Transform Energy Blog

How to Accurately Measure the Financial Performance of Your College’s Solar Energy Systems

Written by David Burdick | Aug 25, 2025 6:46:25 PM

How to Accurately Measure the Financial Performance of Your College’s Solar Energy Systems 

Part of our content series on unlocking more value from existing solar investments at California Community College Districts. 

Over the past decade, many California colleges have invested millions into solar PV and battery storage systems—hoping to save on energy costs, reduce carbon footprints, and build a foundation for long-term sustainability. But how can you know if those systems are truly delivering on their promise? 

Measuring solar performance correctly is more complex than it may seem. You can't just look at solar production reports or reduced utility bills. A thorough financial assessment requires a detailed and data-driven methodology that goes beyond surface-level metrics. 

 

The Right Way to Measure Financial Savings

To evaluate whether your clean energy systems are delivering their full value, you must perform a structured financial performance analysis that includes the following steps: 

 

1. Reconstruct What the Utility Bill Would Have Been Without Solar or Batteries 

Using data from: 

  • Utility meters 
  • Solar meters 
  • Battery meters 

…we reverse-engineer the actual load profile for your facility—the electricity demand that would have appeared on the utility meter had the solar and battery systems not been installed. This reconstructed load profile is then run through your electric utility’s tariff structure. 

 

2. Account for Utility Rate Structure Nuances 

The next step is simulating what the utility would have charged using: 

  • The appropriate time-of-use (TOU) or demand charge schedules 
  • Special programs your campus may participate in, such as Community Choice Aggregators (CCAs) 
  • Accurate rates for the various rate updates from that electric utility over the period of the study 

Getting this right means factoring in every detail of the rate structure. A small oversight—such as misapplying peak demand charges or neglecting CCA billing structures—can misstate your actual savings by hundreds of thousands of dollars.

 

3. Compare Simulated vs. Actual Bills 

Once the simulated “no-solar / no-battery” electric utility bill is created, compare it against the actual utility charges to calculate the true electricity bill savings attributable to your clean energy systems. 

 

4. Factor in Additional Revenues (e.g., RECs) 

Beyond electricity savings, your college may also generate revenue through Renewable Energy Certificate (REC) monetization. A robust financial study will include:

  • A review of expected vs. actual REC revenues 
  • A check for missed minting or sales opportunities 

 

5. Account for Operating Expenses 

A true picture of financial performance must include:          

  • Operating & maintenance expenses 
  • PPA or lease payments for third-party-owned systems 
  • Asset management expenses 

The result? An Accurate Net Financial Benefit figure that captures the full financial value of your solar and storage investments. 

 

Case in Point: A Large-Scale District Solar & Battery Portfolio Installed At One California District 

For one California District (with an 8 megawatt solar and battery portfolio), this level of financial analysis revealed the following for their last fiscal year: 

 

  • Key Highlights from the Study: 

  •  

    • Actual utility bill savings exceeded projections by 17% 
    • REC revenue was 58% higher than anticipated 
    • Operating costs came in 18% below expectations 
    • Net financial benefit: $1.3 million in a single year 

This outcome wasn’t accidental—it was the result of diligent asset management. 

 

Want to See the Full Case Study? 

We’ve prepared a version of this financial performance case study that includes contacts at the District so you can connect with them about their experience. If you’d like a copy or want to explore how this approach could benefit your district, reach out below. 

 

 Request the Case Study 

 

Transform Energy provides solar and battery asset management services to California’s Community College Districts—maximizing the financial returns from clean energy investments you’ve already made. 

 

Visit transformenergy.com/asset-management or contact David Burdick at david.burdick@transformenergy.com.