Understanding the financial and environmental case for solar in West Penn Power territory
If your electric bills have skyrocketed recently, you’re not alone. West Penn Power’s supply rates have jumped 115% since 2020 – from just 5.1 cents per kWh to 10.94 cents per kWh today.
When you add distribution charges, the total cost is approximately $0.172 per kWh – and climbing. For the average Bedford County household using 1,000 kWh per month, that’s $172 in electricity costs every single month.
Pennsylvania has some of the best net metering policies in the country, and West Penn Power makes it simple.
Every kilowatt-hour your solar panels produce gets credited at the full retail rate (~$$0.172/kWh). Your meter literally runs backwards when you’re producing more than you’re using.
Your credits bank throughout the year. In May, West Penn Power settles your account. Any excess production is purchased at a lower wholesale rate, which is why we size systems to match your annual consumption.
Produce excess power during long summer days, bank those credits, and use them during winter months when production is lower. It all balances out over the year.
Your solar kWh is worth exactly the same as the utility’s kWh. Full retail credit means you’re saving the complete $$0.172/kWh – not some reduced “buy-back” rate like some states.
Scenario: You use 12,000 kWh per year. Your 10 kW solar system produces 12,000 kWh per year.
Pennsylvania’s solar program pays you extra for every kWh you produce – on top of your electricity savings.
Pennsylvania requires utilities to purchase a certain percentage of their electricity from solar sources. When your system produces 1,000 kWh of solar electricity, you earn 1 SREC that you can sell to utilities who need them to meet their requirements.
SRECs currently trade for approximately $0.025 - $0.040 per 1,000 kWh, which translates to an additional $0.025 - $0.040 on top of your electricity savings.
| Annual production: | 12,000 kWh |
| SREC value (conservative): | $$0.025/kWh |
| Additional annual income: | $300 |
This is passive income on top of your $2,064 in electricity savings, bringing your total annual benefit to $2,364.
For years, homeowners could claim a 30% federal tax credit on their solar installation costs. Unfortunately, this incentive is no longer available for new installations.
While the tax credit expiration is disappointing, the underlying economics of solar in Bedford County remain compelling:
Solar panels are warrantied for 25 years, but often produce for 30-40 years. Let’s look at the real long-term economics.
| Year | Annual Savings | Cumulative Savings | Notes |
|---|---|---|---|
| 1-5 | $2,364/year | $11,820 | Building toward payback |
| 6-8 | $2,364/year | $18,912 | Approaching break-even |
| 9 | $2,364 | $21,276 | System paid off! |
| 10-25 | $2,364+/year* | $59,100+ | Pure profit for 16+ years |
*Assumes flat electricity rates. If rates increase 3% annually (conservative), your Year 25 cumulative savings would exceed $80,000.
Investment: $20,000 one-time cost
25-Year Return: $59,100+ in savings (minimum)
ROI: 295% over 25 years, or about 11.8% annually
Try finding a savings account or investment that guarantees 11.8% annual returns with zero risk.
If you’re operating a farm or agricultural business in Bedford County, solar makes even more sense.
The USDA Rural Energy for America Program provides grants covering up to 25% of solar installation costs for agricultural producers. This partially offsets the expired federal tax credit.
Farms typically use more electricity than residential properties (irrigation, barn equipment, processing facilities). Larger solar systems mean proportionally larger savings.
Solar installations qualify for accelerated depreciation (MACRS) for businesses, providing significant tax deductions beyond the savings on your electric bill.
Farms often have ideal open land for ground-mounted solar arrays, which can be easier and less expensive to install than rooftop systems.
Let’s review your electric bills and property to create a custom solar proposal for your specific situation.