Clear answer
Clear answer, explained.
Industrial tariffs often include energy rates, peak demand charges, and time-of-use or interval pricing. Rooftop solar reduces grid energy purchases and can lower peak demand, improving savings and shortening payback. The higher the avoided tariff components, the stronger the solar ROI.
Key points
What this means in practice.
- Higher energy rates increase solar savings per kilowatt-hour
- Demand charges can be reduced through peak-shaving with solar
- Time-of-use pricing rewards daytime solar generation
- Interval and capacity-based tariffs affect financial modelling
- Tariff structure influences system sizing and orientation
- Utility rate escalation improves long-term
When this applies
Best-fit environments.
- Industrial facilities on demand-based or
- TOU tariffs
- High-load sites such as manufacturing, processing, and logistics
- Projects evaluated for payback period and lifecycle cost savings
Q·01
