THE UTILITY-SOLAR DEBATE OVER WHO PAYS

Solar firms, power companies battle over 'net metering'

Javier E. David, Oct. 13, 2014 (CNBC)

“…[N]et-metering—a process where consumers use renewable energy to generate their own electricity, then cut their bills by sending excess power back to the grid at retail rates…saves consumers money on utility bills, [and] is gaining popularity yet remains the subject of fierce debate. At least 43 states have laws making it easy for residents to save via the sun; still, utilities are pushing back against solar's rapid encroachment on the retail market…The Energy Information Administration notes that retail electricity is up nearly 3 percent per kilowatt hour in 2014 versus a year ago, with costs rising for 20 consecutive months…

"Power companies acknowledge that rooftop panels are forcing them to modernize the grid and rethink their business models. Additionally, residential units can help reduce strains on power systems during peak times and seasons…[But] net-metering was creating a classic ‘free-rider’ economic conundrum, where non-rooftop clients are ultimately paying more for electricity than net-metering clients. Certain costs, such as infrastructure and grid usage, are not being captured in what net-metering customers are charged…[U]tilities are waging a ground war in multiple states to get governments to reconsider subsidies and pass more costs on to net-metering clients…” click here for more

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