Path-Q Solar

Can solar savings be estimated accurately if my electricity rates change during the year?

Answer

Yes, but the estimate should use time-specific rates and the system's time-matched production and consumption rather than one annual average. Accuracy is limited by uncertainty in future rates, tariff changes, exports, weather, load changes, and system performance, so a range of outcomes is more credible than a single precise number.

Key points

  • Match hourly or period-specific solar output to the rate applying when energy would otherwise be purchased.
  • Include seasonal rate changes, time-of-use periods, demand charges, and export compensation where relevant.
  • Model multiple future-rate cases and identify which assumptions drive the result.

What it depends on

  • Current and historical tariff schedules
  • Interval consumption and production profiles
  • Export and demand-charge treatment
  • Expected future rate and load changes

Risks and trade-offs

  • An annual average can misstate savings when high rates occur outside solar-production hours.
  • Future tariff changes may either improve or reduce the system's value.
  • Precision in the model can create false confidence when the inputs are uncertain.

Information you may need

  • Time-varying rate schedules
  • Interval utility data
  • Monthly or hourly production forecast
  • Conservative, central, and high-rate scenarios

Your next step

What to do next

Use a time-matched cash-flow model and ask the provider to show sensitivity to rate and export assumptions.

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SQ01185