Path-Q Solar

What electricity price assumptions should be checked before trusting a solar savings estimate?

Answer

Check the starting electricity rates, time-of-use periods, demand or delivery charges, fixed charges, export compensation, escalation assumptions, taxes and fees, and whether the model values self-consumed and exported energy differently. Savings should be based on your actual tariff and usage pattern, not only on a single average price.

Key points

  • Separate charges that solar can potentially avoid from fixed or non-bypassable charges.
  • Confirm the rate period and whether the estimate uses current, historical, or projected prices.
  • Check whether exported energy is credited at a different rate or subject to limits, credits, or settlement rules.
  • Run low, central, and high price scenarios rather than relying on one escalation rate.

What it depends on

  • Applicable electricity tariff
  • Hourly consumption and solar production
  • Self-consumption and export treatment
  • Future rate assumptions and contract structure

Risks and trade-offs

  • Aggressive price escalation can make payback appear shorter than it is.
  • Averages can overstate savings under time-varying rates.
  • Changing tariffs or export rules can materially alter future savings.

Information you may need

  • Recent complete utility bills and tariff documents
  • Interval consumption data, if available
  • Quote's rate, export, and escalation assumptions
  • Alternative savings scenarios

Your next step

What to do next

Recalculate the estimate using your current tariff and at least one conservative rate scenario.

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