If the residential customers generated more electricity than they consumed, they earned credit equal to the city's avoided fuel cost.
This is called a Net Energy Metering (NEM) program where the customer only pays for the energy used or is credited with excess energy generated.
In 2012, the program was extended to include non-residential customers.
The program was also amended to provide that customers who generated electricity in excess of their needs were credited with the excess electricity at the standard residential rate for every Kilowatt-hour put into the City's electric distribution system.
By 2020, 334 customers had signed up for the program.
A review in 2020 by the City shows that renewable energy credits exceed avoided energy costs and results in cost shifting from NEM to Non-NEM customers. There was also no limit on the credit $.
A comparison of a typical Georgetown residential electric bill for August follows:
It is clear that the customer with net solar energy saves $64.16. Yet the City is selling its excess electricity from the foolish long-term wind and solar contracts at a loss and local residents are generating more excess energy to be sold at a loss into the ERCOT energy market.
The publisher of the Wilco Sun estimated the city lost $32,936 over an 18 hour period on April 26, 2020.
Needless to say the City needs to modify this program and they are indeed in the process of reducing the NEM program to reduce the transfer of costs from those with solar panels on their roof to those without solar panels.
An in-depth analysis and description of the program changes can be found here.
There are customers who have signed up for the program that think they had a "contract" with the City with a defined set of conditions. They are finding out the city can change the terms of their "contract" unilaterally without their consent.
Lesson learned - never trust the government!
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