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Submitted on May 25, 00:59 ET
USCA3 - Make residential solar profitable
Description

Here in California there is a law called Net Metering that requires the power utility to buy electrical power from a residential system at commercial rates - BUT only up to the dollar value of the power consumed by the residence.

 

While this is a fairly good deal for high electrical power users who can bankroll a big solar array to generate during the day to pay off heavy usage at night, it does not really provide much incentive to the average citizen.

 

A simple change in this law to require power utilities to buy ALL the generated power and pay the citizen for ALL the power in excess of their usage would have two huge incentives:

 

1) investment in a solar array would become a profit source for the citizen

2) to maximize profit, citizens would be motivated to be more efficient

 

These motivations would stimulate substantial investment in residential solar systems with a net power generated during peak usage times during daylight would still be a good deal for the power utilities instead of adding more capacity in centralized power stations - nuclear, coal, etc.

Arguments
1 of 2

A simple change in this law to require power utilities to buy ALL the generated power and pay the citizen for ALL the power in excess of their usage would have two huge incentives:

1) investment in a solar array would become a profit source for the citizen

2) to maximize profit, citizens would be motivated to be more efficient

Submitted by yragentman on May 25, 00:59 ET
4 Agree 0 Disagree
Incentives to home owners and businesses to invest in energy efficiency will boost our economy while providing considerable energy savings to consumers.

Submitted by Jamie Wall on Sep 30, 20:49 ET
1 Agree 0 Disagree
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Counterarguments
1 of 1
This law is simplistic. When you argue that the utilities should buy all the power generated at 'commercial rates'. What are the commercial rates? The hourly price of electricity in the wholesale market? That is something less than the customer pays at the meter - probably meaningfully less. I do agree that customers should be able to sell their solar generation into the grid but it needs to be regulate to insure reliability and sufficient capacity when the sun is not shining.

If the customer got the wholesale price of electricity for the excess generation, the projects would probably not be economical.
Submitted by jfburke619 on Oct 31, 23:04 ET
1 Agree 0 Disagree
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