FLAT Rate Structure
Solar ROI for AEP Ohio Customers
AEP Ohio charges an average of $14.8¢/kWh. A 7 kW solar system produces a $4,779 NPV over 25 years.
$13,818
Net System Cost
$4,779
25-Year NPV
11 years
Payback Period
$0.177/kWh
Solar LCOE
AEP Ohio Rate Structure
| Parameter | Rate |
|---|---|
| Average residential rate | $14.8¢/kWh |
| Rate structure | FLAT |
| Export credit policy | 1:1 net metering with Ohio SREC market |
Solar System Economics
A 7 kW solar system for a AEP Ohio customer costs $19,740 before incentives. The 30% federal ITC saves $5,922. The net out-of-pocket cost is $13,818.
At AEP Ohio's $14.8¢/kWh average rate, the system saves $1,191 in year one, producing 8,050 kWh. The solar LCOE of $0.177/kWh is -20% below AEP Ohio's current rate.
Battery Storage for AEP Ohio Customers
$8,400
Battery Net Cost
$0
Daily Arbitrage
$0
Annual Arbitrage
-$11,382
25-Year Battery NPV
AEP Ohio 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 AEP Ohio Customers
How much can AEP Ohio customers save with solar?
A typical 7 kW solar system saves AEP Ohio customers approximately $1,191/year in electricity costs. Over 25 years, the NPV of savings after system costs is $4,779.
What is AEP Ohio's rate structure?
AEP Ohio uses a flat rate structure at an average of $14.8¢/kWh. Without a large peak/off-peak spread, battery storage value comes primarily from backup power and net metering optimization.
Does AEP Ohio offer net metering?
1:1 net metering with Ohio SREC market
Should AEP Ohio customers add battery storage?
Battery storage for AEP Ohio 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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