Path-Q Solar

How can I estimate solar value when my electricity bill includes a large fixed service charge?

Answer

Separate the bill into fixed charges that solar is unlikely to avoid and usage-based charges that solar may reduce, then value solar against the avoidable portion under the applicable billing structure.

Key points

  • Review each bill line rather than treating the total bill as energy cost.
  • Solar may reduce energy purchases without eliminating account, service, demand, minimum, or other non-energy charges.
  • The value of exported energy depends on the applicable tariff and billing rules.

What it depends on

  • Bill line items and which charges are avoidable
  • Energy consumption and solar production timing
  • Export compensation, demand charges, and billing structure
  • System cost and operating assumptions

Risks and trade-offs

  • Using the average total bill rate can overstate savings when fixed charges are large.
  • A system can reduce usage charges while leaving a substantial minimum bill.

Information you may need

  • Recent itemized bills
  • Tariff or billing documentation
  • Hourly or monthly usage if available
  • Proposed production and export assumptions

Your next step

What to do next

Mark each bill component as fixed, usage-based, demand-related, or export-related and ask for a savings model that uses the actual applicable billing rules.

Path-Q

Find the right next step

Answer a few questions and we’ll narrow your options.

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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

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