Posted by Dave41A on February 05, 2021 at 19:42:54 from (71.161.67.127):
In Reply to: Re: OT, Solar asst. posted by Moresmoke on February 05, 2021 at 13:19:20:
Many states regulate their power companies and fix the wholesale rate that can be charged by producers. The distributors are required to buy at this rate and can only charge a regulated amount over this for distribution. If you have solar (or wind or hydro) anything extra you produce HAS to be sold to the utility at wholesale price as you are now a "producer." The utility is not allowed to pay you more. Your state may be different.
The distribution cost is the cost of maintaining the wires, poles and right-of-way. It is pro-rated by location, based on expected maintenance costs. You won't get this back unless you maintain your own poles.
However, everything you use during the day you are selling to yourself at retail. So it's not as if you make 5 KWhr and use 10 KWhr and are buying all 10 KWHr at retail and selling back 5 KWHr at wholesale. Rather, you're reducing your net usage down to 5 KWhr, and only paying for this.
If you want to make surplus and sell it back during the day to cover your expenses at night that is a different story as the retail/wholesale/peak pricing difference kicks in.
The original post was asking about reducing costs, not being "independent," so a grid-tie to at least put a dent in the bill might help. The only way to know is to run the math yourself or build a small system as an experiment and find out.
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