Over the last decade I have seen various incentive structures implemented around the world to support the integration of PV as a mainstream energy source. Germany quickly jumped into the forefront with their successful Feed in Tariff (FiT) structure which was copied with various success in several other global markets. However, for those of us developing projects in the U.S. and most notably California we do not have the simplicity of a FiT to calculate the revenue generated from our proposed PV projects.
Instead a complex calculation must be performed to determine the Solar Savings Rate (SSR).
The calculation takes into account:
- Energy charges
- Demand charges
- Time of use rates
- Hourly PV production
- Demand profiles
- Optional rate tariffs.
Electric Rate Tariff Analysis for Solar Projects
The importance of this calculation can not be understated and facility owners are often unaware of the need or importance of the calculation as they explore the financial returns of a PV project. I have seen countless financial pro-forma’s that did not properly calculate the SSR resulting in understated revenue projections by as much as 30%. VeriSol has a proprietary method (created from years of experience) of calculating a PV systems SSR. Verisol has been hired as an independent 3rd party to validate PV system production and energy savings for a variety of clients.