Often people are paying tiered rates for their electricity. This is a higher rate (higher than the base rate) for electricity charged when a home or building is using more than the base amount allocated for the building.

Installing a wind or solar energy system will reduce your electric demand from the utility.  This can result in a lower utility rate because you stay within the base rate level. In this case, the more expensive tiered rate is eliminated, reducing your average electricity rate. Simply put, the more you produce the less you use from the power company.

TOU METERING
Many utilities offer Time-of-Use (TOU) meters. This allows the price of electricity to vary by the time of the day (called PEAK or OFF-PEAK) periods, and by season, winter vs. summer, usually. If TOU metering is offered by your utility, a wind or solar energy system may result in additional savings. This is because peak rates often occur when a solar and/or wind system is producing their most power, thus reducing your demand from the utility.

NET METERING
With Net-Metering, surplus electricity that is generated from your system will be credited back to your utility account. So, if your wind or solar system generates more than you are using, your meter spins backwards!  You are not selling the power to the utility, only using them for your battery. In some cases now, you can even receive a check for the excess you generate every year!