Under the previous Net Metering structure, solar customers were billed at a flat rate that didn't account for the higher costs of electricity during peak demand hours, typically from 5 to 9 p.m. on weekdays. During these hours, the cost to generate, purchase and deliver electricity is significantly higher, but solar production is typically low or nonexistent.
Because solar customers still rely on the grid during these peak times but weren't charged rates that reflect those costs, the difference — about $400 per year per solar customer — was effectively being covered by non-solar customers. This cost shift means that customers without solar were paying more to maintain grid reliability and meet peak demand, even though they didn’t benefit from net metering credits.