Sunday, August 17, 2014

Where I stand - on consumer generated power

We recently had solar panels installed on our home and are loving it.  Expensive upfront, but I believe it will be worth it in the long run.  However, we are still connected to the utility company's grid for one primary reason:  Though the panels generate enough power to fit all our needs when they are producing fully, they will not always produce fully (cloudy and rainy days, nighttime, etc).  Of course during some of those times, they won't produce at all.
If we had enough batteries to store all of the excess, we could drop off the grid.  However, such a battery bank would be prohibitively expensive and would have to be replaced roughly every seven years.

I have two words for those who think that no tax or fee should be allowed to be levied on those using solar power or other means of generating their own electricity; the grid.

Consider what it would be like if milk were treated the same way.
You have a delivery service bring you milk every week.  The cost for that milk is four dollars per gallon, which pays not only for the milk itself, but also for bottling and transportation to your home.
But some people have their own cows and produce their own milk.  Some even produce more milk than they need.
Big government steps in and requires that the milk delivery service purchase anyone's excess milk for the same four dollars per gallon.  But, they have to come get the milk from you.  Such an arrangement would hardly be fair for the milk delivery service.

The power grid is expensive, it requires periodic repairs, new equipment, expansion to new areas, etc.  Consumers using electricity provided by the power company pays for that grid in the cost of the electricity that they use.

Solar customers continue to use the grid and when pulling from it, pay for it the same way that standard customers do.  However, when generating more power than they use, solar customers use the grid to send power back.  But currently, the utility company is required to credit those customers at the same rate they charge when providing that same amount of electricity. Effectively, this means the utility company is paying the solar customer to use their grid rather than charging them for the use of their grid.

I am a proponent of competition.  I believe competition benefits the consumer and should never be discouraged by government.  But it has to be fair.  The government should not be allowed to pick winners and losers; but that is what is happening with the current arrangement.  Failing to take into account the cost of the grid needs to be addressed in order for solar customers to compete fairly with the electric company.