solar.
This is mainly due to the incentives available. PSE&G and the government will pay for a large portion of your solar system. At the start of 2020 the federal solar incentive has already started to reduce and PSE&G is one of the last utilities to still offer a rebate for solar. So, don't expect them to last forever.
If you were to wait 5 years, the system will be cheaper per watt than it is today. But, all the incentives available today will be gone. The incentives available to PSE&G customers reduce the final cost of the system dramatically.
Right now is a great time to invest in solar as a PSE&G customers. The incentives available now make solar a great deal. These incentives won't last forever, they have an expiry date and that date is coming soon. If you've ever thought about installing solar , contact local installers today before you miss out on the generous incentives.
Find more about Public Service Electric & Gas Co (PSEG) electric rate plans.