How It Works

Every commercial system and installation is different. The size of your commercial system will be determined by roof, canopy or land space that can be used for panels, your electricity needs and your financial goals. When a business adds solar, it enters into a “Net Energy Meter” agreement with the utility company. This agreement states that the utility will credit the customer at the same rate it would charge the customer for a given kWh. Business owners can save when using commercial solar and battery storage solutions. Watch the video to see how it works!

Explanation of Net Energy Metering/Demand Charges
If a business does not have solar, it buys every single kilowatt hour of electricity from the utility company. The utility company charges its commercial customers in three buckets.
  • Bucket 1 – A fixed monthly fee, the amount of which depends on the rate tariff you are on. This fee remains even after you go solar.
  • Bucket 2 – Time of use charges. Commercial customers are charged based on the time of year and time of day that a given kWh is consumed. Rates are higher in summer vs. winter, and higher in the afternoons/evening than in the middle of the night.
  • Bucket 3 – Demand charges. The utility actually tracks usage in 15-minute increments and the demand charge is based on the highest peak in a given month or quarter. The demand charge is often half of a commercial customer’s bill and sometimes even more!
Net meters and inverters can sell power you do not use back to the grid