How does utilities billing work with a solar system installed?
How does utilities billing work with a solar system installed?
Solar Power Question:
“If you have a solar powered system, how does the billing work?” Or in other words how do BC Hydro and FortisBC calculate net metering?
Both BC Hydro and Fortis BC calculate net metering based on two time frames: Billing Periods & Annual Reconciliation.
Billing Periods
During a billing period, if your solar system generates more energy than you consume, the excess energy is typically credited to your account for future use.
Example: Your solar power system produces 2,600kW and you consume only 1,600kW in a billing period. You will not be charged for any power usage.
A credit of 1,000kW will carry forward to the next billing period.
During the next billing period, if the weather turns ugly and you produce only 500kW, but use 2,500kW, the previous credit of 1,000kW would be subtracted and you would only be billed for 1,000kW of power consumption.
This net metering process allows you to maximize the benefits of your solar investment by offsetting higher usage periods with surplus energy generated during more productive times, ultimately leading to potential savings on your utility bills.
Annual Reconciliation
Once a year, typically on the anniversary of your Grid-Tie system’s installation, the utility company will conduct a reconciliation of your energy production and usage.
They will calculate how many kilowatt-hours (kWh) your system generated throughout the year and subtract the total energy you consumed from the grid.
If your solar system generated more electricity than you used over the year, resulting in a surplus or credit on your account, some utility companies may issue you a cheque for the excess energy.
It’s important to note that utility companies typically buy back energy at a lower rate than what you pay for the power. We aim to design systems that are close to net zero, for optimal ROI.
This annual reconciliation process ensures that you receive fair compensation for the renewable energy you contribute to the grid, promoting the financial benefits of solar energy ownership.
