A PBI is a solar incentive where payments are made based on the actual energy production of your solar system over time, typically in dollars per kilowatt-hour ($/kWh).
Instead of receiving a one-time rebate upfront (based on system size or cost), customers earn money based on how much electricity their system produces — encouraging better performance and maintenance.
Performance Matters: Better system performance = more money.
Long-Term Income: Encourages sustained maintenance.
Utility Oversight: Usually includes performance tracking for transparency.
Install a Solar PV System
– Usually requires system monitoring equipment to track energy output.
Enroll in a PBI Program
– Offered by utilities or state energy agencies.
System Starts Producing Energy
– Output is monitored in real time (e.g., monthly/quarterly).
Get Paid Per kWh Produced
– Utility pays you a fixed rate for every kWh (e.g., $0.10/kWh).
Duration of Payments
– Payments are usually made for 5 to 10 years.
A Feed-in Tariff (FiT) is a policy mechanism where solar energy producers are paid a fixed rate by their utility or government for the electricity they generate and feed into the grid.
This rate is usually guaranteed for a long term (e.g. 10–25 years).
The tariff is often higher than the market rate for electricity to encourage investment in renewable energy.
Install a Solar PV System
– System must be grid-connected.
Generate Solar Electricity
– You may use part of it for your own needs.
Export Excess Energy to the Grid
– Surplus electricity flows to the utility grid.
Get Paid for Exported Energy
– Utility pays you a predefined rate per kilowatt-hour (kWh) exported.