Archive for net metering

Crazy Utility Bookkeeping

Okay, here’s the thing. All over the USA, badly managed utilities with strong, well-financed political clout are doing their best to kill solar and other distributed energy systems. They claim that non-solar customers have to foot the bill for maintaining the grid that solar customers use at very little cost. Of course, this is completely false and ignores the financial benefits to utilities of grid-tied solar installations.

For example, I have a grid-tied 4.2 kW system on my roof. I received no subsides from anyone to install it. It’s my investment. As the “net metering” program now stands in Arizona, I’m saving around $600/year with my system. That nets me between 5 and 6% on my investment. That’s a good thing.

My little system also provides most of its electricity to the grid during peak energy demands – from 10 -4 each day. During that time, we use very little electricity, so most of it is flowing to the APS grid. There they can resell that electricity for anywhere between 6 cents to 26 cents per kilowatt hour for the time of use customers. That gives them a healthy profit because I’m giving them the electricity essentially for free. At the end of the year, if I’ve put more electricity into the grid, APS credits my account at less than 3 cents per kWh.

So, if I’m not paying the $20/month for the grid, APS is making more than that by selling the peak electricity I provide to them…free. Also, we residential and commercial solar owners help APS avoid the huge costs of increasing their power generation by building new plants to meet peak demands. That’s worth a lot to a utility. Of course, they do not share this with the utility commissions when they complain about the “costs of solar.”

Here’s an article about what’s going on in Nevada. You can bet that Arizona utilities are learning lessons from the anti-solar wins in their neighboring state.

Read Who Owns the Sun.

Here’s an overview about solar in Arizona.