04-03-2016, 10:09 AM
As the cost of solar panels has been dropping the number of homes installing them has been increasing dramatically. One of the biggest selling points of installing solar panels is that if the home is still connected to the power grid ( and almost all are) the power companies have been required to purchase the excess power that a home produces from solar panels but does not use. This is called "net metering"
Power companies, of course, are opposed to this practice, and in some areas they are proposing legislation to curb the practice of net metering. Their argument is that the people who use solar panels still depend on the grid for power when the panels fail or do not produce enough power, but they contribute nothing to the cost of maintaining the power grid.
In this case I have to agree with the power companies. The problem is that the power companies are generally required to pay retail cost for power from net metering. If a consumer is charged 20 cents per Kwh then that is what the power company has to pay the consumer. But power companies make money because they purchase power at a wholesale rate and sell at a retail rate. So the easy answer would be for power companies to only have to pay wholesale cost for the power they purchase through net metering.
Solar panel providers are claiming that the money made through net metering is one of the biggest selling points for solar panels. Obviously people are much more willing to pay for the installation of solar panels if they can recover a portion of the cost from net metering. Even though the cost of solar panels is dropping they are still quite expensive.
So this has become a classic example of both sides exaggerating their position. Power companies will claim they are going broke due to net metering, and solar panel providers will claim that any change in the net metering policy will destroy their industry. But there is a simple answer in the middle. Keep net metering, but only require the power companies to pay wholesale instead of retail price. this will have some effect on the sale of solar panels because they will not be as cost effective as before, but I think most the people who are willing to make the investment will still do it.
We have to move on from fossil fuels to renewable energy sources. Other countries like China are investing hiuge amounts of money in R&D for solar power. If the U.S. ignores renewable energy we will be in bad shape when the rest of the world passes us. With the oil companies finally admitting that fracking is the cause of a 500% increase in earthquakes in Oklahoma that technology is on the way out, and that had ethe main source of the U.S. energy production boom over the last few year.
Power companies, of course, are opposed to this practice, and in some areas they are proposing legislation to curb the practice of net metering. Their argument is that the people who use solar panels still depend on the grid for power when the panels fail or do not produce enough power, but they contribute nothing to the cost of maintaining the power grid.
In this case I have to agree with the power companies. The problem is that the power companies are generally required to pay retail cost for power from net metering. If a consumer is charged 20 cents per Kwh then that is what the power company has to pay the consumer. But power companies make money because they purchase power at a wholesale rate and sell at a retail rate. So the easy answer would be for power companies to only have to pay wholesale cost for the power they purchase through net metering.
Solar panel providers are claiming that the money made through net metering is one of the biggest selling points for solar panels. Obviously people are much more willing to pay for the installation of solar panels if they can recover a portion of the cost from net metering. Even though the cost of solar panels is dropping they are still quite expensive.
So this has become a classic example of both sides exaggerating their position. Power companies will claim they are going broke due to net metering, and solar panel providers will claim that any change in the net metering policy will destroy their industry. But there is a simple answer in the middle. Keep net metering, but only require the power companies to pay wholesale instead of retail price. this will have some effect on the sale of solar panels because they will not be as cost effective as before, but I think most the people who are willing to make the investment will still do it.
We have to move on from fossil fuels to renewable energy sources. Other countries like China are investing hiuge amounts of money in R&D for solar power. If the U.S. ignores renewable energy we will be in bad shape when the rest of the world passes us. With the oil companies finally admitting that fracking is the cause of a 500% increase in earthquakes in Oklahoma that technology is on the way out, and that had ethe main source of the U.S. energy production boom over the last few year.
![[Image: 4CV0TeR.png]](https://i.imgur.com/4CV0TeR.png)
