A Value of Solar tariff credits every kilowatt-hour a solar system produces at a rate the utility calculates from the benefits solar provides, such as avoided energy purchases, generation capacity and grid costs. Unlike net metering, your consumption is billed separately at normal retail rates, and the solar credit is applied against the bill. Austin Energy pioneered the approach and recalculates its rate periodically. When the value-of-solar rate is close to or above your retail rate, the tariff can be generous; when it falls, savings fall with it, and the rate is generally not locked. Check the current rate and how often it is reset.
Related terms and pages
- Net metering: Billing in which solar power you export offsets power you buy, kWh for kWh, at the retail price.
- Net billing: Billing in which exported solar is credited at a rate below what you pay for power.
- Austin solar costs