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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