italki - the usage of "credit" In this sentence:In Texas – where the state attorney general recently threaten

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the usage of "credit" In this sentence:In Texas – where the state attorney general recently threatened to sue to the EPA to block implementation of proposed carbon regulations – the city of Austin has experimented with a “Value of Solar Tariff” (VOST), meaning that the local energy utility credits residential consumers for any power they generate through solar energy. I am confused about "energy utility credits residential consumers ". I mean "credit" here means the consumers own energy utility money or the energy utility own the consumer money?

Sep 18, 2014 7:44 AM

Answers · 11

A little hard to explain. Basically, if you are able to generate enough power that you "give" power to the utility company, then they will "pay" you for it by giving you credit. In this situation, they don't give you money to spend on other things, so it isn't technically a payment. They save the credits for you, and if you ever lose your solar panels, they will use the credits you have accumulated to pay your energy bill for you. So, when the credits run out, you have to start paying again. Does that make sense?

September 18, 2014

Credit as a verb means to pay into someone's account, this could be cash into a bank account or another account such as electricity account. In your example the utility company "pays money into consumers accounts" for making their own electricity using Solar power. The consumers make the energy, the utility company pay them to encourage them to continue. It isn't clear whether consumers are credited cash to their bank accounts or towards your energy account.

September 18, 2014