Path-Q Solar
How should I compare export terms when one proposal assumes a fixed credit and another assumes variable compensation?
Answer
Compare the proposals using the same production, load, self-consumption, and time horizon assumptions, then model the actual cash value of exported energy under fixed and variable terms. A fixed credit offers predictability; variable compensation may be higher or lower depending on timing and market or tariff conditions.
Key points
- Separate electricity used on-site from electricity exported, because the two may receive different values.
- Model seasonal production, hourly or time-based compensation, credit expiration, and any caps or fees.
- Use low, expected, and high export-value scenarios rather than relying on one assumed rate.
What it depends on
- Current tariff or contract terms
- Load profile and system production
- Export timing and compensation formula
- Credit rollover, settlement, and change provisions
Risks and trade-offs
- A fixed assumption can overstate value if it is not guaranteed for the modeled period.
- Variable compensation creates revenue uncertainty and may reward storage or load shifting.
- Annual average rates can hide important hourly or seasonal differences.
Information you may need
- Complete export agreements and tariff schedules
- Hourly or interval load and production model
- Credit caps, fees, expiration, and adjustment terms
- Storage and load-shifting assumptions
Your next step
What to do next
Ask each provider to rerun the proposal with a common hourly model and clearly identify which export assumptions are contractual versus illustrative.
Path-Q
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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