Here's a youtube video if you haven't heard of the phenomenon before. Basically, there's advocacy groups on either side of this argument so who is right?
https://youtu.be/dPfpa2KqYk0
My understanding of the 'problem' is this (correct me if wrong!)
- Utility companies claim using net metering, houses with solar panels aren't paying their 'fair share' towards grid maintenance
- The credits given for power exported to the grid under net metering are 1:1 at retail value, meaning the power isn't bought at a wholesale rate. Therefore it's unable to be marked up.
- This means the power company loses out on the markup, and their profit
- Given that the grid has fixed maintenance costs and some of this markup is used to maintain/upgrade the grid, utilities argue solar consumers are therefore not paying their fair share.
My questions to you…
- How significant is the issue of non-solar users bearing costs due to solar adoption?
- Are the equity concerns valid, or is the problem overstated?
-
What solutions (technical, market-based, or policy-driven) do you think are most effective? (e.g moving to net billing like California, though this is unpopular I know!)
Keen to understand. What do you guys think?
Source: Ash_Drive