Solar Panel Payments Set Off a Fairness Debate
June 11, 2012
By Diane Cardwell| New York Times: In California’s sun-scorched Central Valley, the monthly electric bill can easily top $200. But that’s just about what George Burman spent on electricity for all of last year.
When the sun is shining, the solar panels on his Fresno condominium produce more than enough power for his needs, and the local utility is required to buy the excess power from him at full retail prices. Those credits mostly offset his purchases from the electric company during cloudy days and at night.
Mr. Burman says the credit system, known as net metering, is a “very nice benefit” for him. But it’s not such a good deal for his utility, Pacific Gas and Electric.
As he and tens of thousands of other residential and commercial customers switch to solar in California, the utilities not only lose valuable customers that help support the costs of the power grid but also have to pay them for the power they generate. Ultimately, the utilities say, the combination will lead to higher rate increases for everyone left on the traditional electric system.
“Low-income customers can’t put on solar panels — let’s be blunt,” said David K. Owens, executive vice president of the Edison Electric Institute, which represents utilities. “So why should a low-income customer have their rates go up for the benefit of someone who puts on a solar panel and wants to be credited the retail rate?”