Is grid tie solar worth it with states ending net metering?

[reader2580]

Yes I have. But my POCO allowed me to produce at greater than my annual usage. So economies of scale kick in. I produce at $.03 per kWh and my POCO reimburses me at $.065 per kWh. That allows me to have a 7.5 year payback on a 17.28 kW system.

If net metering is dissolved then residential wholesale producers should be allowed to produce at above personal consumption amounts. Within reason and within their service capabilities. Let the market and competition work out the details.

I'm curious how you determine cost per KWh? There is no fuel and no real cost after the initial capital cost. It would seem like cost per KWh could vary widely depending on how many years you spread the capital cost over. Are you willing to share what your system cost?

Are power companies going to just allow residential producers to produce unlimited power at wholesale rates without grid upgrades? Hawaii is running into serious issues due to solar producing so much power that the grid can't handle it during times when solar production is high and consumption is not as high. Granted, Hawaii is unique due to the small grid they have.

[DanS26]

I'm curious how you determine cost per KWh? There is no fuel and no real cost after the initial capital cost. It would seem like cost per KWh could vary widely depending on how many years you spread the capital cost over. Are you willing to share what your system cost?

Are power companies going to just allow residential producers to produce unlimited power at wholesale rates without grid upgrades? Hawaii is running into serious issues due to solar producing so much power that the grid can't handle it during times when solar production is high and consumption is not as high. Granted, Hawaii is unique due to the small grid they have.

This thread pretty much explains my system and how my cost of production was calculated.

https://www.solarpaneltalk.com/forum/solar-panels-for-home/solar-panels-for-your-home/340122-this-is-why-an-ets-system-works-for-me

My net cost to build my 17.28 kW system was $1.00 per watt. It was DIY so no labor in that number......lots of front end work sourcing panels, inverters and parts. So yes it can be done.

[reader2580]

I talked to my power company again about net metering. They allow up to 40KW of solar for net metering. They will pay 11.8 cents per KWH no matter how much you produce and will pay cash for any excess over consumption. They charge a monthly solar access fee of $3.74 per KW of installed solar over 3.5 KW up to 10 KW (Basically capped at $25 a month max.) I need to clarify if payments for excess production will cover the basic service fee and the solar access fee.

[J.P.M.]

I talked to my power company again about net metering. They allow up to 40KW of solar for net metering. They will pay 11.8 cents per KWH no matter how much you produce and will pay cash for any excess over consumption. They charge a monthly solar access fee of $3.74 per KW of installed solar over 3.5 KW up to 10 KW (Basically capped at $25 a month max.) I need to clarify if payments for excess production will cover the basic service fee and the solar access fee.

I'm a bit confused.

1.) Will the POCO pay $0.118/kWh for all production, or just production up to your billing period or other period usage ?

2.) How much will the POCO pay per kWh for production in excess of your usage ? It may or may not be the same as your per kWh charge.

I'd guess that if payments for access can be offset by overproduction (not always the case), it would be a rather straightforward calculation to estimate overproduction required to offset those charges.

[reader2580]

I'm a bit confused.

1.) Will the POCO pay $0.118/kWh for all production, or just production up to your billing period or other period usage ?

2.) How much will the POCO pay per kWh for production in excess of your usage ? It may or may not be the same as your per kWh charge.

They will pay $0.118/KWh for all production in excess of my usage as long as array is not larger than 40 KW.. I specifically asked that. Any production in excess of my annual usage will be paid out in cash at end of year.

[SunEagle]

They will pay $0.118/KWh for all production in excess of my usage as long as array is not larger than 40 KW.. I specifically asked that. Any production in excess of my annual usage will be paid out in cash at end of year.

A 40kw system is huge for a home. Are you sure that number is not for commercial customers?

[J.P.M.]

They will pay $0.118/KWh for all production in excess of my usage as long as array is not larger than 40 KW.. I specifically asked that. Any production in excess of my annual usage will be paid out in cash at end of year.

Thank you.

So, if you generate 100 kWh in excess of usage, and have a 10 kW array, they'll pay you $11.18 ? Pretty generous. It might pay to get into the generation business if there's some assurance of that gravy train lasting for 5+ years or so.

[reader2580]

So, if you generate 100 kWh in excess of usage, and have a 10 kW array, they'll pay you $11.18 ? Pretty generous. It might pay to get into the generation business if there's some assurance of that gravy train lasting for 5+ years or so.

That would be correct. If you can size your array to be within 100 KWh of your actual usage you're doing pretty good.

It is a better deal then getting paid $0.065 per KWh for production and then paying $0.128 per KWh for power used.

[J.P.M.]

That would be correct. If you can size your array to be within 100 KWh of your actual usage you're doing pretty good.

It is a better deal then getting paid $0.065 per KWh for production and then paying $0.128 per KWh for power used.

Understood. The 100 kWh was simply a number. Could have just as well been 1,000 or 10,000.

[reader2580]

Understood. The 100 kWh was simply a number. Could have just as well been 1,000 or 10,000.

I was thinking you thought that 11.8 cents per KWh is not a good return. It looks like I would have to produce about 7,500 KWh annually to completely cover my electric bill including solar access fee and basic service fee. I suspect I would get 12.8 cents in the summer as that is the summer rate for residential customers.

[J.P.M.]

I was thinking you thought that 11.8 cents per KWh is not a good return. It looks like I would have to produce about 7,500 KWh annually to completely cover my electric bill including solar access fee and basic service fee. I suspect I would get 12.8 cents in the summer as that is the summer rate for residential customers.

Understood. Without knowing the particulars of your situation, I can't proffer an opinion as to whether it's a good price or not. Besides, you're the only one who's opinion counts in that regard. Mine matters naught.

[acmcool]

The first solar company I talked to highly recommends optimizers. It could be that they want to sell me $800 more in product, I do not have shading issues from structures or trees, but I have to deal with snow,

Hey I am in MN. Completed 14KW DIY install last year.Let me know if you need any help...