The Natural Resources Defense Council and the U.S. utility industry’s trade group are jointly calling for a new rate structure to account for customers that generate their own power with rooftop solar systems. “We need the grid and need to improve it in ways that support clean energy and distributed resources,” says Nathanael Greene, director of renewable energy policy at the NRDC in New York. Owners of rooftop solar panels “must provide reasonable cost-based compensation for the utility services they use,” says both groups. In exchange, utilities must simplify the process of connecting systems to the grid and compensate owners “fairly for the services they provide.”
Under the current policy, known as net metering, utilities must purchase excess electricity generated by customers’ solar panels. Both groups want that policy to continue, with a new mechanism that would cover utilities’ fixed costs. Still, they agree that changes to utility rate structures would improve energy-efficiency programs and expand rooftop solar. They recommend allowing utilities to recover the costs of maintaining and improving the grid in a way that’s not tied to the amount of electricity they deliver to consumers.
“We want regulators to decouple grid charges from volumetric consumption,” Greene said. “Then the utilities can’t use net metering as an excuse for the high fixed-cost charges they want.”
Comment from S. Levy:
It is my personal belief that ratepayers are going to be supplied by smart metering in the near future. As a result of smart metering, the electric utility industry will begin setting different rates based on their peak loads during the day and evening hours. The purpose being to lower the peak demand that occurs between the hours of 5 pm and 9 pm. So, they will charge the consumer more during the peak hours to reduce the peak load and with it, the resources to produce and deliver that higher power level.
It’s all about demand charge management and that demand charge management can result in a 10 percent to 20 percent bill savings. That is if the homeowner controls the use of high wattage appliances and home electric heating and cooling of the home and their water heater. Automation is available today that can control these energy users.
******DO NOT INSTALL SOLAR PV ON YOUR SIDE OF THE ELECTRIC METER WITHOUT CONTACTING YOUR DISTRIBUTOR**************