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Understanding Subsidized Rate Plans
Updated over a week ago

Some electric utilities offer specialized rate discounts to certain customer groups, such as low income, medical assistance, or disability discounts. These programs can vary widely in their scope and details. Major utility subsidized rate programs are listed below. This list covers most major utilities in which LightReach offers our Energy Plan. However, the list is not exhaustive and other utilities may offer programs of their own.

In many cases, homeowners who receive rate discounts from these programs may save less, or not at all, with solar. Homeowners on these types of programs should consider a few things when going solar:

Your Energy Plan Rate

Your Energy Plan Rate: Your LightReach Energy Plan rate is detailed on the summary page of your contract. It should be highlighted prominently by your solar installer. This rate per kWh (or ‘unit of power’) is the price you will pay for 1x kWh from the solar system. In some states, as required by regulations, the Energy Plan contract takes the form of an equipment lease, with set monthly payments. In those states, however, the lease payment amount is still based around expected production of the system.

When reviewing your Energy Plan, it’s important to compare against your current electric bill rate. Bear in mind that annual escalators, or increases, may apply to your Energy Plan as well. Depending on your Energy Plan contract, these escalators may be lower than your electric utility’s annual rate increase, which can vary over time and is influenced by a variety of factors.

Your Discounted Electric Utility Rate

Depending on your electric utility, your bill will typically display your rate per kWh or rate code directly on your bill. This rate per kWh should be compared to your Energy Plan contract. Bear in mind that utility electric rates typically increase over time. Important things to consider include:

  • Your Electric Utility rate per kWh vs your Energy Plan rate per kWh

  • Your Electric Utility’s historic rate increases or planned increases

  • Your goals for going solar, whether they be savings, gaining long term energy stability, or environmental

For example: A homeowner has a $0.15/kWh Electric Utility low income rate

  • A $0.10/kWh Energy Plan = $0.05/kWh lower than electric utility rate. This homeowner will see immediate savings through their Energy Plan.

  • A $0.20/kWh Energy Plan = $0.05/kWh higher than electric utility rate. This homeowner may not see immediate savings through their Energy Plan.

Expert Analysis

Need help to review your bill? We offer rate expert analysis for any homeowners participating in subsidized utility rate programs. Send us a copy of your recent bill to [email protected], and we’ll reply with our unbiased analysis.

Your Options

All LightReach customers have a limited right to cancel within 10 days of the contract signing, prior to solar installation. Should you have any questions, you can contact us anytime at [email protected]

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