Solar offset compares the energy you use and the energy you produce. Installing solar panels saves a lot of money. It is normal to think that offsetting 100% of your energy needs with solar power is the best way to have savings, but that is not the case.
You can either generate excess electricity from solar panels and sell it to the utility or generate less than what is needed and pay for that extra electricity. Other times, you’ll be producing just the right amount of electricity.
You'll get your solar offset if you calculate all the energy production and consumption over a year. This article will help you make sense of solar offset and what it entails.
Calculating Solar Energy Offset
Anyone can calculate solar energy offset by using this simple equation:
Amount of Yearly Solar Electricity Generated in Kilowatt-Hours (kWh) / Amount of Yearly Electricity Consumed in Kilowatt-Hours (kWh) = Solar Energy Offset
Once you’ve calculated the solar energy offset, convert it into a percentage by multiplying it by 100. The ideal solar energy offset is 1, or 100%.
Solar Power Offset Needed
Homeowners always look for ways to reduce electricity bills after installing solar panels. Even by offsetting 100% of the cost, you might have to pay some bills due to the functioning of net metering.
Solar offset only measures the consumption and production of electricity over a year, plus the fact that it doesn’t consider the amount you pay to the utility or the credit you get for net metering. We advise you to have more than 100% solar offset for maximum savings.
Factors Affecting Solar Panel Offset
Estimating solar panel offset is hard since the data is purely theoretical, and there is no specific percentage due to the data being derived from history and assumptions of the future. Let’s take a closer look at how you can produce your desired solar offset.
Energy Consumption Habits:
Household electricity use can differ by factors such as:
- Change in weather.
- Variation in climate.
- Use of lights.
- Operation of appliances.
It is impossible to control the amount of electricity you can generate but limiting your use of that electricity is completely possible.
Seasonality And Sunlight:
In different seasons and on different days, you will have a variety of electricity output from your solar panels. Your geographical location also plays an important role in electricity generation.
Roof Type and Size:
Roof type and size matter greatly since flat roofs won't have much surface area compared to pitched roofs. If you don't have adequate space on your roof to meet your energy requirements, you should invest in solar batteries to store extra electricity for times of need.
Utility Company Regulations:
A utility company can limit a maximum offset, so you might have to contact your local utility company to know the rules. However, you really can't change any utility rule.
The Importance
Before installing any solar components on your roof, remember to consider solar offset. You can maximise your solar offset if you use net metering wisely and save up on energy use.
Sometimes, only solar panels are enough to achieve 100% solar offset while fully covering all your energy needs. But other times, you will have to install additional systems like solar batteries to keep up with your energy needs.