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Government Power Politics Technology

The Groups Behind Making Distributed Solar Power Harder To Adopt 374

Lucas123 writes: Distributed rooftop solar is a threat not only to fossil fuel power generation, but also to the profits of monopolistic model of utilities. While the overall amount of electrical capacity represented by distributed solar power remains miniscule for now, it's quickly becoming one of leading sources of new energy deployment. As adoption grows, fossil fuel interests and utilities are succeeding in pushing anti-net metering legislation, which places surcharges on customers who deploy rooftop solar power and sell unused power back to their utility through the power grid. Other state legislation is aimed at reducing tax credits for households or businesses installing solar or allows utilities to buy back unused power at a reduced rate, while reselling it at the full retail price.
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The Groups Behind Making Distributed Solar Power Harder To Adopt

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  • It is important to vote out the corrupt politicians who take industry money and write their laws. Otherwise, it can only get worse.

    • by The Grim Reefer ( 1162755 ) on Wednesday February 25, 2015 @01:25PM (#49129353)

      It is important to vote out the corrupt politicians who take industry money and write their laws.

      I agree with you. The only problem is that the next guy is just as corrupt, if not more so. We've got a two party system where both sides are just as corrupt as the other. For some reason most people are convinced that any third party candidate would be a wasted vote. I guess that's why almost no one I've ever voted for has been elected.

      • by fustakrakich ( 1673220 ) on Wednesday February 25, 2015 @01:37PM (#49129527) Journal

        The only problem is that the next guy is just as corrupt, if not more so.

        No, the problem is that he and the corrupt party are constantly rewarded with reelection. The voters have to work the system and be as active as the lobbyists, not just show up every two years. Why I am being modded down for stating this, I do not understand, aside from an ulterior motive on the moderator's part.

        • Re: (Score:3, Insightful)

          No, the problem is that he and the corrupt party are constantly rewarded with reelection.

          There's only one party that's corrupt? Or are you talking about the republi-crat party?

          The voters have to work the system and be as active as the lobbyists, not just show up every two years.

          And there's another problem. Lobbyists get paid, and it's a full time job. Plus they pay for what they want. The rest of us only have so much time to dedicate to politics and can not compete with the kind of funding that professional groups bring to bear.

      • by Attila Dimedici ( 1036002 ) on Wednesday February 25, 2015 @05:22PM (#49132121)
        The problem is that you wait for the general election when the choice for each party has already been selected. You need to take part in the process by which the candidates for your party of choice is selected.
  • Realistic (Score:5, Insightful)

    by Dan East ( 318230 ) on Wednesday February 25, 2015 @01:19PM (#49129259) Journal

    I think solar is great - I have some panels on my camper, which is very conducive to solar type use because it's already designed to function off-grid. But let's be realistic. Let's say every home in America stuck a couple thousand watts of solar power on their roof, and wanted to sell the power into the grid (as opposed of having to store it on-site). How is that supposed to work? If no power generation is required by the power company when the sun is shining, but the full normal generation is required the instant clouds sweep over a community or at night, etc, then how is that supposed to work? None of the power generation plants can function in that "instant on / instant off" type of a mode. Particularly not nuclear. The point is, once the adoption reaches some (rather smallish) percentage, there will be some major problems and costs that will have to be addressed.

    Regarding the incentives (tax credits and the like), again, once solar hits some critical mass, why would the government provide incentives? The incentives did their job, and got some number of people to adopt solar.

    Nothing is stopping anyone from using solar. It's just that it may not be a profitable (as in selling electricity or getting a tax break) endeavor. So don't whine when it can't be used purely for an economical advantage.

    • by itzly ( 3699663 )

      Use some sort of market rate. If there's a lot of supply, but not a lot of demand at a given moment, the price drops.

      • Re: (Score:3, Informative)

        by dj245 ( 732906 )

        Use some sort of market rate. If there's a lot of supply, but not a lot of demand at a given moment, the price drops.

        That's pretty much what we have now in many areas of the US (not all). It is called Locational Marginal Pricing, or LMP. You can see various realtime pricing maps by searching Google for "LMP map". Here's one of them. [misoenergy.org]

        The problem is that the people advocating for "net metering", AKA "I want to sell my power at full retail rates", don't want to pay to keep the grid maintained. The LMP price is wholesale. Getting that power to where it is needed requires transmission lines, and transmission lines ne

    • Re:Realistic (Score:5, Informative)

      by CaptainOfSpray ( 1229754 ) on Wednesday February 25, 2015 @01:35PM (#49129495)
      There is a solution already in use round the world. It's called "pumped storage". Dinorwic and Ben Cruachan are just two out of the many examples worldwide.

      Base load from generators that aren't easy to start and stop (say nuclear) is used during low usage times to pump water up to height. When peak power is required, a flick of a switch sends the water through turbines that spin up extremely rapidly. Dinorwic can go from 0 to 1320 MW in 12 seconds.

      This setup is excellent for using/storing solar power.
      • Re:Realistic (Score:4, Interesting)

        by Firethorn ( 177587 ) on Wednesday February 25, 2015 @01:53PM (#49129751) Homepage Journal

        This setup is excellent for using/storing solar power.

        Indeed, it's good. But how do you propose for the power companies to pay the £425 million [wikipedia.org], in 1984 pounds, when they're facing declining revenues because people aren't buying their power anymore? (BTW, did you mean Dinorwig?)

        If it shakes down that people can sell solar electricity for $.10/kwh, but have to buy electricity(solar and other) for $.20, then the power company has the resources to do things like build and operate more pumped storage stations. Don't forget that companies will build pumped storage where it makes the most sense - IE lowest cost for the power/energy, first. So if we need 100 Dinorwigs to meet demand, the last is going to cost a lot more than the first, because it'll require much more earth moving and construction.

        • You are correct, but you may have missed something:

          Practically, solar power will help the individual, not industry. Industry is what requires the most power(on a individual basis) bar sugar cane factories and so forth which produce power and already sell it back in this end of the world. Solar power is not practical for an induction furnace (for example). It does not have a reliable enough output.

          The utility will survive on things like steel mills that run induction furnaces 24/7 and can't realistically use

          • Actually, it'll help industry as well, assuming it's cheap enough. While they normally get their electricity cheaper than households, they can often install solar power cheaper due to quantity scaling.

            As for the reliability of output - if you have storage it's reliable enough, and induction heating is only one of many industries.

            I never said baseload would go away, just that pumped storage isn't a 'free' solution.

            • As for the reliability of output - if you have storage it's reliable enough, and induction heating is only one of many industries.

              If I was to lay odds on which one would suffer most from a momentary eclipse - an Internet server farm or a factory using solar-generated heat, I think I'd choose the server farm.

              Oddly, the server farms are among the most likely to be buying into solar.

        • by AmiMoJo ( 196126 ) *

          The time when companies could make big profits supplying electricity is coming to an end. In the future a large proportion generation will be distributed renewables, much of it owned by private individuals or small groups. There will still be centralized generation of course, but without the huge peak demand to rely on profits are going to be a lot lower.

          We probably won't need that much large storage. Home battery packs will become common, so there will be a lot of distributed storage as well. I imagine qui

      • It is very hard to find suitable sites for pumped storage. Here is an old example: Storm King Mountain [wikipedia.org].

        You should also read the feasibility analysis of pumped storage [ucsd.edu] by Tom Murphy, a physics professor at UCSD

    • The power companies may have to change from primarily power generation to more power storage (like pumping up to reservoirs) and peak-demand type systems.

      But I absolutely think the power companies shouldn't have to buy back surplus at full price. It's their distribution network that's allowing this, they're entitled to a small profit on that to fund it's building and maintenance. Otherwise why would they build it?
    • Regarding the incentives (tax credits and the like), again, once solar hits some critical mass, why would the government provide incentives?

      Because there is a consensus that widespread adoption of solar power is a net good for the society as a whole.

      • by khallow ( 566160 )

        Because there is a consensus that widespread adoption of solar power is a net good for the society as a whole.

        And they're unwilling to pay for it with their own money.

        • Re: (Score:2, Troll)

          by PvtVoid ( 1252388 )

          Because there is a consensus that widespread adoption of solar power is a net good for the society as a whole.

          And they're unwilling to pay for it with their own money.

          Government's money is our money. We get to vote on how it's used. If I believe that subsidizing an activity undertaken by someone else is to my benefit, I will vote to do so. This is me choosing how to use my own money.

          Oh, wait: you must be a Libertarian, and therefore think that you as an individual have a personal veto over everything the government might decide to do. Never mind.

    • The challenge here is the other costs that are unaccounted for. Sure, you see power at 5c/10c per KWH, but all the other parts cost money as well, such as poles. Sure, the pole may be split in cost between the power, phone and cable companies, but that's still an expensive asset. http://www.dailyherald.com/art... [dailyherald.com] provides a view into what this costs to be maintained. If a pole costs $1-3k, how many are you sharing the cost of as part of the rate. This is part of the "ugly profit" people gripe about wit

    • Re:Realistic (Score:4, Insightful)

      by bluefoxlucid ( 723572 ) on Wednesday February 25, 2015 @01:44PM (#49129645) Homepage Journal

      The "incentives" actually make solar panels expensive. If you get a $2000 subsidy for $3000 solar panels, retailers will start raising prices to $5000. You still get $3000 solar panels, but you have a perception of getting a good deal by getting $2000 back. This is why JC Penny has sales all the time: they tried for 10 years to drop the practice of marking $20 items up to $100 and running constant $80 sales, and they lost a shitton of business; switched back to showing sales off inflated prices, and they regained a shitton of business EVEN WHEN ITEMS WERE MORE EXPENSIVE UNDER THE SALE MODEL.

      As for power wholesale versus retail, they should calculate your bill by net power units. If you provide 1000kWh and consume 1000kWh, they shouldn't charge you 1000x 12c and pay you 1000x 8c. You already pay about $60/mo for infrastructure ($30 of customer fees, plus infrastructure usage fees).

      • by khallow ( 566160 )

        As for power wholesale versus retail, they should calculate your bill by net power units. If you provide 1000kWh and consume 1000kWh, they shouldn't charge you 1000x 12c and pay you 1000x 8c. You already pay about $60/mo for infrastructure ($30 of customer fees, plus infrastructure usage fees).

        Ok, what's wrong with that? 50% markup doesn't sound unreasonable.

        • Markup on what? There's no markup on anything here; there's charging you for shit you don't even get. BGE charges me $33/mo just to be a customer, even if I turn off my main breaker and gas.
      • As for power wholesale versus retail, they should calculate your bill by net power units. If you provide 1000kWh and consume 1000kWh, they shouldn't charge you 1000x 12c and pay you 1000x 8c. You already pay about $60/mo for infrastructure ($30 of customer fees, plus infrastructure usage fees).

        Keep in mind that people's electric bills can vary vastly on a charge basis. My static charges are only $40 here, and were even less at my last place.

        It all depends on how you set your meter(s) up, but net metering on a monthly basis is the 'cheapest', you only need 1 dumb meter.

        There are slightly more complex meters that will run different 'in' and 'out' meters depending on electricity flow. So, for your theoretical 1k kwh consuming house with exactly matching solar power production(on an average basis),

    • by Socguy ( 933973 )
      As the amount of variable supply power grows so to does the demand for storage of that power. The market will force utilities to adapt or die through deploying grid storage. The scenario you speak of is still decades away and we have the technology today to make this work. It will only get more cost effective as time goes by.
    • Regarding the incentives (tax credits and the like), again, once solar hits some critical mass, why would the government provide incentives? The incentives did their job, and got some number of people to adopt solar.

      Maybe to level the playing field with the fossil fuel industry that has been enjoying those subsidies and incentives forever?

      It's funny how certain people are all of a sudden saying, "You mean we're subsidizing energy? I'm shocked, I tell you, just shocked." It's even funnier when the Koch Bro

    • Here (NZ), we use a lot of hydro power. In fact the electricity company I use is 100% renewables. The benefit of hydro is you can also use it as a battery and use excess generation from houses with rooftop solar to pump water back up into the reservoir storing the energy for use at night when solar doesn't work. Here we've also been having a series of dry spells which have caused issues with the reservoirs emptying too quickly and running the risk of blackouts, and again having distributed solar on houses w

      • Here (NZ), we use a lot of hydro power. In fact the electricity company I use is 100% renewables. The benefit of hydro is you can also use it as a battery

        Correspondingly, the major drawback of hydro is ... it is 100% dependent on topology which is suitable for generating hydro.

        NZ has beautifully wobbly terrain from what I've seen (which, sadly, has been entirely on TV).

        And for rooftop solar? Well, some of us have winters in which our roof is largely covered in snow, and in which we get short days. No sure

    • by quax ( 19371 )

      The US is late to the game. In Germany you sometime get 50% of the power load from solar on especially sunny summer days [thelocal.de], while hardly any in the winter. The demand on the grid is of course brutal, but so far has been manageable.

      Gas turbine power plants are key for load balancing. [kraftwerkforschung.info]

    • You store the excess energy somewhere. We have technology today to do this: flywheels, water pumping stations, batteries. All of this requires investment nobody wants to pay for.

      • by itzly ( 3699663 )

        If you have dynamic market prices for electricity that vary throughout the day, there will be incentive for people to store their solar power in the middle of the day, and sell it in the evening. Or somebody could even buy the surplus power when it's cheap, and sell it back when it's expensive.

    • Not all power use is residential. Something like an aluminum smelting plant can use 200MW of energy, so they would run at peak capacity during the day when costs were lower and take capacity off line at night.

    • by Askmum ( 1038780 )

      I think solar is great - I have some panels on my camper, which is very conducive to solar type use because it's already designed to function off-grid. But let's be realistic. Let's say every home in America stuck a couple thousand watts of solar power on their roof, and wanted to sell the power into the grid (as opposed of having to store it on-site). How is that supposed to work? If no power generation is required by the power company when the sun is shining, but the full normal generation is required the instant clouds sweep over a community or at night, etc, then how is that supposed to work? None of the power generation plants can function in that "instant on / instant off" type of a mode. Particularly not nuclear. The point is, once the adoption reaches some (rather smallish) percentage, there will be some major problems and costs that will have to be addressed.

      Before that occurs (in the US), a lot of years will have passed. Germany has had a day with 75% renewable energy production [thinkprogress.org] and 50% solar production [reneweconomy.com.au] and will undoubtedly get similar occurences this year too. They also still have nuclear power plants and it all works. Sure, nuclear power plants are notoriously bad to change in output on short term and will therefore gradually fade from view, which is not a bad thing alltogether (even though I am not opposed to nuclear). New technologies will come to mitigate

  • by millwoodtwo ( 517215 ) on Wednesday February 25, 2015 @01:20PM (#49129273) Homepage

    The current system lets the home owner use the power grid as a battery, storing excess energy for later use. And this battery is free. But it's not free - someone has to pay for the power lines, meters, and generation or storage capacity that makes it work.

    Electric bills have two components, the supply cost and the delivery cost. The supply cost is what the electric company should be paying for electricity it buys from the home owner. But the electricity the home owner buys back should include the delivery cost.

    In effect, the utilities are subsidizing home generation, which may make sense for now, but is not a plausible end game.

    • by DogDude ( 805747 )
      It's not sustainable if they don't adapt, true. There's no reason that we can't make our electric companies act as storage for the consumers. That's why they're public utilities.
      • There's no reason that we can't make our electric companies act as storage for the consumers.

        True, but there is a reason why we can't make them do it for free, which is what the complaint is about.

    • I am not sure how it works in the US but my power costs are divided into 2 a daily charge and a cost per kw. I assume the daily charge covers fixed costs such as: cost of lines, maintenance, you can also have different rates at different times of the day, so if you are producing power in the middle of the day when everyone else is you simply pay less, for it, but you must also charge less for it.

      • Because the size of lines needed increases with more power consumed, indeed, even as you need to buy more generation(for power companies that own their own), most power companies build at least some of their infrastructure cost into the per kwh charge, on the theory that if somebody consumes twice as much energy they should pay for needing, for example, a transformer with 1.5x the capacity that would otherwise be needed, some fraction of the extra power line, running a 72kV power line vs a 60kV, etc...

    • I don't understand your comment and there is zero way to store AC power (your excess from yours example). It just goes out on the grid and someone else uses it and the generator at the power plant produces less.

      If you are talking about "hey I am producing more than I am using" and 4 hours later have to use more than you make, then that is the part that net metering takes into consideration. Where I live, it is $0.10 a kWh to consume, and $0.01 kWh to produce (ie. your excess from solar). They pay you for

    • Electric bills have two components, the supply cost and the delivery cost. The supply cost is what the electric company should be paying for electricity it buys from the home owner. But the electricity the home owner buys back should include the delivery cost.

      Although I agree with the rest of your post, I don't agree with having two different rates. There should instead be two different charges.
      There should be a connection charge that is the same whether you use energy, use no energy, or use negative energy.
      Then there should be the actual cost of the electricity based on the time of the day. If you did it this way then even net metering
      could be sustainable as everyone is paying the same rate for electricity whether it is coming or going.
      The problem is currently the connection/delivery fee is wrapped up in the electricity rate where it might be even better if the
      distribution and the generation were two separate entities. Let the generation be owned by companies, individuals, etc...
      but have the distribution be neutral infrastructure that anyone can connect to just like the current net neutrality proposals.
      This would also make the distribution network not affected by type or price of energy where it's only job is to distribute the
      electricity it receives.

    • by sjames ( 1099 )

      It's not free, even with net metering. At least it isn't everywhere. In many cases, only part of the bill is for metered power. The rest is in the form of various fees to account for infrastructure and billing costs.

      In many cases, home PV is reducing the load on infrastructure. If I had a PV setup, my surplus would most likely go to the other two homes hung off of the same pole transformer. The total infrastructure involvement would be the 3 connections to our homes. The transformer itself wouldn't even be

    • by lewiscr ( 3314 )

      The current system lets the home owner use the power grid as a battery, storing excess energy for later use. And this battery is free. But it's not free - someone has to pay for the power lines, meters, and generation or storage capacity that makes it work.

      The power grid is only conceptually (and billing wise) treated as a battery. It isn't electrically. The grid doesn't have a set of batteries (and AC-to-DC converters) storing excess solar panel output for later use. Instead, the excess power is consumed by nearby homes that don't have solar panels (the path of least resistance). Billing wise, it is treated as a battery (in a majority of areas), because that makes the billing simple.

      I see roof-top solar as a convienence for the generators. It effectivel

  • by sbaker ( 47485 ) * on Wednesday February 25, 2015 @01:20PM (#49129285) Homepage

    The thing is that with net metering, solar power users are effectively using the grid as a giant battery that they charge up during the day and discharge during the night.

    They aren't paying for use of that battery, but the utility company is still expected to maintain it. If you're not buying electricity from them, then they are providing that service for no pay - and that's not a sustainable business model.

    It's not a problem when only a microscopic percentage of users have net-metered solar power - but if a large number of people do it, then there could be a huge problem...and if there is ever more daytime solar power being generated (eg on cloudy days in winter) than is being consumed - then there will be a GIGANTIC problem to resolve - and that's going to require massive investments that they won't have.

    So I do have *some* sympathy for them. They should, at some point, be allowed to charge for the service of effectively storing your power for you...although we're not remotely close to that point right now.

    • by itzly ( 3699663 )

      I don't have a solar, but my electric bill is itemized and contains a transport cost item. It makes sense that in case of solar, you pay transport cost both ways.

      • by MobyDisk ( 75490 )

        FYI: This varies by state. I live in Maryland, and they also do things as you suggest. I think some states still use the model where the "power company" and the "utility company" are the same, and they just charge per kilowatt-hour. Inevitably that will have to change everywhere.

        (Maybe one day internet will be the same way.)

      • It does not make sense for solar. It would make sense to have a set fee for solar. Why? The price you pay without solar is based on the power being generated somewhere most likely very far away and then transported to your house. Now, with home generation, you are selling directly to your neighbor. There is very little loss and very little infrastructure required. The solar producers should have to pay some form of set fee to maintain the infrastructure, but charging them by the KWh is an unnecessary
        • by itzly ( 3699663 )

          charging them by the KWh is an unnecessary disincentive to participate

          As long as it's a realistic charge, I don't see the problem. If there's very little loss, and the neighbour wants the power, the charge can be small.

          A lot of this is the cost of having a monopoly

          Where I live, there's no monopoly. There are plenty of power companies to choose from.

      • It makes sense that in case of solar, you pay transport cost both ways.

        While it'd be a nice racket, I don't think that companies like UPS would get away with charging both the retailer and the purchaser for transport costs.

        Buyer pays transport. Seller only gets the base price. For home installs, that means that the homeowner pays base+transport for any electricity he pulls from the grid, but the utility only pays base for any he puts onto the grid.

        • by itzly ( 3699663 )

          Figure out what the real transport cost is, and split it between the consumers and producers. It's not that hard to come up with a fair system.

      • I don't have a solar, but my electric bill is itemized and contains a transport cost item. It makes sense that in case of solar, you pay transport cost both ways.

        Do the big generators supplying electricity to the utility pay transport costs? I don't think so. They just get paid wholesale price for the electricity they supply to the grid. At most someone with solar producing excess power should be charged for a two-way meter and the incoming electricity transport cost. They should be paid wholesale prices for the excess power they produce.

    • by MobyDisk ( 75490 )

      They aren't paying for use of that battery, but the utility company is still expected to maintain it. If you're not buying electricity from them, then they are providing that service for no pay - and that's not a sustainable business model.

      Oh no, that isn't the case.

      Even in places that bill by net metering, the home owner still pays for the use of the grid during that time. Some states charge a fixed fee per month, others charge a "tax" per kilowatt-hour for the power that the homeowner puts back on the grid. Maybe both.

    • So I do have *some* sympathy for them. They should, at some point, be allowed to charge for the service of effectively storing your power for you...although we're not remotely close to that point right now.

      Indeed, but I think that utility companies are some of the most forward thinking - looking 20 and 40 years ahead. And Hawaii has gotten to the point that some of their switching stations could see more power coming in than going out, so they've been having to modify things.

      Hawaii is a special case though, so it's good to examine to help determine how things might go.

  • by gurps_npc ( 621217 ) on Wednesday February 25, 2015 @01:27PM (#49129391) Homepage
    is that they are trying to maintain a badly formatted pricing system.

    What they they be doing is admit that there are two separate features of their industry - the maintenance/connection to the grid and the supply of power. It costs a lot of money to maintain the grid as well as to supply the charge.

    What they should be doing is to charge a set amount X dollars per month to connect to the grid and in addition a per kilowatt charge - that is of course smaller than the existing one. And that charge must be reasonable - based on their actual costs to maintain the grid.

    These charge changes must go to ALL their customers - both those that sell power back and those that don't.

    This gets rid of their only valid objection to selling power back to the grid - the cost of maintaining the grid.

    • My power company (small local power company) does this already. On my power bill I two items, one for the actual power I used and another one for the power grid. Both are per kWh, which I thinks is fair, as the bigger power connection for a bigger user will be more expensive to maintain too.
  • by Crashmarik ( 635988 ) on Wednesday February 25, 2015 @01:27PM (#49129395)

    It forces utility companies to buy a product they themselves manufacture and can't resell at a profit, all the while spending money to keep the grid up and running.

    • by DogDude ( 805747 )
      Utility companies are strictly regulated by the government. They are not entitled to unlimited profit.
      • But they are entitled to get paid for providing a service. Net metering forces them to provide a service without getting paid for doing it.

    • by Socguy ( 933973 )
      Utility companies can raise their prices if they wish. Utility companies had the option to be innovative and pursue solar/wind lease agreements where they would own this generation capacity and it's resale would be more profitable. They chose to stick with the traditional model. This was their choice.
      • by ibpooks ( 127372 )

        Utility companies can raise their prices if they wish.

        No they can't. They can propose rate increases and pitch capital expenditures or R&D, but they cannot do it on their own. Utilities operate in regulated markets and virtually all rate increases, fee levies and capital expenditures have to be approved by state and/or local public utility commissions (sometimes called public service commissions). Often then, there is a mostly-fixed profit margin imposed on the utility companies leading to rather inflexible pricing and investment options for the company

  • by Firethorn ( 177587 ) on Wednesday February 25, 2015 @01:46PM (#49129683) Homepage Journal

    Okay, I'm going to have to critique the article a bit. Please note that I live in Alaska and almost purchased solar panels myself - it's just that the distributor I looked at purchasing the panels from made break-even assumptions that not even I could swallow. It definitely doesn't make sense to pay somebody to install them up here.

    Anyways - very first paragraph, 'ensure utility companies pay for unused power that is routed back into the power grid - a practice known as net metering'. To my knowledge ALL power companies are willing to pay for the power returned to the grid. However, they often want to pay utility rates for it, not retail. To put it another way, let's say you're a biodiesel producer in your spare time, and every so often you have some surplus. Do you expect the local biodiesel station to purchase your fuel* for the pump price? Or are they going to want to pay the price they get it from their distributor for?

    Now, the actual situation is quite a bit more complicated- electricity isn't really stored, and the marginal cost per watt during peak times can be quite a bit higher than what you're charged as a home customer, without time cost considerations. Electricity costs tend to be a bit higher during the day, so the argument has been that panels tend to displace expensive power, not cheap power. But as market penetration increases, it can change the paradigm that utilities operate under, and unlike most industries, if it's doing it's job the power company IS looking 40 years ahead.

    The argument is that grid-tie solar users are often close to even production, and due to net metering aren't paying the maintenance costs of the wire they're using, while still not being a significant contributor to the grid. They effectively use the grid as a giant battery.

    So, while the answer for any given solar install is 'complex', on average net metering is a subsidy. Whether it's a worthy subsidy, that's up to individuals to decide.

    The problem with rooftop solar being 'on par with prices for common fossil-fuel power generation in just two years' is that we may face a situation where power becomes MORE EXPENSIVE during the night(and late evenings when people are still up). Again, are we talking about utility, IE right at the plant, or retail, after it's traveled through potentially hundreds of miles of power line? Because the former is around $.02/kwh, the latter more like $.08. Browsing the citing document, not only are they using retail, but they're not predicting the price drop he predicts. They're predicting it'll drop below standard retail prices. Which includes grid maintenance.

    Disconnecting from the grid is possible(in most areas), but it substantially increases costs to the solar installer to put in a battery bank and often even a generator. Operating the generator is obviously, much more expensive than buying power from the electric company.

    If made into law, the Kansas legislation would allow utilities to pay solar customers using net metering less than the retail rate of electricity. In turn, utilities could use the excess electricity that customers were turning back to them and sell it at the retail rate.

    So... Like how a regular business operates? I know, lose a little on each sale, but we'll make it up on volume!

    Anyways, I support more solar power, but we have to realize that we'd see some drastic changes if it ever exceeds 20% of electricity generation here in the States. It's not anywhere near that yet, but like I said, the power companies are looking ahead. Heck, we might face a future where daytime power is much 'cheaper' than night time, and there's a big push for people to charge their vehicles at work. Of course, that means all those home panels will be producing electricity that has to transition the grid... Please note that I'm looking 10-20+ years into the future here.

    As a bigger fan of electric vehicles, I can't help but imagine a system where 'retired' EV batteries are used to make homes, if not entirely self-sufficient, at least only really dependent upon a 'neighborhood grid'.

    *Let's say you're good at it and it's identical to their normal product.

    • by MobyDisk ( 75490 )

      To my knowledge ALL power companies are willing to pay for the power returned to the grid. However, they often want to pay utility rates for it, not retail.

      There are many places where, not only is the power company unwilling to pay, they are unwilling to take it for free. For a while it was illegal to put power onto the grid, which necessitated inverters and batteries. At that time, home solar wasn't worth it for anyone at all.

      due to net metering aren't paying the maintenance costs of the wire they're using, while still not being a significant contributor to the grid.

      I believe that states that have net metering also have a fee for using the grid. I know Maryland does.

  • Utilities will have something real to complain about when solar generation surpasses peak and intermediate load usage. Until then, they're usually saving from distributed generation because the cost of spinning up more generation to meet peak load is much higher than that for base load generation which is always running.

    Also, the centralized grid system is an outdated liability. Decentralization is a good thing. Utilities rage on about decentralization hurting grid stability, but they've got better sta

  • You should not have to pay transport costs for the power you produce, because that power doesn't have to run back to the power plant and then back out. Most likely your neighbors are using that power, and the power loss is minimal. I could see a few dollars charge for general upkeep, but it shouldn't a percentage of what you produce because that is irrelevant. I could see adding some cost for additional data infrastructure so that panels can talk to the plant and the plant can potentially throttle panels
    • by itzly ( 3699663 )

      What if your entire neighbourhood produces a surplus ? If solar panels are good for me, they are also good for my neighbour. And when the sun is hitting mine, it's very likely also hitting theirs.

  • ...have passed revisions to their net metering policies that would included fixed monthly surcharges for residences and businesses that install solar to make it less competitive with conventional forms energy.

    Well, that's not a biased statement at all, is it? I don't know all of the details of who wants want law passed to do who knows what, but I think there is a legitimate argument to be made for a fixed monthly charge.

    A standard, non-solar customer is hooked up to the grid, and uses 100% of the power companies power 100% of the time. The power company knows this, so they are able to figured out what to charge the customer for things like power generation, transmission, distribution, etc.

    Along comes a sol

  • ...is that HOAs are just as big if not a bigger impediment to solar as many ban them from their communities.
  • Within a decade or so the cost of in home batteries will likely come down enough that it will be practical to produce and store your own electricity and tell the utilities to get screwed, especially in the southern US.

  • Syngas or biogas is something people should look at seriously. It is an easy way to get people on biofuel without genetic engineering or cultivating weird strains of algae.

    You can burn wood, leaves, crop dross, grass clippings, etc. About sixty pounds of biomass will provide about enough power for three residential homes for a day. And that potentially can include lots of waste heat that can be used to heat homes and water further increasing efficiency. What is more, some systems can even provide refinery t

  • I clicked the link to read the comments, an automatic advertisement:
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    I did a screen capture for my collection articles with interesting accompanying auto-ads. One of these include article about Russian missile buildup included ad, "Meet Russian Beauties" (hey, I thought I disabled ads)

  • by 140Mandak262Jamuna ( 970587 ) on Wednesday February 25, 2015 @05:34PM (#49132235) Journal
    Typically the grid operates at full load on sunny days in the afternoon when all the airconditioners are at full blast. The spot price for electricity fluctuates a lot. And most utilities buy and sell power in this spot market where they make most of their profits. The base load is just 40% of the peak load and there is so much of excess capacity electricity basically sold at cost or at a loss.

    Enter, Solar.

    It provides power exactly when the demand peaks. If solar meets the peak power demand, the spot price for electricity will fall. For brief period an Australian utility had to sell power at *negative* prices at the peak! There was so much solar power feeding into the grid, they had to pay people to take their power, lest their generators overheat and burn.

    The amount of solar electricity created might be small in terms of energy produced. But when it comes to profits, this probably cuts deep into the profits of the utilities.

    Eventually the utilities will reduce their peak capacity to create an artificial shortage and trade. The net metered roof top solar energy is bought back at wholesale prices by law. They typically get sold instantly in the spot market at peak prices. The utilities are making tons of money on the net metering, all their talk about roof top solar being free loading is just bull shit.

I THINK THEY SHOULD CONTINUE the policy of not giving a Nobel Prize for paneling. -- Jack Handley, The New Mexican, 1988.

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