[GNC] Biils in credit

[Michael or Penny Novack]

On 12/16/2018 11:04 PM, Andrew Clark wrote:
> I get a bill from my electricity provider. For part of the year, the solar
> feed in payments mean our bill is actually in credit. eg.
>
> ..........
> What the best way to keep track of this?
>
This may depend on the EXACT details. For example, in my situation that 
would be a CONDITIONAL credit available to pay future amounts due to the 
utility but not refundable << if you generated more than you used over 
the long term >>

Since I don't actually keep (regular) personal books, don't have THIS 
problem. However folks with solar systems might be interested in how I 
keep a set of VIRTUAL books to determine pay off/return on the solar 
system. The usual demonstration of return or years to pay off given to 
customers ignores things like the present value of money, taxes, 
insurance, etc.

Treating the solar system as if it were an entity to whom you lent money 
(gave it a mortgage*) lets you see that return/pay off for real. Income 
for this entity credits from the utility, tax credits, sale of SRECs, 
etc. Expenses for this entity things like interest on loan, tax 
liability (sale of SRECs), share of property insurance, depreciation, 
etc. The extra work of entering transactions for this virtual entity is 
not terribly burdensome as you can count the number per month on the 
fingers of one hand. BTW -- I used a realistic rate for a 20 year fixed 
rate mortgage but remember when comparing for investment income purposes 
that this is an internal (tax free) loan.

Michael D Novack

* more like a line of credit, payments of principle made from 
"undistributed cash" (income above expenses) as available. And if in 
your jurisdiction property tax is affected, don't forget to include the 
system's share of that (in my jurisdiction, exempt for 20 years).

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.