Adding solar panels and switching rate plans can lower your Duke Energy Indiana electric bill
Updated: October 22, 2020There are three ways you can reduce your Duke bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. Duke doesn't offer time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, but there may be other options for you .
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
On this page:
Solar panel cost calculator
How much can I reduce my Duke Energy Indiana bill by switching to a different rate plan
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Duke Energy Indiana each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Duke Energy Indiana. Even a small savings can be worth it.
Are solar panels worth it for Duke Energy Indiana customers?
Probably. With solar property tax exemptions available, and Duke Energy’s strong net metering policy, solar panels can be a pretty smart investment in Indiana. Duke’s excess solar generation rate rider also allows you to at least get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate you pay for electricity, and roll over to the next month’s bill.
Does Duke Energy Indiana offer full 1 for 1 net metering credits for exported solar power
Yes, Duke Energy Florida offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid. These net metering rates are offered at retail rates as long as the total solar energy sent to Duke is at or below 1.5% of their peak loads.
In the case of Duke Energy Florida, this is approximately $.12 per kWh.
What incentives, tax credits and rebates are available to Duke customers for installing solar?
The major financial incentive currently available until the end of 2022 is the 26% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a Duke customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Renewable Energy Tax Credit (Federal) | -$6,171 |
| Solar and Wind Technologies Property Tax Exemption (State) | Varies |
|
Energy Conservation for Ohioans (ECO-Link)
(State)
Provides a 3% decrease in interest rates for home improvement financing with terms of 5 or 7 years. Must meet program requirements. |
Varies |
|
Net Metering
(State)
Utilities are required to offer 10 years of full-retail kWh credits to systems installed after January 1, 2018 and before July 1, 2022. For those systems installed after July 1, 2022, energy sent to the grid will be credited at the utility's marginal price of electricity plus 25%. |
Varies |
| Sales and Use Tax Exemption for Electrical Generating Equipment (State) | Varies |
| TOTAL | -$6,171 |
*Based on 10.18 kW system, average installation cost $23,735
How much does installing solar panels save the average Duke Energy Indiana residential customer?
If you input the details for a Duke customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.
The solar savings possible for you as a Duke customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical Duke customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.
How much do residential solar panels cost for Duke customers?
Solar prices near you
Net profit (savings less system cost)
$33,505-$40,950
Payback period
10.6-13 years
Recommended size for the selected utility bill
11.4kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 10.18 kW |
|
Annual Power Generation 14,226 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.4% |
|
Gross cost $23,735 |
|
Total Upfront Incentives and Rebates -$11,668 |
|
Net Cost of System after rebates and incentives $12,069 |
|
Total Cost of Utility Power Avoided over 25 years $64,523 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Duke Energy Indiana customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Duke Energy Indiana customer installing a 10.18 kW solar system on their property:
A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place
Saves you
$2,098
on average per year
Reduces CO2 emissions
7.04
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,578 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Duke Energy Indiana customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 26% federal solar tax credit.