Rate-design wars are the sound of utilities taking residential PV seriously
blogs.berkeley.edu
blogs.berkeley.edu
Suppose you were a homeowner with solar panels installed. Right now, you're not paying very little because of net metering. Two years from now, the utility decides you'll need to pay monthly for grid connection.
It might then make sense to just cut the grid connection. Adding panels and batteries is the obvious choice, along with upgrading appliances with more energy efficient ones. Batteries are expensive, though they could be in your electric car.
One step further, if neighbourhoods or condo associations organize in micro-grids, big utilities are again stranded with useless assets.
It costs $10,000 to buy a battery system large enough to carry your whole house. And you're cycling the batteries every day, so you'd be lucky to get 10 years use out of them.
Even with the higher fixed charges mentioned in the article, it is still cheaper to connect to the grid than to buy the batteries.
For those who have suggested going off the grid, keep in mind that even in sunny California, we do have a rainy season. I've reviewed my friends' electric bills with them, and even those with quite large PV installations are still net consumers through most of the winter. To make it through, you'd likely need a generator (dirty, loud, expensive).
I think the bigger issue here is that people have made long-term commitments (20 year lease agreements) to finance solar installations, counting on net metering and a continual increase in power rates. If the utilities change the game, you're going to screw over a lot of fairly well-off consumers (vs. the mean), which doesn't usually go over well.
Infrastructure investments must now be done by HECO to allow for increased solar adoption - something that may not be in the best interest for the utility.
It appears that there are neighborhoods in Hawaii where the PV generation capacity is approaching the max load of the circuit.
Disclaimer: I have read WAY too much Home Power magazine over the last decade. I could design said system in about 20 minutes, part numbers and all. [http://www.homepower.com/]
I'm fairly confident this section about Germany is wrong - Germany has feed in tariffs which operate in addition to net metering, not as an alternative. That is certainly the case in the UK, whose system was modelled on Germany's.
Still, the basic point of this post is correct, net metering is an indirect subsidy, but there is an obvious technical solution: using the article's metaphor, to encourage people to eat their own zucchinis, or to use the solar energy on-site rather than automatically exporting it to the grid.
At present, PV systems export generated electricity directly to the grid, separately from the grid-connection used to bring in electricity which is consumed on-site, all of which is imported. Solar could fulfil normal electricity demand, and also be used to charge up storage heaters, or storage a.c. To the utilities, the house would look like any other, except with lower electricity demand.
I think that's the concern. It was all, "Ha ha look at solar, how cute and expensive." Now its more, "Its going to eat our lunch." and its only getting cheaper year by year.
"they want to further reduce the incremental energy price by implementing a fixed monthly charge on each customer, aimed at covering some of the costs of retail distribution, metering and billing."
That's straight out of the 1975 hippie classic "Ecotopia: The Notebooks and Reports of William Weston" - and is one of the Casus belli California cited when seceding from the union in that book.
Links for both below if anyone else is interested:
Whether I shave off my higher-tiered consumption by changing my thermostat, changing my lighting or by putting in solar, that lost high-profit consumption isn't the company's property, it's mine to do something else with.
Their bigger concern is net metering, by which I can sell them solar power during peak hours at their retail rate of, say, $0.45/kWh and then buy it back from them at, say, $0.06/kWh at night, or maybe even 6 months later in the dead of winter.
Not paying for power you didn't use is one thing, but using the power company's own transmission network to arbitrage its rates with no fee does seem long-term unsustainable. If the current rates reached their ultimate conclusion, the power companies would have to make massive, massive investments in storage systems capable of buffering months worth of demand, as their net revenues trend towards $0.
But I would be adverse to having to pay via a "connection charge" for what looks to me like a failed uprating of a nuclear plant, if I were I a Southern California Edison customer.
m = 300000 kg
g = 9.8 m/s^2
h = 10 m
The total amount of potential energy you can store is: m * g * h = 29400000 J = 29.4 MJ
The more customary unit of energy in electric circles is the kW hr. Converting a kW hr to joules gives: 1 kW hr = 1 kJ hr / s
= 1000 J hr / s * (60 s / min) * (60 min / hr)
= 3600000 J
= 3.6 MJ
So the potential energy stored in the parent's system is: 29.4 MJ * (kW hr / 3.6 MJ) ~ 8.17 kW hr.
Probably needs to be bigger to supply a decent sized household. Not to mention issues with inefficient conversion of potential energy to electricity, maintenance, and a backup plan for cloudy days.Seems outlandish, but the calculations predicted very high efficiency and comparatively low cost per MWh of storage.