 # Cheap Solar: The Advantage of Tierd Rates Published on 05/25/2009 in
Updated 02/23/2016

In many States such as California, utilities often will charge customers different rate tiers for kilowatt hour usage. The more power you use, the higher your rate jumps for that above average usage. As a result, using solar with tiered rates can save a lot of money.

## 2 thoughts on “Cheap Solar: The Advantage of Tierd Rates”

1. martin says:

“Shall the shadow go forward ten steps, or shall it go back ten steps?”

2. martin says:

A ~3kW PV system may have a greater value depending on the value of energy based on usage?

For example, an approximate size of ~3kW Solar PV system, if the value of energy is approximately ~30 cents per kWh, at an approximate ~400 kWh usage depending on location would be a value of approximately ~\$1440 per year.

For example, an approximate size of ~3kW Solar PV system, if the value of energy is approximately ~9 cents per kWh, at an approximate ~400 kWh usage depending on location would be a value of approximately ~\$432 per year.

In addition, a ~3kW PV system may have a greater value depending on the value of energy based on time.

If the value of energy increases based on time, the azimuth of the array may increase to maximize the value of energy. Although quantity of energy may decrease, the internal rate of return (IRR) increases.

A value of energy of ~3kW PV system based both on time and usage, may be maximized greater than the marginal cost of capital (MCC).

In other words, use solar as a way to minimize amount you pay. For the same size array, the more energy you use, the less money you loose. But if you use energy, based on the time of day, also adjust the azimuth of the array, and further minimize the amount you pay?

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