Path-Q Solar

How does exporting excess electricity affect a solar system's financial return?

Answer

Exporting excess electricity improves financial return only by the value assigned to those exports. If exported energy receives less value than electricity used on site, a system that produces large surpluses may have lower marginal savings than a system better matched to on-site consumption.

Key points

  • Separate self-consumed generation from exported generation in the financial model.
  • Export compensation may differ from the retail purchase price and may include timing or settlement rules.
  • Load shifting, batteries, or a smaller system can increase self-consumption, but each has a cost.
  • Oversizing can add production while contributing less savings per additional unit of capacity.

What it depends on

  • Current export compensation and billing rules
  • Hourly load and solar production
  • System size and orientation
  • Battery or load-shifting capability
  • Utility charges and settlement period

Risks and trade-offs

  • Assuming all production offsets retail-priced consumption can materially overstate return.
  • A battery may increase self-consumption but introduce cost, degradation, and efficiency losses.
  • Export rules can change and may differ by customer class or interconnection arrangement.

Information you may need

  • Current utility tariff and export terms
  • Interval consumption data
  • Hourly production estimate
  • Battery and controllable-load options

Your next step

What to do next

Request a model that reports self-consumption, exports, avoided purchases, and export credits separately for each month.

Path-Q

Find the right next step

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

Loading…

SQ01442