As Small-scale Solar Expands, Utilities and Critics Clash
Aug 31st 2009NOLA SolarUncategorized
August 31, 2009
As Small-scale Solar Expands, Utilities and Critics Clash
Residential and small-scale business solar generation is growing by leaps and bounds, but critics allege that utilities are unfairly guarding their turf when it comes to smaller players hooking into the grid.
In 2008, consumers added 522 megawatts in solar generation, while utilities added a meager 96 megawatts, reports Newsweek.
In all, 2008 saw 33,500 rooftop solar systems added in the United States, up 63 percent over 2007. In California, the increase was more pronounced at 95 percent.
But as consumers and small businesses add solar to their rooftops, utility companies have been less than accommodating in allowing new hookups to the existing grid, critics say.
For instance, Colorado utility Xcel Energy sought to add fees to solar users, ostensibly to ensure they paid their fair share of transmission and generation cost. This caused rampant confusion and frustration on the parts of those who added solar panels, and finally, Xcel withdrew its proposal to add the fees, reports the Wall Street Journal.
In California, regulators are considering requiring utilities to buy power from smaller-scale solar renewable producers, those with capacity of one megawatt to 10 megawatts, under a feed-in tariff program, reports GreenTech.
PNM, the biggest utility in New Mexico, in July filed a request with the state to reduce incentives for businesses and homeowners to install solar panels. The utility argues that it exclusively has the right to own solar panels systems that are connected to its grid, according to Newsweek.
Meanwhile, attempts to establish a national feed-in tariff languish in the House of Representatives.
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One Response to “As Small-scale Solar Expands, Utilities and Critics Clash” –>
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Not to worry if more utilities follow the lead of Southern California Edison who has dropped their small-scale/residential rebate twice in the last six months. With their current rebate at only $1.90W AC the efficient homeowner is faced with payback in excess of 22 years. Certainly not a financially viable situation.
As incentives and rebates continue to drop we can expect to see a similar precipitous drop in the adoption of solar power at the residential level except for those with the financial resources to make a personal statement and/or those who are energy hogs purchasing power at top-tier rates.
With the current financial models available in Southern California the only viable approach for residential solar is to include PV with the initial design and build of new homes. It is not financially viable as a retrofit to existing high-efficiency homes purchasing power at Tier 1 & 2 rates.
Utility based incentives and rebates are yet one more means by which the utilities control and even limit the adoption of solar power in the residential market. This is an area that could benefit from a national renewable energy policy with proper oversight to ensure a level playing field is adopted that properly encourages the increased deployment of renewable energy – solar, wind, micro-hydro, etc. at the residential level regardless of the efficiency level and Tier rate level of the prospective site.