TEP net metering, not confusing at all...

When I started looking at getting solar in Tucson, one of the major objections I kept hearing was something along the lines of TEP doesn’t do net metering or there is no net metering in Tucson.

 

Net metering is, admittedly, very confusing for a couple of reasons not the least of which is the legal-sounding kind of language in the documents that discuss it.

 

First, the document from TEP (the source)- 

https://docs.tep.com/wp-content/uploads/704-TEP-Rider-4-NM-PRS_P2.pdf

 

Ok, so what is net metering and what do I need to know about it with regards to my home solar power system…

 

More or less, the power that you use will come from either the solar power system or from TEP. Rarely is the case you will have a 100% off-grid style solar system that allows you to consume power during the night when the sun isn’t around to power up your system.

 

During peak production of the solar power system (like high noon), your system will most likely be making more power than you are using at that moment- so the excess flows ‘backwards’ to the TEP electrical grid.

 

The traditional meters don’t really allow for the two-way flow of that power, so TEP has to install a special meter (usually). That has a cost that is above the traditional meters and that cost is paid for by those who use them.

 

Now, what a ‘traditional’ net metering agreement might look like is the power coming from the electrical grid to the home (power used) is compared to the power coming from the home to the electrical grid (power produced) and the difference is paid either by the homeowner (for power used) or the power company to the homeowner (for power produced).

 

A one-for-one trade.

Well, that’s been gone for quite some time now in Tucson. Instead, the rate TEP pays you back is set at a lower rate than what you pay. 

 

But, it is quite that simple for those on the TEP Time of Use plans. You don’t just get a check in the mail. 

 

What happens is you get credited for the power you produce at the rate for the on-peak or off-peak time period you produce it. This credit shows up on the next month’s bill.

 

In simple terms, you essentially get on-peak and off-peak one-for-one credit for the excess power your home solar power system generates. 

 

The ‘lower buyback’ rate really only comes into play when you truly make consistently more than you use and at the end of the year in October when TEP settles up the account with a ‘final’ bill. At that time, excess credits would be paid at the applicable rate.

 

Take the time to look at the source document so that you can fully understand what I’ve attempted to describe here… That way you can ask better questions when the Tucson solar sales rep is telling tales at the dinner table.

 

If you’re looking for more information about adding solar power to your home, you might want to hop on over and check out my upcoming book Tucson Solar Insider Desk Guide for Buying Solar- click here

 

Be Good!

Curtis