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Credits each month, the "Avoided cost" breakdown

Posted by James Bartley on Jul 25, 2019 5:14:00 PM

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Solar Flair Ep. 4Avoided Piggy Break

Speaker 1: So it's pretty crazy that the utility companies will actually compensate you after you go solar. Now the common misconception is, is that they're going to write you a hard check and send this in the mail every single month, and that's just simply not true. So what we wanted to make sure you knew what it looked like was, so if you use the same amount that you produce in a month's time, it's an even trade, great handshake, everything's all said and done.

Speaker 1: But let's say it's the middle of the summer and you're overproducing what you're using. So this is your usage, this is your production. What that really looks like is pennies on the dollar. This is their avoided costs in which they normally pay for electricity that they then sell for you, so you're making pennies on the same dollar.

Speaker 1: Now in a grandiose kind of picture, what it looks like is to say, "Hey, January through December, you're going to produce less in these winter months here," okay. January, December, obviously, and then as the sun rises higher in the sky, is out for more days, you have these months that you start overproducing your usage. You can see this here, and that's when you're going to start depositing these here.

Speaker 1: But you're not always going to overproduce. That's not a guarantee that anyone can make, that you're going to produce more than you use every month out of the year. And so when you get to those winter months where you're not producing as much as you're using, you get to break into that theoretical bank and take advantage of those pennies.

Speaker 1: This has been another episode of Solar Flair, not the explosion type.

Topics: Solar Flair