Delivery Charges
The portion of your electric bill covering the cost of maintaining poles, wires, transformers, and the local distribution system that physically delivers electricity to your home.
Why It Matters
Delivery charges are typically 40-60% of your total bill and are charged regardless of where your electricity is generated. Solar reduces the supply portion of your bill but not delivery charges.
Related Topics
Related Terms
Distribution Charges
The portion of your electric bill covering the cost of the local power lines, transformers, and infrastructure that deliver electricity from substations to your home.
Transmission Charges
Fees for transporting electricity over high-voltage power lines from generation plants to local distribution substations. Usually a smaller portion of residential bills.
Supply Charges
The portion of your electric bill covering the actual cost of generating or procuring electricity — the energy commodity itself. This is the portion solar offsets directly.