Path-Q Solar

What operating savings can solar provide when a business has high daytime electricity use?

Answer

High daytime electricity use can increase solar’s operating savings because more generation may be consumed on site, reducing purchases during the hours when the system produces. The actual savings depend on the avoided energy rate, demand charges, export compensation, load shape, and system production.

Key points

  • Self-consumed solar generally avoids buying electricity at the applicable retail rate, subject to the bill structure.
  • Savings are strongest when business load overlaps with solar production.
  • Excess generation may receive a different credit or value than on-site consumption.
  • Demand-charge savings require the solar output to reduce the billing-period peak, not merely total energy use.

What it depends on

  • Interval load profile
  • Solar production by hour and season
  • Energy rates and demand-charge structure
  • Export credit or compensation rules
  • System size, operating schedule, and future load changes

Risks and trade-offs

  • A system sized for current daytime load may produce excess energy if operations change.
  • A large system may have diminishing value if exports are compensated poorly.
  • Savings can be overstated when annual energy use is used without hourly load data.

Information you may need

  • At least one year of utility bills
  • Interval consumption data if available
  • Business operating schedule and expected changes
  • Proposed hourly production estimate
  • Applicable energy, demand, and export charges

Your next step

What to do next

Match the proposed production profile to the business’s hourly load and calculate self-consumption, exports, and avoided charges separately.

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