After installing our new solar photovoltaic system, our electricity consumption from the electric grid may be changed, resulting in new / modified electricity consumption pattern. Also, as a result we may be subjected to a new metering regulations according to our country rules. The question is: Will there be a tariff change due to our new solar system installation? The answer for this question will be provided by your electricity retailer. Moreover, we have to get the answer for this question even before installing our solar panel power inverter, so we can weigh up the dis-advantages and advantages of the new installation before making our decision.
Actually, the answer is yes, the electricity rates can be affected as following:
You may be moved from off peak tariff to a time of use tariff "TOU". The time of use tariff is a structure in which you charged for electricity consumption based on the time of use, and the time of use is divided into 2 periods: Peak demand period which usually from 4PM to 8.5PM and off peak demand period which is represented by all other times over the day, and of course you will be charged more in peak demand period, because the kwh price will be higher. The exact charge rate for the 2 time periods can also differ from one retailer to other, but all retailers impose higher tariff in peak demand period to push customer to reduce their electricity consumption in this time period. However, while electricity rate will be higher in peak demand period, our new installed solar system will generate some electricity in that period, making some offset to our electricity consumption.
If you moved to the time of use tariff, it’s highly recommended to reduce your electricity consumption at peak demand period by changing some habits in operating your appliances and equipment, especially the air conditioner units and heaters, because they are high consumed power equipment.
In some states in USA, customer can insist on remaining on off peak tariff for some kinds of loads, but the most important is to let your solar system installer looking on your electricity bill before taking the decision of installing the solar system to make sure you will harvest the largest financial benefits you aim to, as your solar system installer will know more about different tariff and different retailer’s rates.
