Scientific American: Utilities are conducting a "propaganda war" against solar

1

Quick Take: I recently told you how Minnesota's solar formula could distress utilities, since it claims they should be paying MORE than the retail rate to net metering customers.

 

Now Scientific American has weighed in on the topic, in a lengthy and well-researched article that not-so-subtly blames utilities. Although it explains both sides of the controversy, it refers to utilities with phrases like "old guard" and "malice" and "propaganda war." Skim the summary or, better yet, read the full article, which predicts that utilities are losing the battle. – Jesse Berst

 

Americans are battling over sunshine. A regulatory skirmish has broken out over rooftop solar, which threatens utilities.

 

In Arizona, tens of thousands of homeowners have installed photovoltaic panels. Net metering laws require the utility to buy excess power produced by the PV panels. With these homes making their own electricity, utilities lose their best customers. They also have a dwindling base for sharing the cost of maintaining the grid. Utilities warned that the lost revenue from solar-powered customers will mean rate increases for those without solar panels.

 

In response, utilities are launching what scientific American calls a "propaganda war" against solar.

 

The solar cost battle is already won

David Crane, CEO energy company NRG, says: "The solar cost battle has been won. It's all friction costs." He means that the cost of solar panels has already dropped to the point they theoretically make solar as cheap as grid electricity. By "friction" Crane means the cost of finding the panels, the installer, and then filing all the paperwork. These costs double the cost of the residential solar system.

 

But the cost to homeowners is near zero in some areas, thanks to solar companies that pay all the upfront costs in return for a long-term contract from the homeowner. That contract gives them a monthly bill that is less than their current bill from their utility.

 

The article also includes a lengthy description of the attempt by Arizona Public Services to find an equitable alternative to the current net metering regulations, and the solar progress in other states.

 

Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.