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FLAT Rate Structure

Solar ROI for TVA / Local Distributors Customers

TVA / Local Distributors charges an average of $11.8¢/kWh. A 7 kW solar system produces a $4,709 NPV over 25 years.

$13,328
Net System Cost
$4,709
25-Year NPV
11 years
Payback Period
$0.141/kWh
Solar LCOE

TVA / Local Distributors Rate Structure

ParameterRate
Average residential rate$11.8¢/kWh
Rate structureFLAT
Export credit policyGreen Invest or distributor-specific buyback

Solar System Economics

A 7 kW solar system for a TVA / Local Distributors customer costs $19,040 before incentives. The 30% federal ITC saves $5,712. The net out-of-pocket cost is $13,328.

At TVA / Local Distributors's $11.8¢/kWh average rate, the system saves $1,156 in year one, producing 9,800 kWh. The solar LCOE of $0.141/kWh is -19% below TVA / Local Distributors's current rate.

Battery Storage for TVA / Local Distributors Customers

$8,400
Battery Net Cost
$0
Daily Arbitrage
$0
Annual Arbitrage
-$11,382
25-Year Battery NPV

TVA / Local Distributors uses a flat rate structure without significant peak/off-peak spread. Battery value comes primarily from backup power and net metering optimization rather than TOU arbitrage.

FAQ: Solar for TVA / Local Distributors Customers

How much can TVA / Local Distributors customers save with solar?
A typical 7 kW solar system saves TVA / Local Distributors customers approximately $1,156/year in electricity costs. Over 25 years, the NPV of savings after system costs is $4,709.
What is TVA / Local Distributors's rate structure?
TVA / Local Distributors uses a flat rate structure at an average of $11.8¢/kWh. Without a large peak/off-peak spread, battery storage value comes primarily from backup power and net metering optimization.
Does TVA / Local Distributors offer net metering?
Green Invest or distributor-specific buyback
Should TVA / Local Distributors customers add battery storage?
Battery storage for TVA / Local Distributors customers has a 25-year NPV of -$11,382. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Alabama

Alabama Power
$13.5¢/kWh · FLAT
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