Yes, initially participants will pay more. However, by participating in Tallahassee Solar, customers will likely see a lower energy bill over the long term. Tallahassee Solar is unique in that it provides customers with the option of using solar energy without the up-front cost of installing solar panels on their home or business, which can cost tens of thousands of dollars.
The rate for Tallahassee Solar is 5 cents per kilowatt hour (kWh), which is charged in lieu of the normal Fuel Charge. This rate is fixed until September 30, 2037. Customers who do not participate in Tallahassee Solar pay the normal Fuel Charge, which currently hovers around 3.5 cents per kWh. The Fuel Charge is a rate paid by all electric customers to recover the costs of the natural gas used to generate electricity in the City’s power plants.
Since it is expected that in the future the Fuel Charge will rise from its current historically low level, the difference between the two rates will likely narrow. It is expected that the fuel charge will rise above 5 cents per kWh before September 30, 2037. When this occurs, Tallahassee Solar customers will pay less than non-participants.