Solar billing encompasses the billing methods and compensation structures utilities use to account for electricity generated by customer-owned photovoltaic systems and grid interactions. These mechanisms determine financial returns on solar investments and vary significantly by utility and region.
Common Models
Net metering credits customers for 100% of exported electricity at retail rates, offsetting consumption kilowatt-for-kilowatt. Net billing compensates exports at wholesale rates (50% to 75% of retail) while charging retail rates for imports. Time-of-use (TOU) billing pays premium rates for peak-hour exports while charging higher rates for peak consumption. Feed-in tariffs provide fixed rates guaranteed for 15 to 20 years, typically set above retail rates.
Billing Statement Components
Solar bills detail monthly generation, self-consumption percentages, net exports or imports, and corresponding credits or charges. Utility-provided monitoring platforms show real-time system performance and historical production trends. Annual true-up adjustments settle net energy positions. Understanding billing structure is critical for accurate ROI calculations, with payback periods ranging from 5 to 10 years depending on compensation rates and local electricity costs.