Definition and Solar Context
Utility rate structure refers to the pricing framework a utility or retail electric provider uses to charge customers for electricity consumption. Rate structures define how much a customer pays per kilowatt-hour (kWh) consumed, and may include fixed charges, tiered pricing, and other billing components.
GetSunScore applies publicly available utility rate data as a foundational input to the SunScore™ Projection Engine, using rate structure information to estimate the financial value of solar energy production.
What Does Rate Structure Mean?
A utility rate structure is the framework by which a regulated utility, cooperative, or retail electric provider prices electricity delivered to customers. Rate structures typically comprise a fixed customer charge and an energy charge (expressed in cents or dollars per kWh).
Tiered rate structures apply increasing per-kWh prices as consumption rises. Time-of-use rates charge different prices depending on when electricity is consumed. The rate structure applicable to a given customer depends on their utility territory and selected tariff.
Why Rate Structure Matters in Modeling
Utility rate structure is the primary cost-side variable in solar savings modeling. The SunScore™ Projection Engine applies local utility rates to estimated solar production figures to generate estimated annual savings projections.
A higher effective utility rate amplifies the estimated savings from solar generation. GetSunScore uses publicly available rate data from utility tariff filings (reference-year 2024) with appropriate temporal labeling for analytical consistency.
How Rate Structure Applies in Texas
Texas electricity pricing operates within a highly deregulated retail market. Within ERCOT's footprint, residential customers can choose from multiple retail electric providers (REPs), each with distinct rate structures.
Outside ERCOT, customers served by investor-owned utilities or cooperatives operate under regulated rate structures. The SunScore™ Projection Engine accounts for this structural complexity by applying territory-specific rate data sourced from 2024 PUCT filings and REP rate postings.
Frequently Asked Questions
A utility rate structure is the pricing framework a utility or retail electric provider uses to charge customers for electricity. It typically includes a fixed monthly charge and an energy charge per kWh consumed, along with potential demand or time-of-use components.
The SunScore™ Projection Engine applies local utility rates to estimated solar production to calculate estimated savings. Higher effective rates produce larger estimated savings projections. All rate inputs are sourced from publicly available 2024 utility filings.
Most Texas customers within ERCOT can choose from multiple retail electric providers, creating a competitive market with variable pricing. Customers outside ERCOT or served by municipal utilities or cooperatives operate under regulated or cooperative rate structures.
A time-of-use (TOU) rate structure charges different prices for electricity depending on the time of day. Peak hours typically have higher rates; off-peak hours have lower rates. TOU structures can affect the value of solar generation.
Utility rates are subject to periodic adjustment through regulatory proceedings, fuel cost fluctuations, and market conditions. GetSunScore conducts quarterly data reviews to update rate inputs based on publicly available 2024 utility filings.
All rate references use 2024 publicly available utility filings and are subject to change. Projections referenced on this page are modeled scenarios only.