This month, electric utility customers who receive their generation supply through AEP Ohio’s Standard Service Offer will see an increase in their bill. To help customers understand the reasons behind the rate change, as well as the implications for homes powered by solar, we asked our experts to explain.
AEP Rate Increase at a Glance
- In the two most recent auctions, the lowest bids submitted by those who supply energy to AEP were significantly higher than prior cycles.
- These suppliers attribute the higher cost of generation to increased consumer demand, supply chain issues, and the war in Ukraine.
- The 28% rate increase will remain in effect until May 2024.
For more information see AEP’s FAQs.
Many of our solar customers have asked how this will change their bill, Below explains how this increase impacts homes with solar power.
How the Rate Increase Impacts Solar Customers
- If your home generates solar power and you’re currently enrolled in AEP’s net metering program, your bills will only increase if your annual solar production is less than your annual usage.
- Any excess power produced by your PV system will be credited to your account at the same higher rate mentioned above.
- If your PV system produces 100% or more of your annual usage, changes to supply/generation costs will not affect your bill.
Note: Changes to transmission and distribution costs may also vary over time, but these changes tend to be smaller.
So how can I manage my energy costs to keep them consistent?
The 30% Federal Solar Tax Credit combined with recent rate increases, make solar a cost-effective way to regulate electricity costs.
When working with customers, we calculate future energy savings, factoring current energy rates and expected changes to utility
bills. Whether you pay up front for a PV system or finance, you will have fixed electricity costs for the next 25 years.
Our solar experts are here to help understand your needs, the costs involved and the return on investment. Schedule a free, no-obligation quote today to explore your options.