- Joined
- Jun 10, 2008
- Location
- Bay Area
- Moto(s)
- Kawasaki Versys 1000LT,
Work: BMW R1250RT-P
Prior: Honda 600RR Graffiti, Kawi 650R
- Name
- D
UPDATE - One year after going live.
Our first NEM year-end true-up bill came in at the end of July. We signed our contract in April 2022 and went live in mid-July last year.
We generated 87 excess kWh of electricity, netting us a whopping bill credit of $7.16 at a rate of around $0.08/kWh.
When we initially ran our internal rate of return calcs we were using the then current rate of $0.32/kWh and assumed inflation to be 7.75%. This resulted in a simple payback of 5 years and an IRR of around 18%.
As it turns out, the rate hikes were bigger than that in the last two years, and the average rate is now $0.50/kWh. Our usage levels were about spot on accurate, so the IRR is now almost 25%, and simple payback comes out to 4.1 years.
This is shaping up to be a good investment, especially given the future rate hikes that are likely.
That's awesome!
But why did the excess pay so low? Is that part of NEM2? I thought excess should be credited at around $0.30/kwh. Or are they allowed to credit at only $0.08/kwh for anything in excess of actual usage at the end of the year?
I assume a credit means you had no true up bill to pay? Did you have an ongoing monthly charge ($10 or something?) for electricity service in addition to true up?