I recently received a quote from Baker Energy for a solar and battery system in Southern California that offers a 155% consumption offset. This seemed excessive to me, so I asked for another estimate with a 130% offset. However, their software indicated that the 155% option would only save me about $97 annually. Considering the additional cost of $3,600 after rebates, it seems like it'd take over 30 years to break even. Even with potential additions to my home, like a pool or an extra room, I doubt I'd reach the 155% offset. Am I missing something, or is that just overly ambitious?
4 Answers
I can't fully relate to your situation, but I can offer a possible explanation from my own experience in Texas. Here, we pay around $0.10/kWh for surplus electricity, but we also incur an extra $0.04/kWh charge for using the electrical lines. So effectively, my rate can get close to $0.14/kWh. In terms of offsets, I'd have to produce about 140% of my usage to break even, so a 160% offset can actually make sense in my scenario.
It sounds like you might need to provide more details about your situation. What are your electric rates, and are you using a time of use plan? Also, what's the size of your system and how much battery storage are you considering? In California, over-provisioning is pretty standard to ensure you have enough energy during the winter months without relying on the grid.
Just to share my experience, my solar-only system was initially quoted for a 115% offset based on a year’s worth of usage. Fast forward a year, and I'm only seeing about 90% offset. So, it’s not surprising if your projections are a bit optimistic. A higher modeled offset can be useful, especially with battery energy storage systems!
Interesting! Do you think the drop in your percentage was due to increased consumption on your end, or are these companies just generally optimistic in their projections?
Gotcha! Just so you know, I'm on NEM 3.0 and SoCal Edison’s TOU Prime plan, with rates like $0.53 during peak times and $0.24 off-peak. My systems are about 7.83 kW (155%) and another at 6.5 kW (135%), both with 20 kWh batteries.