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Solar Install options

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Which solar rate is right for you?

We offer two rate choices for members who own solar generation.  One gives you credit on your electricity bill for excess energy produced and the other does not.

 

Distributed Generation: If you wish to receive credit for excess energy produced, you will need to select the Distributed Generation rate. This rate differs from the standard residential rate in that it has a $57.50 monthly facility fee (versus $25/month for the standard rate) and a flat energy rate of 7.78 cents plus adjustments per kWh (versus 10.87 cents plus adjustments for less than 500 kWh and 8.97 cents plus adjustments for more than 500 kWh). You must request this rate and remain on it for a minimum of 12 months.

 

Standard: If you elect to remain on the standard rate, you will be charged the same facility fee and energy charges that you are currently.  However, you will not be credited for any excess energy produced by your system that is not used in the home. Typically, a solar installation will produce most of its energy at a time of day when the home’s load is not very high.  This could result in a major loss of energy production.  

 

You can see the difference between the two rates in the following real-life examples from our members.

Example 1: Distributed Generation Rates (Rate schedule 201)

Residential Energy Charges once enrolled in the Solar Rate 

All kWh = $0.0798/kWh

Service Charge: $57.50

Example of Residential Distributed Generation Rate

Most homes have a single-phase service and with average monthly demand of fewer than 500 kwh (kilowatt-hours)  The below estimation is an example of one home with one meter. The table below illustrates how residential bills are calculated. This example is based on one month where 1000 kWh were used, and 100kWh were generated by solar panels. 

Therefore, only 900kWh are billed. 

Small Power Distributed Generation (Solar)
(Rate Schedule 201) 
      Rate Cost
Service Charge     $57.50 $57.50 
Energy charge  900 kWh $0.079800 $71.82
         
PJM Cost     $0.022095 $19.89
Power Cost Adjustment (PCA)     -$0.003637 -$3.27
         
Subtotal       $145.93
Indiana State Tax     $0.07 $10.22
Total Bill       $156.15
Example 2: Standard Residential Rate (Rate schedule 101)

Residential Energy Charges:

1-500 kWh = $0.108782/kWh

Over 500 kWh = $0.089782/kWh

Service Charge: $25.00

Example of Residential Rates

Standard residential rates have a lower service charge, but do not take in to account metered solar production. The below estimation is an example of one home with one meter. The table below illustrates how residential bills are calculated. This example is also based on one month where 1000 kwh (kilowatt hours) were used, but with no solar billing offset. 

Single phase residential
(Rate schedule 101)
      Rate Cost
Service Charge     $25.00 $25.00 
Energy charge for first  500 kWh $0.110782 $55.39
Energy charge for remaining 500 kWh $0.091782 $45.89
PJM Cost     $0.022095 $22.10
Power Cost Adjustment (PCA)   -$0.003637 -$3.64
         
Subtotal       $144.74
Indiana State Tax     $0.07 $10.13
Total Bill       $154.87


Need more help deciding which solar rate to choose?

Watch this video for even more information to help you decide. You can also browse the solar energy rates FAQs or contact us.

 

 

 

appplication.png

 

Solar Energy Rate FAQs

Why is there a rate difference?

Nearly all electric utility rates use a portion of the energy charge to cover fixed costs of operating the utility. Fixed costs are those costs associated with simply having and maintaining a system for members to use, regardless of how much they use it.

Under the standard rate, some of these fixed costs are recovered in the kWh charge.  Under the Distributed Generation rate, these fixed costs are recovered in the monthly facility fee.

Why does NREMC offer a choice of rates?

As a member-owned cooperative, we strive to treat our members fairly and equitably. Every member needs to pay for their use of the electric distribution system and not have the other members subsidize them. The only equitable way to accomplish this was to move the fixed costs into a fixed charge.

Generally speaking, what rate makes the most sense for members?

Generally speaking, you will probably benefit from the distributed generation rate unless you have a small system and/or low usage. This is the rate we recommend most often to our members.

How does NREMC's program/rates compare to others?

Other power company programs are constantly changing and evolving so we cannot comment on other programs. We always do what is best for all of our members.

Why does every power company have a different program?

We are all independent entities with different cost structures, budgets, goals, and philosophies. Some have state mandates they must follow, and others follow the directions of elected officials or boards of directors.

Is there a fee to change my meter?

There are no fees or charges to change your meter. All of Northeastern’s meters are capable of metering in both directions. They can both measure what we supply to you and what you may send back to us. We will not need to change the meter, but we will need to reprogram it.

How big of a system can i install?

Residential solar systems are limited to 15kW DC . 

Can I change my solar rate?

Yes you can, but please keep in mind:

  • Your rate will become effective at the next billing cycle; we don't change rates mid-cycle.
     
  • The 201 Distributed rate requires a commitment of a minimum 12 months. After that, you can change rates.
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  • My Account
    • Pay Now/View Bill
    • Understanding Your Bill
    • Payment Options
    • Moving
    • Capital Credits
    • Rates
    • New Member
  • Programs and Services
    • Solar Energy Options
    • Tree Trimming and Removal
    • Surge Protection
    • Propane
    • Water Heater Rebate
    • Security Lighting
    • Electric Standards Manual
    • Peak Thermostat Program
  • Safety
    • Request a Safety Demo
    • Call Before You Dig
    • Power Line Safety
    • Pet Safety
    • Tree Planting Safety
  • Community Involvement
    • Art Contest
    • College Scholarship
    • Co-Op Connections Discount Card
    • Operation Round Up®
    • Camp Kilowatt
    • Youth Tour to Washington, D.C.
  • Power Outages
    • Report an Outage
    • Outage FAQs
    • Outage Map
  • About Us
    • Contact Us
    • News from NREMC
    • Blog
    • Our History
    • Leadership and Board Members
    • Employment
    • Newsletters
    • Governance
    • Touchstone Energy Cooperatives
    • Cooperative Principles
    • Kilowatts and Coffee Video Series
  • Board Election