Transitioning to solar energy is a significant investment, and calculating potential solar savings using past energy bills is a valuable first step. Pepco is one of Maryland’s primary energy providers. Their monthly utility bills include usage data, rate and fee structures, metering and savings measurements, historical energy usage, and more. By analyzing historical usage, cost, and savings data, homeowners can estimate their potential savings with solar power and calculate the financial viability of a new installation. This article aims to help homeowners understand and use their Pepco bill to optimize their solar savings in the coming years.
Essential Components of a Pepco Power Bill
A Pepco power bill includes multiple parts that homeowners should know how to read. Page One includes an “Electric Bill Summary,” which details the home’s previous balance, payments, and current balance. This consists of a summary of “Supply” and “Delivery” charges, summarizing power usage in the last pay period.
Pages two and three display the “Details of your Electric Charges.” This is historical information that homeowners can use to evaluate their solar savings. Under “Delivery Charges” on Page Two, the bill lists the costs paid by the utility provider to deliver power to the home. This section includes customer charges, energy charges, taxes, and administrative credits.
Page Three lists the “Supply Charges,” or the electricity production costs, including transmission and generation services, cost adjustments, and energy charges. Under this table of charges, the bill lists “Your monthly Electricity use in kWh” for the current year compared to the previous year in the form of a bar graph.
This graph is fundamental to comprehending a home’s energy consumption and calculating potential savings. Using current and previous energy bills, homeowners can calculate changes following their solar installation.
How to Calculate Savings With Your Pepco Bill
Once you have gathered past Pepco bills and understand how they display information, you can use these steps to estimate potential solar savings on current and future bills:
1. Calculate Average Energy Consumption
Homeowners can use past Pepco bills to view their monthly kWh usage or estimate their usage with the comparison graph at the end of their “Supply Charges.” By viewing the last 12 months of power consumption, homeowners can calculate their average monthly electricity usage before and after installing solar power.
2. Estimate Solar Energy Production
By observing a change in on-grid power consumption, homeowners can use their historical usage data to estimate the impact of their solar panels. The efficiency of solar panels depends on several factors, including the array’s location, orientation, and construction. However, on average, Maryland homeowners observe an 88% decrease in grid-based power reliance after installing solar panels.
3. Calculate Net Metering Benefits
Pepco uses a net metering service, which converts excess energy generated by a solar installation into financial credits. Pepco measures this electricity each month and carries the difference to next month’s credits, which can be viewed on the monthly bill. Net metering caps, conditions, and exclusions can change, so homeowners should use the Database of State Incentives for Renewables & Efficiency (DSIRE) to understand their eligibility.
4. Compare Costs
By multiplying the average monthly energy consumption of the home (kWh) by the current power rate shown on your Pepco bill, homeowners can estimate what their monthly costs would have been without a solar installation. Then, subtract the expected solar energy production from the total power consumption and apply an estimate of net metering credits. The result will be an estimation of total solar savings.
5. Add Financial Incentives
In addition to making usage data comparisons, homeowners should factor in federal and state solar incentives, home improvement tax credits, and other financing options to calculate their potential long-term savings by switching to solar. This can be challenging to accomplish without the help of an experienced solar energy provider, who can estimate your potential state savings based on customer data and your situation.
Partner With Energy Select to Maximize Solar Savings
By carefully reviewing the history of your Pepco bill, you can make informed decisions in your transition to solar energy. A careful bill review will contextualize monthly energy usage, net metering credits, and rate changes over time to help estimate solar energy savings.
In addition to reducing overall energy costs, solar installations offer homeowners access to state and federal financial incentives to switch to solar power. At Energy Select, we help homeowners understand their energy bills, calculate their potential solar savings, and install solar arrays that are ideal for their homes.
Contact our team today to understand your power bill and calculate your solar savings.