3 Home Solar "Offset" Examples

3-Home-Solar-Offset-Examples,

The 3 Home Solar Offset examples below are directly connected to the correct size of a Home Solar System. The power company bills you based on kilowatt-hours used during each month of the year. The term “Offset” is the amount of power produced from a home solar system that replaces the power previously being purchased from a utility. Home solar systems produce power more on a straight line whereas our consumption is more up and down. Because solar systems produce power in a straight line solar systems are designed to produce a specific amount of power (kilowatts) within a plus or minus range, to offset consumption

“Offset” Only Applies To Grid-Tie Home Solar Systems

“Offset” only applies to Grid-Tie Home Solar Systems. A “Grid-Tie” system stays connected to the power company’s grid. Grid-Tie is great for the homeowner because you are trading kilowatts hours produced for kilowatt-hours consumed. The key is you don’t have to worry about a system producing enough power because you’re still connected to the power company. The benefit of Grid-Tie Solar is it eliminates the cost of storing the power produced from a home solar system. Solar system battery storage is expensive and eliminating it cuts the cost of home solar quite dramatically.

Home Solar "Offset" Is Trading Kilowatt Hours Produced for Kilowatt Hours Consumed

“Home Solar offset” is the amount of electricity produced by a solar system to trade the power company for the amount of electricity a home actually uses during that same period of time. The homeowner either pays for additional power the solar system did not produce, or receives a credit for excess power produced. The excess power is credited at a wholesale value not retail, averaging about .04 cents per kilowatt, but retails for an average of .13 cents per kilowatt. It is not profitable to oversize a home solar system because a bigger system costs more, but the extra power produced does not pay any dividends.

To get a keen understanding of how Offset works you need to understand how to determine the ideal size home solar system. Solar systems are designed to create a set amount of electricity for a 365 day time frame. Home solar systems are designed based on average daily kilowatt consumption.

Offset Example 1.

Home Solar System Example Size

10K System = 10000 Kilowatts  Per Year

Your daily average of kilowatts hours consumed is available on your power bill statement.

Solar System Daily Average Kilowatts Produced

10000 Divided By 365 = 27.4 Kilowatts Produced Per day

All solar systems vary in production because of geographical location, Direction solar panels are facing, amount of peak sunlight hours, and other factors

Daily Average of Power Consumption

30 Kilowatt Hours

10000 Divided By 365 = 27.4 Kilowatts Produced Per day

All solar systems vary in production because of geographical location, Direction solar panels are facing, amount of peak sunlight hours, and other factors

Offset Daily Power Consumption With Solar Production

27 Kilowatt Hours Offset

After Offsetting 27 Kilowatts produced per day 

The home will be billed by the power company for an average of 3 Kilowatts per day.

To achieve 90% offset a solar system needs to produce 27 kilowatts per day based on 30 Kilowatts per day of consumption.

Offset Example 2.

Home Solar System Example Size

10K System = 10000 Kilowatts  Per Year

Your daily average of kilowatts hours consumed is available on your power bill statement.

Solar System Daily Average Kilowatts Produced

10000 Divided By 365 = 27.4 Kilowatts Produced Per day

All solar systems vary in production because of geographical location, Direction solar panels are facing, amount of peak sunlight hours, and other factors

Daily Average of Power Consumption

25 Kilowatt Hours

In this scenario, a 10K system is too big. This is a good example of how you can save a lot of money because you can use a 8.5K system. An 8.5K system will average 23 kilowatt hours a day right in that 90% coverage of 25 kilowatt hours consumed.

1.5K difference in solar system size saves a minimum of $4200, probably closer to $5000.

 

Offset Daily Power Consumption With Solar Production

27 Kilowatt Hours Offset

A 10K system producing 27 kilowatt hours a day will have at least 6 months of producing more power than needed. The power company will credit your account on average .04 cents per kilowatt not the retail price on average of .13 Per kilowatt that you receive by “Offsetting”.

Offset Example 3.

Home Solar System Example Size

10K System = 10000 Kilowatts  Per Year

Your daily average of kilowatts hours consumed is available on your power bill statement.

Solar System Daily Average Kilowatts Produced

10000 Divided By 365 = 27.4 Kilowatts Produced Per day

All solar systems vary in production because of geographical location, Direction solar panels are facing, amount of peak sunlight hours, and other factors

Daily Average of Consumption

27 Kilowatt Hours

This percentage of offset may appear ideal for a 10K system that produces an average of 27 kilowatts per day. But it’s oversized because far too many months will overproduce and the power company isn’t paying you enough. You are better off getting a smaller system that you will trade kilowatt for kilowatt at full retail price value.

Offset Daily Power Consumption With Solar Production

27 Kilowatt Hours Offset

You are better off getting a smaller system that you trade kilowatt for kilowatt at full retail price.

The First scenario is the ideal scenario because the power company is giving you credit for the full price they charge when offsetting power produced by a home solar system.

*When a home solar system produces 90% of the power consumed the power company will bill you for the 10% difference. That 10% difference will be billed at the lowest tier rate of the power company. The first thousand kilowatts consumed and billed at the lowest tier rate, the second tier does.

GoGreenSolar calculator makes it easy to size a solar array for your home. Answer  a couple of questions to estimate how many solar panels you’ll need for your home, based on your location and utility consumption. Results may vary.