ClosedCaption
Diamond Member
- Sep 15, 2010
- 53,233
- 6,719
- 1,830
http://www.nytimes.com/2013/07/27/b...do-it-yourself-power.html?smid=re-share&_r=1&
Thoughts?
Alarmed by what they say has become an existential threat to their business, utility companies are moving to roll back government incentives aimed at promoting solar energy and other renewable sources of power. At stake, the companies say, is nothing less than the future of the American electricity industry.
According to the Energy Information Administration, rooftop solar electricity the economics of which often depend on government incentives and mandates accounts for less than a quarter of 1 percent of the nations power generation.
And yet, to hear executives tell it, such power sources could ultimately threaten traditional utilities ability to maintain the nations grid.
They have good reason. In California, as intended, net metering has proved a strong draw for customers. From 2010 to 2012, the amount of solar installed each year has increased by 160 percent, almost doubling the amount of electricity that rooftop systems can make, according to the Solar Energy Industries Association. With federal tax credits and a rebate program for installation costs under the California Solar Initiative phasing out, determining how much to pay customers has become even more critical.
Net metering right now is the only way for customers to get value for their rooftop solar systems, said Adam Browning, executive director of the advocacy group Vote Solar.
Mr. Browning and other proponents say that solar customers deserve fair payment not only for the electricity they transmit but for the value that smaller, more dispersed power generators give to utilities. Making more power closer to where it is used, advocates say, can reduce stress on the grid and make it more reliable, as well as save utilities from having to build and maintain more infrastructure and large, centralized generators.
But utility executives say that when solar customers no longer pay for electricity, they also stop paying for the grid, shifting those costs to other customers. Utilities generally make their profits by making investments in infrastructure and designing customer rates to earn that money back with a guaranteed return, set on average at about 10 percent.
Thoughts?