Solar Savings Rate
The effective per-kWh value of solar electricity to the homeowner, accounting for self-consumption at retail rates, exports at lower rates, demand charge reduction, and avoided rate escalation.
Why It Matters
Your solar savings rate is almost always different from your utility average rate. Self-consumed solar is worth retail; exported solar may be worth much less.
Related Tools
Related Terms
Self-Consumption
The percentage of solar electricity that is consumed on-site by the household rather than exported to the grid. Without a battery: typically 25-40%. With a battery: 60-90%.
Export Rate
The per-kWh credit received for electricity exported from a home solar system to the grid. May equal retail rate (net metering), avoided cost (net billing), or a time-varying amount.
Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.