“Let say it enables you to sell 10 KW-hrs more to the utility per day. At 12 cents/KWH, that’s $1.20...”
That’s the RETAIL price. The company only pays retail instead of wholesale because the government makes it, and then it has to raise the price to it’s other customers to make up the loss.
That’s bad, bad, socialist policy.
Of course there may be times and situations when it is worth more than the average wholesale cost.
But it’s never worth retail to the company.
Meh. With net incomes being less than 3% of total revenue in many energy markets, retail price is remarkably close to average cost... and actually far below incremental cost at peak hours.