Net Metering And Rooftop Solar For The Utility Of The Future
The erosion of electric utility revenues seems to be a concern but the solution is at hand.
"Why the new focus on net metering? The cost for rooftop solar panels has fallen 80% since 2008 , including 20% in 2012 alone . Installed rooftop solar energy has increased by 900% between 2000 and 2011. As consumers install more rooftop solar panels and net meter them, utility revenues will decrease."
The current way used by most states is the method of rendering excess energy credits in cases of distributed generation systems (DG) equal to the full retail energy rate that consumers pay for energy, i.e. the amount consumers are charged for using energy. But this creates a cost imbalance between DG users and regular utility users unfairly shifting costs to the latter.
Utilities say "the credit should be equal to the utilities’ wholesale energy cost at the time of day when excess energy flows back to the grid. "
However, state regulators are keeping current policies for what they are. Idaho Power’s request to pay less than the full retail rate and to impose higher charges on net metering consumers was rejected by the Idaho Public Utilities Commission but Arizona refiled for the issue.
As a matter of fact, rooftop solar capacity converted to electric output accounts for 0.2% of total US capacity which sustains paying the full retail rate and encourages the sales for green energy systems as a whole. " Utilities will gain valuable experience on how distributed generation functions under local conditions, and how to integrate renewable energy into their electric grids."
Though net metering costs should be considered carefully by regulators before implementation based on pros and cons, DG reached at great scale will come to receive fair value such as getting paid for currently overlooked benefits provided by their units.
" The utility’s cost of service will be fairly apportioned between consumers who own distributed generation and those who do not. With better information on distributed generation performance, new benefits will be recognized. These new benefits will increase the value of distributed generation and lower the cost of service for all utility consumers. This is how net metering and rooftop solar should function for the utility of the future."
It looks like the job is far from done but a future concept has already been designed. It is nothing but fair to strike a sound balance between traditional grid consumers and advanced renewable energy users. And it's all in the price !
$IFTF$
The erosion of electric utility revenues seems to be a concern but the solution is at hand.
"Why the new focus on net metering? The cost for rooftop solar panels has fallen 80% since 2008 , including 20% in 2012 alone . Installed rooftop solar energy has increased by 900% between 2000 and 2011. As consumers install more rooftop solar panels and net meter them, utility revenues will decrease."
The current way used by most states is the method of rendering excess energy credits in cases of distributed generation systems (DG) equal to the full retail energy rate that consumers pay for energy, i.e. the amount consumers are charged for using energy. But this creates a cost imbalance between DG users and regular utility users unfairly shifting costs to the latter.
Utilities say "the credit should be equal to the utilities’ wholesale energy cost at the time of day when excess energy flows back to the grid. "
However, state regulators are keeping current policies for what they are. Idaho Power’s request to pay less than the full retail rate and to impose higher charges on net metering consumers was rejected by the Idaho Public Utilities Commission but Arizona refiled for the issue.
As a matter of fact, rooftop solar capacity converted to electric output accounts for 0.2% of total US capacity which sustains paying the full retail rate and encourages the sales for green energy systems as a whole. " Utilities will gain valuable experience on how distributed generation functions under local conditions, and how to integrate renewable energy into their electric grids."
Though net metering costs should be considered carefully by regulators before implementation based on pros and cons, DG reached at great scale will come to receive fair value such as getting paid for currently overlooked benefits provided by their units.
" The utility’s cost of service will be fairly apportioned between consumers who own distributed generation and those who do not. With better information on distributed generation performance, new benefits will be recognized. These new benefits will increase the value of distributed generation and lower the cost of service for all utility consumers. This is how net metering and rooftop solar should function for the utility of the future."
It looks like the job is far from done but a future concept has already been designed. It is nothing but fair to strike a sound balance between traditional grid consumers and advanced renewable energy users. And it's all in the price !
$IFTF$
