Path-Q Solar
What happens to solar savings if the utility pays less for exports than I pay for electricity?
Answer
Solar electricity used in the home can still avoid purchases at the applicable retail rate, but exported electricity earns only the lower export credit. As a result, total savings depend more on self-consumption, load shifting, system sizing, and possibly storage, rather than on producing as much energy as possible.
Key points
- The difference between import and export prices creates a penalty for producing energy that is not used on-site.
- Fixed charges may remain even when solar offsets most energy consumption.
- Using appliances during solar-production periods can increase the value of generation without adding equipment.
- Storage can shift some excess energy to later use, subject to losses and cost.
What it depends on
- Import rate and export compensation
- Hourly production and consumption alignment
- Fixed charges and billing rules
- System size and battery configuration
- Future rate or tariff changes
Risks and trade-offs
- A larger system may deliver diminishing savings if additional production is mostly exported.
- Battery economics depend on installed cost, useful life, efficiency, and cycling.
- Changing utility terms can alter the result after installation.
Information you may need
- Utility tariff and export-credit calculation
- Hourly or interval usage
- Proposed production profile
- Fixed monthly charges and battery assumptions
Your next step
What to do next
Ask for a self-consumption and export breakdown rather than relying on an annual offset percentage, then compare system sizes and storage options.
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