New York City is one of the strongest solar markets in the country, and there are two factors that are driving this—a high cost of power and a strong incentive program. These make the cost of solar versus grid power extremely affordable in the city.
The national average cost of power is around 11 cents per kilowatt-hour (kWh). However, in New York City, we pay more than twice that. We pay two sets of charges in New York. One is for supply, which is the actual energy that is being produced at the generation plant, from sources like coal, natural gas, and nuclear power. And the other is for delivery, which is the price you are paying to have the electricity shipped to your home.
BREAKDOWN OF FOSSIL ELECTRICITY COST
The supply cost is reflective of the cost of the natural resources associated with generating electricity. This charge will fluctuate throughout the year. You may notice a spike in your electric bills during a very cold winter due to a scarcity of natural gas. Or there may be a spike in the summer due to increased demand for electricity. Unfortunately, we do not have a lot of control over this cost, which actually comprises about 40% of your monthly electric bill.
The delivery cost is a bit more puzzling, because there is no physical delivery of power to your home. The electricity flows over our network of power lines. Conceptually, this seems to be a one-time, fixed expense in the infrastructure. The problem New York City faces is our outdated infrastructure, which requires millions of dollars every year to maintain. Not to mention the rising costs of labor. This is why you pay roughly 60% of your monthly electric bills toward delivery, even though ConEdison doesn’t physically come to your house with a box of power.
As high as your electric costs are today, they will only continue to go higher. As per ConEdison’s announcement on January 1, 2016 there was a 7.9% increase in delivery costs for NYC customers. Hikes are inevitable; electric rates historically rise anywhere from 3-6% per year. With solar, you can hedge against rising costs through a fixed, predictable cost of energy. Just another way solar will save you tens of thousands of dollars.
How can solar energy help?
Here’s the good news—solar helps with both these charges. Both supply and delivery are a reflection of the number of kilowatt-hours that you consume from the grid. When you go solar, we will eliminate as much of your utility demand as possible, which will offset both supply and delivery. So, say goodbye to high electricity costs.
Your solar specialist at Venture Solar will work with you to find the solution that makes the most sense for your needs and goals for your solar project.