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Solar Energy

We believe in the promise of clean energy and are committed to help lead that transition to a brighter future. By generating more energy from renewable resources, deploying new technologies and modernizing the grid to achieve a low- to no-carbon future, we are at the forefront of this transformation.

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Are Solar Panels Right for You?

Installing solar panels can reduce your impact on the environment and potentially your electricity cost. There's a lot to think about when determining if solar panels are a good option for you.

Before you make a decision, consider some of the facts and read our helpful guide.

Energy Independence

Typically, solar panels supplement your electric service and cannot operate independently of the electric grid unless it's specifically designed to provide back-up power. For safety, most solar panels shut-off during an outage, so they may not power your home during a service disruption. Also, you'll need to connect to the electricity grid to be compensated for the excess energy your panels produce.

Lease or Buy

When you lease a solar panel system, you can use the power it produces, but a third party owns it. You then pay that company to lease the equipment. When you purchase a system, you pay up front to install and own the panels, or finance the purchase and pay the costs of the equipment plus interest over time (typically 7-20 years). You're also responsible for maintenance and repairs. Whether you decide to lease or buy, it's important to review your contract and ask questions before agreeing to either option.

Helpful Guide for Homeowners

Helpful Guide for Homeowners

If you’ve been thinking about installing solar panels on your home, check out our guide.

Download our guide

How much will you save?

Solar panels are a big investment, whether you lease or buy. A number of factors make it difficult to determine the return on your investment, including:

  • Weather conditions
  • The energy efficiency of your home
  • Changes to electricity rates
  • Potential changes to the compensation for electricity placed back onto the electric grid

Crunch the numbers with this solar calculator which uses information about your location and estimates available sunlight year-round to approximate a return on your investment.


Do's and don'ts of hiring a contractor Understand your responsibilities before you sign a contract.

Solar installation checklist Use our checklist to help with your decision-making.

How to Apply For Interconnection Service

Before you install your solar panels, wind turbines or other distributed energy resources, and before you connect to our grid, you'll need to submit an interconnection service application. Once approved, you can install the system, and following a successful inspection of your equipment, you'll submit a signed agreement with us that governs the arrangement.

Check out our Quick-Start Guide for an overview of our application process and what to expect once your equipment is connected to our system. You’ll also find excellent resources for technical information as well as updated and relevant regulatory announcements on our Installing Generating Equipment page.

Apply for interconnection


Frequently Asked Questions

Expand the questions below to find answers to common questions.

You will receive compensation based on rates set by regulators. Find the most current rates that apply to your location.

If PSO is your Generation Supplier, then our net energy metering service enables you to offset the cost of your total bill from the energy that your generating equipment produces. If you generate more energy than you need, a bill credit (based on the generation component only of your total rate) from the leftover energy is applied based on the chosen rate plan. If this results in a $0 bill with a portion of the credit amount still remaining, then the remaining credit is applied to next month’s bill.

Net Energy Billing Option (NEBO)

NEBO is a time-of-day based tariff. During on-peak season (June-Oct) the rates are based on what time you use energy or generate energy with your system. A higher rate is applied to energy used between 2-7 p.m. on weekdays during peak season; therefore, customers who either generate enough energy to offset the majority of their usage or are able to adjust their usage outside of peak times are typically better candidates for this rate plan.

With the NEBO rate plan, the amount of energy delivered by the utility and the amount of energy generated by your solar system is netted, which means they are subtracted from one another and your monthly bill will be reduced by the difference in kWh, including associated fuel charges. If your system produces more energy than the amount that has been delivered during the on and off peak times for the month, PSO will pay you for the excess energy we receive from you, priced using an average avoided energy cost.

Standard Purchase Schedule (SPS)

With SPS you will be billed for delivered energy usage. In the event your system generates excess energy, you will receive a credit on your current month’s bill at an annually set price.

Yes. As a customer with an active account, you will still receive a billing statement from PSO that shows account information, current rates, meter information, and balances.

Energy Savings vs. Bill Savings

There are “fixed charges” on your bill, which are charges that exist no matter how much energy you use. Since your solar panels system can only be used to offset energy related charges (charges on a per kilowatt-hour basis), your bill savings will not exactly match your energy savings.

For safety reasons, your equipment may not power your home or business when there is an outage because it is synched with the power grid.

You are responsible for:

  • Compliance with all applicable laws, rules and regulations – as well as the easement, licensing, design, equipment, studies, protection, maintenance, and operation by qualified personnel required to accommodate power generation and/or storage.
  • Synchronization with the utility distribution system, and we are not responsible for damage to your equipment resulting from outages.
  • Cost of any negative impact, investigation, and system upgrades required to accommodate your connection, as well as future modifications prompted by changes in our system and type of service provided.

After an application has been approved, any changes to your system including equipment type, size or rating requires an updated application.

Not if it is strictly used as back-up. If it’s a so-called “make-before-break” system, you may be required to seek prior approval. Refer to the Installing Generating Equipment page for more information.

WindChoice is a convenient, renewable option that many customers have elected to use. Learn More.

More questions? Email us at dgcoordinator_PSO@aep.com. We are standing by to help.

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