# 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. ## Why Utilities Matter Utility configuration directly affects: - **Savings calculations** - Import/export rate differential - **Payback period** - How quickly system pays for itself - **ROI projections** - 30-year financial modeling - **Credit tracking** - Net metering mechanics - **Value proposition** - Customer's true savings **Get this wrong, and your quotes will be inaccurate.** ## Overview Powerlily allows you to: - Configure unlimited utility companies - Set monthly or annual rates - Define metering programs (Net Metering, Feed-in Tariff, etc.) - Model rate escalation over 30 years - Handle monthly fees and credit caps - Use different utilities for different quotes **Key Principle:** Each quote locks in its utility configuration at creation. Changing a utility record doesn't affect existing quotes. ## Creating Utilities ### Navigation 1. Go to **Settings** → **Utilities** 2. Click **"New Utility"** 3. Configure all parameters 4. Save and use in quotes ### Basic Information #### Name **Utility company name** - Clear identification - Shown to customers - Used in quote selection **Examples:** - "Pacific Gas & Electric (PG&E)" - "Southern California Edison" - "Con Edison - Residential" - "National Grid - Time of Use" **Best Practices:** - Include service territory if relevant - Note rate plan type (TOU, tiered, etc.) - Be specific for customer clarity #### Description **Optional details** - Service area notes - Rate plan specifics - Special programs - Internal reference **Examples:** - "Standard residential rate schedule E-1" - "Commercial rate with demand charges" - "Time-of-use plan with winter/summer rates" ## Rate Configuration ### Single Rate vs Monthly Rates **Two configuration modes:** #### Simple: Single Annual Rate **One rate for entire year** ✅ **When to Use:** - Utility has flat rates year-round - Simple rate structures - Quick setup - Most residential customers **How It Works:** - Enter one import rate - Enter one export rate - Applied every month - No seasonal variation **Example:** - Import: $0.28/kWh - Export: $0.10/kWh - Same all year #### Advanced: Monthly Rates **Different rate each month** ✅ **When to Use:** - Seasonal rate variations - Time-of-use programs - Tiered summer pricing - Accurate modeling needed **How It Works:** - Enter import rate for each month (Jan-Dec) - Enter export rate for each month (Jan-Dec) - System uses correct rate each month - More accurate projections **Example:** - **Summer (June-Sept):** $0.35/kWh import, $0.12/kWh export - **Winter (Oct-May):** $0.24/kWh import, $0.08/kWh export **Toggle:** Check "Use Monthly Import and Export Rates" to enable ### Import Rate **Cost of electricity FROM utility** **What It Means:** - Price customer pays for grid power - Per kilowatt-hour (kWh) - The rate you're helping them avoid - Foundation of savings calculation **Where to Find:** - Customer's utility bill - Utility company website - Rate schedules (tariff sheets) - Regulatory filings **Format:** - Dollars per kWh - Example: $0.28/kWh - Enter as decimal: 0.28 **Important:** - Use blended rate if tiered - Include delivery charges - Exclude fixed fees (use Min Fee instead) - Average if time-of-use **Typical Ranges:** - Low: $0.10 - $0.15/kWh - Average: $0.15 - $0.25/kWh - High: $0.25 - $0.40/kWh - Very high (CA, HI, etc.): $0.35+/kWh ### Export Rate **Value of electricity TO utility** **What It Means:** - Price utility pays for solar exports - What customer earns for excess generation - Net metering credit value - Varies by program **Common Structures:** **1:1 Net Metering (Full Retail):** - Export rate = Import rate - Example: $0.28 import = $0.28 export - Best for customers - Common in many states **Reduced Export Rate:** - Export rate < Import rate - Example: $0.28 import, $0.10 export - Wholesale or avoided cost - Less favorable **No Compensation:** - Export rate = $0 - No credit for exports - Self-consumption only - Rare residential **Format:** - Dollars per kWh - Enter as decimal - Can be same as or less than import ### Minimum Monthly Fee **Fixed grid connection charge** **What It Is:** - Unavoidable monthly cost - Charged even with zero usage - Grid access/infrastructure fee - Can't be offset by solar **Why It Matters:** - Affects "true" savings - Customer pays this regardless - Should be transparent in quotes **Typical Values:** - $0 (included in rates) - $5 - $15 (common) - $20 - $40 (some utilities) **Quote Display:** - If set >$0, clearly shown - Labeled as "Grid Connection Fee" - Not confusing to customer - Part of total cost model **Setting to $0:** - If fee included in per-kWh rate - If you want to exclude it - Simpler customer presentation ## Metering Type **Critical setting that defines how solar economics work** ### Net Metering **Most common residential program** **How It Works:** 1. Production offsets consumption 2. Meter "spins backwards" when exporting 3. Credits accumulate for surplus 4. Credits used in later months 5. Annual or monthly settlement **Financial Model:** - **Savings** = (Consumption offset × Import rate) + (Exports × Export rate) - Avoids imports at retail rate - Compensated for exports - Maximizes value **Bill Impact:** - Lower or eliminate bill - Pay minimum fee if applicable - Credits carry forward - Annual true-up **Best For:** - Residential installations - Consumption matches production - Full retail credit - Standard solar economics **Quote Calculations:** - Shows consumption reduction - Displays export value - Tracks credit accumulation - Models true-up events ### Net Feed-in Tariff **Instant export compensation** **How It Works:** 1. Production offsets consumption 2. Surplus sold immediately 3. No credit accumulation 4. Monthly settlement 5. Can't carry forward **Financial Model:** - **Savings** = (Consumption offset × Import rate) + (Monthly exports × Export rate) - Immediate export payment - No credit rollover - Month-by-month **Differences from Net Metering:** - No credit banking - Exports paid monthly - Can't save summer credits for winter - Less favorable if seasonal mismatch **Best For:** - Regions without net metering - Consistent year-round production - When export rate is fair **Quote Calculations:** - Monthly export compensation - No credit cap concerns - Surplus can't be capped ### Feed-in Tariff **Production-based payment** **How It Works:** 1. All production sold to utility 2. Customer still buys all consumption 3. Two separate transactions 4. No offset, pure payment **Financial Model:** - **Revenue** = (Total production × Export rate) - Doesn't offset consumption - Pure generation income - Customer still has full electric bill **Bill Impact:** - Electric bill unchanged - Receive production payment - Two separate bills - Investment return model **Best For:** - High feed-in tariff rates - Investment/farm situations - Separate from consumption - Pure generation assets **Quote Calculations:** - Shows production revenue only - Doesn't show consumption offset - Different value proposition - Income vs savings model ## Credit Compensation **How surplus kWh credits are handled** ### Monthly Compensation **Settle every month** **How It Works:** - End of each month: surplus sold - Credits don't carry forward - Paid at export rate - Fresh start next month **Financial Impact:** - Monthly export income - Can't save summer for winter - Predictable monthly value - Good for consistent production **Best For:** - Net Feed-in Tariff programs - Flat production profiles - When can't bank credits **Quote Calculations:** - Monthly export value added to savings - No credit accumulation - Even monthly benefit ### Yearly Compensation **Settle annually** **How It Works:** - Credits roll month-to-month - Annual settlement (true-up) - Surplus sold at year-end - Specified renewal month **Financial Impact:** - Bank summer production - Use credits in winter - Annual surplus payment - Maximizes credit value **Best For:** - Net metering programs - Seasonal production variance - Summer surplus, winter deficit - Standard solar programs **Renewal Month:** - When annual true-up occurs - Credits reset after this month - Choose customer's true-up month - Often anniversary of interconnection **Example:** - **Renewal Month:** December - **January:** Start fresh, 0 credits - **June:** Build up 500 kWh credits - **December:** Use credits + sell surplus - **January (next year):** Reset to 0 **Quote Calculations:** - Tracks credit accumulation - Models annual true-up - Shows yearly surplus compensation - Accurate payback modeling ### Indefinitely **Never settle (rare)** **How It Works:** - Credits never expire - Roll forward forever - No true-up - Accumulate indefinitely **Financial Impact:** - Credits never lost - Can build large bank - No compensation for surplus - Max savings potential **Best For:** - Legacy net metering - Grandfathered programs - Very rare situations **Quote Calculations:** - No surplus compensation - Credits never capped (unless credit cap enabled) - Conservative approach ## Annual kWh Credit Cap **Limits annual surplus credits** ### What It Does **When Enabled:** - Year-end credits capped at annual consumption - Can't export more than you import (net annual) - Excess production above cap = $0 value - Prevents over-crediting **Example:** - **Annual Consumption:** 12,000 kWh - **Annual Production:** 14,000 kWh - **Net Export:** 2,000 kWh - **With Cap:** 2,000 kWh = $0 value (capped at 0 net) - **Without Cap:** 2,000 kWh × export rate = compensated ### When to Enable ✅ **Enable If:** - Utility doesn't pay for net annual exports - Credits capped at consumption - Can't be net exporter - Regulations require it ❌ **Disable If:** - Utility pays for surplus - No annual net cap - Can export more than import - Standard net metering ### Impact on Quotes **Financial Modeling:** - Systems >100% offset: reduced value - Payback period lengthened - ROI adjusted downward - Prevents oversizing **System Sizing:** - Encourages 90-100% offset - Discourages oversizing - Accurate economics - Right-size system **⚠️ Warning:** With credit cap enabled, quotes estimating >100% consumption offset will show longer payback periods. This accurately models that excess production has $0 value. ## Annual Escalation Rate **Rate increase over time** ### What It Is **Future rate growth:** - Annual percentage increase - Applied to import AND export rates - Models utility rate inflation - Critical for 30-year projections ### Why It Matters **Long-term Value:** - Solar production has fixed cost - Utility rates increase over time - Savings grow each year - Major value proposition **Example:** - **Year 1:** $0.28/kWh - **Year 10** (3% escalation): $0.36/kWh - **Year 20** (3% escalation): $0.47/kWh - **Year 30** (3% escalation): $0.62/kWh **Impact:** - Higher escalation = better solar ROI - Lower escalation = conservative estimate - Dramatic effect on lifetime savings ### Setting Escalation Rate **Conservative Approach:** - 2-3% annual - Historical utility average - Defensible - Trustworthy **Moderate Approach:** - 3-5% annual - Recent trends - Regional specifics - Common practice **Aggressive Approach:** - 5%+ annual - High rate areas - Trend acceleration - Risk of overselling **Format:** - Select from dropdown - 0% to 9.9% in 0.1% increments - Stored as multiplier (e.g., 1.03 for 3%) **⚠️ Important:** **Don't oversell with high escalation rates!** - Exaggerated escalation = unrealistic savings - Customer disappointment if rates don't rise - Credibility damage - Regulatory scrutiny **Best Practice:** - Research regional rate history - Use 3-4% as baseline - Adjust for local conditions - Document reasoning ### Modeling in Quotes **Year-by-Year Calculation:** - Year 1: Base rate - Year 2: Base × (1 + escalation) - Year 3: Year 2 × (1 + escalation) - Continues 30 years **Affects:** - Annual savings projections - Lifetime savings total - Payback period - ROI percentage ## Utility Management ### Creating Multiple Utilities **Why Multiple:** - Different service territories - Multiple rate plans - Residential vs commercial - Testing scenarios **Organization:** - Clear naming - Rate plan specifics - Regular updates - Archive old rates ### Editing Utilities **When to Edit:** - Rate changes announced - Program updates - Correction needed - New information **Impact:** - NEW quotes use updated rates - Existing quotes UNCHANGED - Historical accuracy preserved ### Using in Quotes **Quote Creation:** 1. Select utility from dropdown 2. Rates automatically applied 3. Calculations use utility parameters 4. Customer sees utility name **Quote Lock:** - Utility config copied to quote - Future utility changes don't affect quote - Historical accuracy - Version control ## Best Practices ### Rate Accuracy **Always Verify:** - Check current tariff sheets - Confirm with utility website - Review customer bill - Update regularly **Don't Guess:** - Wrong rates = wrong economics - Customer trust damaged - Potential legal issues - Professional liability ### Program Selection **Match Reality:** - Use customer's actual program - Confirm metering type - Verify export compensation - Document source ### Conservative Modeling **Underpromise, Overdeliver:** - Conservative escalation (3-4%) - Realistic export rates - Account for fees - Honest projections ### Regular Updates **Stay Current:** - Review utilities quarterly - Update when rates change - Monitor policy changes - Maintain accuracy ### Documentation **Keep Records:** - Rate schedule sources - Effective dates - Program documents - Utility contacts ## Common Configurations ### California PG&E (Net Metering 3.0) - **Import:** $0.35/kWh (average) - **Export:** $0.08/kWh (avoided cost) - **Metering:** Net Metering - **Credit:** Yearly - **Min Fee:** $10/month - **Escalation:** 4% - **Cap:** Enabled ### New York Con Edison - **Import:** $0.19/kWh - **Export:** $0.19/kWh (1:1 retail) - **Metering:** Net Metering - **Credit:** Indefinitely - **Min Fee:** $18/month - **Escalation:** 3% - **Cap:** Disabled ### Texas (No Net Metering) - **Import:** $0.12/kWh - **Export:** $0.03/kWh (wholesale) - **Metering:** Net Feed-in Tariff - **Credit:** Monthly - **Min Fee:** $0 - **Escalation:** 2.5% - **Cap:** N/A ### Hawaii HECO - **Import:** $0.42/kWh - **Export:** $0.10/kWh - **Metering:** Net Metering - **Credit:** Monthly - **Min Fee:** $25/month - **Escalation:** 3% - **Cap:** Enabled ## Troubleshooting ### Savings Look Too High - Check escalation rate (too high?) - Verify import rate accuracy - Confirm export rate correct - Review credit compensation ### Payback Too Long with >100% System - Enable credit cap if applicable - System oversized for program - Reduce system size - Adjust customer expectations ### Monthly vs Annual Rates Confusion - Start with simple single rate - Add monthly rates only if needed - Test calculations - Verify each month --- **Related:** [[Quotes/Selecting Imagery|Creating Quotes]] | [[Incentives/Incentives|Incentives]] | [[kWh|Understanding kWh]]