January 5, 2018

The Truth About Connection Fees

Solar Energy

How do Shine Solar customers get their flat rate?

Here at Shine Solar, education is our number one goal as solar is still so new in the Midwest. This is why we often share what savings some of our clients are receiving so you can learn the truth regarding solar savings. For example, one of our favorite videos is this one, which shows a customer’s utility bill over three months.The questions we always get with this video is, “How is their utility bill the same price of $15 for three months in a row? That can't be the truth.”This $15 charge isn’t from the electricity this customer is using, but is actually the connection fee the utility company charges each month.

What is the connection fee?

The connection fee is the amount your utility company charges each month for you to be connected to their grid. When people install solar panels onto their homes, they often stay connected to their utility company. Their utility company then acts as a backup for their home if they ever use more energy than they are producing. This also allows customers to take advantage of net metering, where you receive credit for any excess energy that you send back into the grid. You can read more about net metering here.

Thanks to net metering, when you receive your electricity bill at the end of the month it is likely that you will only see your connection fee.The current debate regarding the connection fee is that some utility companies are raising their connection fees to make up for the money they are losing from residents going solar. This has been a huge debate in states like California and Arizona. However, since solar is still so new to the Midwest, there hasn’t been too much of this happening here.And it is this very price uncertainty that has led millions of people to choose solar power. The sun continues to provide a free source of energy. Solar panels continue to drop in price (80% since 2008!). And, the best news of all, solar payments don’t randomly increase. Solar payments remain the same price.

Why do we have it?

You may be wondering, “Why do we stay connected to the grid if they will charge us these connection fees?”. Right now, the technology for solar battery backup is not cost-effective. So staying on the grid and paying these connection fees is actually the better and cheaper option right now.But don’t worry, as solar battery technology develops, there will always be the opportunity to go off the grid. Receive a free solar analysis today to learn about your future savings from going solar.

Is solar a good fit for your home?

Find out now!

If you are considering going solar, the first step is to get a solar savings report to determine if solar is right for you and your home. Click the button below to get your solar savings report now!

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Nick Gorden

Nick Gorden is the Co-founder and CEO of Shine Solar. Nick’s energy, enthusiasm, and leadership is contagious and has contributed to attracting a talented and successful executive team. His time is focused on strategic growth, maintaining profitability and creating the optimal customer experience. Nick has started, managed and sold companies within the communications, mortgage lending, insurance and real estate industries resulting in tens of millions of dollars of market value to investors.

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