Understanding Net Billing for Commercial Solar in Calgary

1. Understanding Net Billing for Commercial Solar in Calgary

2. Is your company maximizing the potential value of solar power generation? When utilizing solar panels for a business in Calgary, numerous potential benefits are available. Reducing carbon footprints and contributing to environmental protection are among the chief priorities. Yet, there can also be financial advantages to using commercial solar in Calgary. While many think of the cost benefits of a system “paying for itself” over time, a well-designed and implemented setup can provide positive long-term financial impacts related to energy consumption. Though it may not necessarily be a source of profit, the unique structure in Alberta for electrical billing can help offset energy costs and reduce expenditures. Let’s delve into how it works.

3. What Is Net Billing? When the solar panels on your commercial property generate more energy than your business can consume, that excess energy can return to the grid for use elsewhere. There may be times of the year when your setup consistently generates an excess level of power. The rates you receive for “selling” this energy back to the grid can have a significant impact on the ROI of your solar investment.

4. Alberta typically employs an approach known as “net billing.” Note that this is different from “net metering.” In net metering, the energy you send back to the grid offsets the energy you consume. You receive a bill that accounts for the net amount of energy you used after subtracting the solar contributions. In net billing, you’re compensated at a pre-determined wholesale rate for all the energy you send back to the grid. You pay the normal price for the power you consume, but receive payments (or bill credits) back for the solar energy you generate and send back to the grid. What’s Important to Know About This Billing Structure?

5. Because Alberta features a more deregulated energy market, there can be significant variation in the rates you can lock in with your electrical provider. It’s therefore essential to understand that there may be opportunities to obtain a higher rate that can offset a greater portion of your energy consumption costs. Seasonal variations also have an impact, as rates may fluctuate throughout the year. Balancing the correct wholesale rate for excess energy with a regular consumption rate that makes sense for your business is essential to maximizing ROI.

6. Note that net billing is an opportunity available to “small-scale micro-generators,” which refers to businesses with installations that generate less than 150 kilowatts of power. While many companies may not approach this limit, it does provide opportunities to expand systems where possible to generate more power, thereby increasing the amount of excess energy sent to the grid. Net billing could lead to a significant reduction in your monthly energy costs with the right retailer and a favorable rate. Find Help With Tenet Renewables Today

7. At Tenet, we love using our experience and understanding to help organizations unlock the value of commercial solar in Calgary. Our team provides extensive consulting services to design the system that best suits your energy needs and financial requirements. We also install and maintain systems to a high standard of quality and reliability, ensuring you enjoy long-term value. Connect with us today to learn more about the pros and cons of net billing for solar panels for a business in Calgary, and see how it could impact your business.