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  • Writer's pictureBrad Morton

CenterPoint EDG Rate Increased - Good News for Solar Owners!

On March 1st, 2023, a compliance filing was submitted by CenterPoint Energy to increase the Excess Distributed Generation (EDG) for solar energy to $0.08894 per kwh. This is a significant increase from the original rate of $0.027 per KWH which was filed approximately one year ago. This new rate will be beneficial to solar energy system owners that send a portion of their energy back to the grid and provide a greater return on investment for solar energy system owners.

How does the EDG rate work?

Solar Energy systems are tied to the grid which means that at certain times, they can be capable of sending their excess generated power back to the grid. This only occurs during daylight hours when the system is producing and when the home owner is not consuming all that is generated. The amount that is sent back to the grid is usually about 20-30% of the system production, and 70-80% is consumed in the house. For the energy that is consumed in the house, this energy is still credited at the retail rate which is now approximately $0.16-0.18 per kwh. For the energy that is sent back to the grid, this is now credited at $0.08847 per kwh. So, with property solar system design, the owner can still gain most of their energy at retail rate.

There are many variables that determine consumption rates, so it can be difficult to predict how much will be sent to the grid. However, with proper system design, and with the use of energy storage systems such as the Tesla Powerwall, the amount sent back to the grid can be controlled and minimized. And, with the Tesla Powerwall, you can save some of the energy for emergency power outages such as storms.

What is my EDG Payback?

There are very many variables that affect the calculation of solar payback. One must have a crystal ball that can see into the future to see what the price of coal, oil, and utility rates will be at that time. So, the truth is, it's an impossible calculation. So, what we must do is look backward into history and study what the historical inflation rates have been. And, the result is that energy prices have increased 3-4% annually for the last 50 years. So, it's almost a guarantee that will be the minimum inflation rate going forward. However, as the evidence of climate change has become more apparent and the demand for coal and natural gas has increased, the utility inflation rates could be higher in the future. And, this could especially be the case if and when CenterPoint converts to natural gas in the future.


Morton Solar has fought valiantly for the advancement of renewable energy in the Hoosier state over the years. Our efforts helped get the net-metering law expanded in 2010 as Governor Daniels 'All-of-the-Above' energy policy when he wanted to build a coal-to-gas plant in Rockport, Indiana. The result of expanding the net-metering law has created over 3000 renewable energy jobs in the state over the last 10 years.

We also put up a fight against the passing of SEA309 which rolled back net-metering. You can read more about our fight here:


The only way to know what YOUR price of energy will be in the future is to invest in a solar energy system. This will provide a consistent yearly KWH production at rate that you can calculate now and into the future. A solar energy system not only provides financial security, but can also provide emergency power for your family during grid outages. And, if you drive an electric car, a solar energy system provides the fuel for your transportation. Can you imagine not having to pull into a gas station every week?

So, give us a call or visit here for a free quote:

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