Legal Term
Reviewing Community Solar Subscription Agreement for Credit Calculation
Legal Definition
The detailed examination of the contractual provisions in a community solar subscription agreement that specify how a subscriber's allocated share of the solar array's electrical output is converted into monetary credits applied to their utility bill. This review focuses on the formula, rates, adjustment mechanisms, and responsible parties for calculating these credits.
In Plain English
Figuring out the exact math and rules in a shared solar contract that determine how much money you'll save on your monthly electric bill.
Example in a Contract
Section 4.2: Bill Credit Calculation. The Provider shall calculate the Monthly Bill Credit for the Subscriber by: (a) determining the Subscriber's allocated kWh of solar energy generated in the preceding month based on their Subscription Capacity; (b) multiplying such kWh by the then-applicable 'Utility Net Metering Rate' as defined by [Utility Company]'s tariff; and (c) applying the resulting credit to the Subscriber's next utility bill. The credit value may be adjusted quarterly to reflect any changes in the Utility's rate schedule or applicable regulatory fees.
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