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.

Path-Q

Find the right next step

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

Loading…

SQ01684