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FLAT Rate Structure

Solar ROI for Chugach Electric Customers

Chugach Electric charges an average of $21.8¢/kWh. A 7 kW solar system produces a $10,519 NPV over 25 years.

$14,455
Net System Cost
$10,519
25-Year NPV
9 years
Payback Period
$0.210/kWh
Solar LCOE

Chugach Electric Rate Structure

ParameterRate
Average residential rate$21.8¢/kWh
Rate structureFLAT
Export credit policyNet metering at retail rate with annual true-up

Solar System Economics

A 7 kW solar system for a Chugach Electric customer costs $20,650 before incentives. The 30% federal ITC saves $6,195. The net out-of-pocket cost is $14,455.

At Chugach Electric's $21.8¢/kWh average rate, the system saves $1,541 in year one, producing 7,070 kWh. The solar LCOE of $0.210/kWh is 4% below Chugach Electric's current rate.

Battery Storage for Chugach Electric Customers

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

Chugach Electric 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 Chugach Electric Customers

How much can Chugach Electric customers save with solar?
A typical 7 kW solar system saves Chugach Electric customers approximately $1,541/year in electricity costs. Over 25 years, the NPV of savings after system costs is $10,519.
What is Chugach Electric's rate structure?
Chugach Electric uses a flat rate structure at an average of $21.8¢/kWh. Without a large peak/off-peak spread, battery storage value comes primarily from backup power and net metering optimization.
Does Chugach Electric offer net metering?
Net metering at retail rate with annual true-up
Should Chugach Electric customers add battery storage?
Battery storage for Chugach Electric 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.

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