How Does Your Electricity Supplier Credit Your Energy to Their Grid?

by John

You need to be careful when considering installing solar energy panels to your home and are calculating the cost benefit analysis of the project.

I discovered how important this is when we received a revised electricity bill recently. We were required to repay approximately $700 since the installation of our solar panels.

It was a supplier error in calculating our charge. The cause of the error appeared to be that we had been credited for electricity used from the grid as though our solar cells had generated it rather than being drawn from the grid. Confused? So was I! However, the mistake was genuine and we paid the bill.

The lesson that we learned and pass on is that you need to understand the basis of the supply of your electricity generated to the grid and not only the rate of reimbursement.

Net Amount Generated

In our case the basis of the supply of electricity to the grid is net of the amount generated during the hours of operation (net is the amount generated less the amount used).

When the panels are non-operational at night we buy back the electricity at the going rate for normal customers at the normal rate. We do not have a credit of the net amount generated during the day to call on.

What is the basis of your contribution of electricity to your grid? It is an important question that you need to know the answer to before you start your calculations.

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