# Utilities
Utility rate configuration is the foundation of accurate solar quotes. Proper setup ensures your production estimates, savings calculations, and ROI projections reflect real-world economics.
## Overview
Powerlily supports:
- **Time-of-Use (TOU) Rates** - Multiple rate periods by hour, day, and season
- **Tiered Rate Structures** - Progressive pricing based on consumption thresholds
- **Demand Charges** - Peak demand billing for commercial installations
- **Dual Utility Comparison** - Compare pre-solar vs post-solar utilities
- **Consumption Profiles** - Weekday/weekend usage patterns for TOU accuracy
- **Monthly Rates** - Seasonal rate configuration
- **Net Metering & Credit Compensation** - Various metering programs
- **30-Year Rate Escalation** - Rate inflation modeling
**Key Principle:** Each quote locks in its utility configuration at creation. Changing a utility doesn't affect existing quotes.
## Creating Utilities
1. Go to **Settings** → **Utilities**
2. Click **"New Utility"**
3. Configure parameters
4. Save and use in quotes
### Basic Information
**Name:** Utility company name shown to customers
- Examples: "Pacific Gas & Electric (PG&E)", "Con Edison - Residential"
- Include rate plan type if relevant (TOU, tiered, etc.)
**Description:** Optional notes about service area, rate plan specifics, programs
## Rate Configuration
### Import Rate
**Cost of electricity FROM utility**
- Price customer pays for grid power (per kWh)
- Foundation of savings calculation
- Find on customer bills or tariff sheets
- Format: Decimal (e.g., 0.28 for $0.28/kWh)
- Typical range: $0.10-$0.40/kWh
### Export Rate
**Value of electricity TO utility**
- Price utility pays for solar exports
- Net metering credit value
- Common structures:
- **1:1 Net Metering:** Export = Import rate (best for customers)
- **Reduced Export:** Export < Import (wholesale/avoided cost)
- **No Compensation:** Export = $0
- Format: Decimal, can be same as or less than import
### Monthly Rates
**Different rates each month for seasonal variation**
Toggle "Use Monthly Import and Export Rates" to enable:
- Enter import/export rate for each month (Jan-Dec)
- System uses correct rate each month
- More accurate than single annual rate
### Minimum Monthly Fee
**Fixed grid connection charge**
- Charged even with zero usage
- Can't be offset by solar
- Typical: $0-$40/month
- Transparent in customer quotes
## Metering Type
### Net Metering
**Most common residential program**
- Production offsets consumption
- Credits accumulate for surplus
- Credits used in later months
- Annual or monthly settlement
### Net Feed-in Tariff
**Instant export compensation**
- Production offsets consumption
- Surplus sold immediately each month
- No credit banking
- Can't save summer credits for winter
### Feed-in Tariff
**Production-based payment**
- All production sold to utility
- Customer still buys all consumption
- Two separate transactions
- Investment/farm model
## Time-of-Use (TOU) Rate Periods
TOU rates charge different prices based on time of day, day of week, and season.
### Creating Rate Periods
1. **Settings** → **Utilities** → Select utility → **Add Rate Period**
2. Configure:
- **Name:** e.g., "Summer Peak"
- **Import/Export Rate:** Price per kWh
- **Start/End Hour:** 24-hour format (16 = 4 PM)
- **Days of Week:** 0=Sunday through 6=Saturday
- **Months:** 1=January through 12=December
**Example - California NEM 3.0 Summer Peak:**
- Import: $0.51, Export: $0.08
- Hours: 16:00-21:00 (4-9 PM)
- Days: Weekdays [1,2,3,4,5]
- Months: [6,7,8,9]
### Per-Quote Customization
Quotes can override utility rate periods:
- "Customize Rate Periods for This Quote" button
- Changes only affect that quote
- Useful for grandfathered plans or custom agreements
### How It Works
With hourly PVWatts data and TOU periods:
1. System matches each hour to applicable rate period
2. Applies consumption profile (weekday/weekend pattern)
3. Calculates net import/export with correct rate
4. Aggregates to monthly/yearly totals
**Without hourly data:** Falls back to monthly calculation
## Tiered Rate Structures
Progressive pricing based on consumption. As you exceed thresholds, the rate changes.
**Example:**
- Tier 1: First 500 kWh at $0.15/kWh
- Tier 2: After 500 kWh at $0.22/kWh
- Tier 3: After 1000 kWh at $0.30/kWh
### Configuration
- Set per month (supports seasonal tiers)
- Each tier: Threshold ("After X kWh") + Rate
- Solar offsets highest-tier consumption first
### Per-Quote Customization
Like rate periods, tiers can be customized per quote for special customer agreements.
### Combined with TOU
System handles both:
1. Check for TOU rate period match
2. If TOU applies: use TOU rate
3. If no TOU: use tiered rate based on cumulative monthly consumption
## Demand Charges
**For commercial installations**
Demand charges bill based on highest power draw (kW) in a period, not just energy consumed (kWh).
**Example:**
- Energy charge: $0.12/kWh × 10,000 kWh = $1,200
- Demand charge: $15/kW × 50 kW peak = $750
- Total: $1,950
### Configuration
Set at quote utility level:
- **Enable Demand Charges:** Toggle on/off
- **Demand Rate:** Dollars per kW (e.g., 15.50)
### How It Works
Using hourly data, system calculates:
1. Baseline peak demand (without solar)
2. Peak demand with solar (production reduces net demand)
3. Demand savings = reduction × demand rate
4. Added to energy savings
**Best for:** Commercial customers with midday peak demand that aligns with solar production
## Dual Utility Comparison
**Compare pre-solar vs post-solar utilities**
For customers switching utilities when going solar (e.g., Community Choice Aggregation, deregulated markets).
### Configuration
On quote:
- **Post-Solar Utility (Primary):** Utility customer will use WITH solar
- **Pre-Solar Utility (Optional):** Current utility before solar
### What Gets Calculated
- **Pre-Solar Costs:** 30-year costs without solar, on pre-solar utility
- **Post-Solar Baseline:** 30-year costs without solar, on post-solar utility
- **Post-Solar With System:** 30-year costs with solar, on post-solar utility
**Quote shows savings from utility switch AND solar production separately**
## Consumption Profiles
Defines WHEN customers use electricity (hourly distribution).
### Available Profiles
- **Flat:** Equal usage all hours (default)
- **Residential Typical:** Morning/evening peaks, low midday
- **Other pre-configured patterns** for various customer types
### Usage
Select weekday and weekend profiles on each quote. Critical for accurate TOU modeling.
**Why it matters:** Solar produces midday, but customers often consume evening. TOU rates charge premium evening hours. Accurate profiles show real bill impact.
## Credit Compensation
**How surplus kWh credits are handled**
### Monthly
- Surplus sold at end of each month
- Credits don't carry forward
- Good for flat production profiles
### Yearly
- Credits roll month-to-month
- Annual settlement at renewal month
- Bank summer production for winter
- Standard for net metering
### Indefinitely
- Credits never expire
- Roll forward forever
- Rare legacy programs
## Annual kWh Credit Cap
**Limits annual surplus credits**
When enabled:
- Year-end credits capped at annual consumption
- Can't export more than you import (net annual)
- Excess production above cap = $0 value
**Enable if:** Utility doesn't pay for net annual exports
## Annual Escalation Rate
**Rate increase over time**
- Annual percentage increase (e.g., 3%)
- Applied to import AND export rates
- Models utility rate inflation
- Critical for 30-year projections
**Typical:** 3-4% annual
**Conservative approach recommended** - Don't oversell with high escalation
## Best Practices
### Rate Accuracy
- Check current tariff sheets
- Confirm with utility website
- Review customer bill
- Update regularly
### Conservative Modeling
- Use 3-4% escalation
- Realistic export rates
- Account for all fees
- Under-promise, over-deliver
### Documentation
- Rate schedule sources
- Effective dates
- Program documents
## Common Configurations
### California PG&E NEM 3.0
- TOU rates with 4-9 PM peak ($0.51 import, $0.08 export)
- Yearly credit compensation
- Credit cap enabled
- 4% escalation
- Consumption profiles essential
### New York Con Edison
- Flat rates ($0.19/kWh both ways)
- 1:1 net metering
- Credits roll indefinitely
- Simple configuration
### Texas (Deregulated)
- Minimal export compensation ($0.03/kWh)
- Monthly settlement
- Self-consumption critical
- Consider dual utility for switchers
### Commercial with Demand Charges
- TOU + Demand charges ($15/kW)
- Peak shaving potential
- Battery often justified
- Requires peak timing analysis
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**Related:** [[Quotes/Selecting Imagery|Creating Quotes]] | [[Incentives/Incentives|Incentives]] | [[kWh|Understanding kWh]]