Renewables From the Bottom Up

While Germany empowers citizens, the US protects corporations.

By Craig Morris

If you live in the US, do your power provider a favor: spend $20,000 putting solar panels on your roof. Then your poor utility will not have to buy so much power on the expensive spot market. Your utility may even thank you by taking some of the solar power you generate off your hands for free!

Not tempted? Obviously, this arrangement (called "net-metering") is good for utilities, and we would expect solar advocates to oppose it. Just do the math: the utility benefits from your investment, not you. In net-metering, you offset your consumption; the power meter sometimes runs backwards. Your retail electricity rate may be around 10 cents, but since you are generating most of your power in the afternoon your utility may be saving big money by buying from you rather than on the spot market during peak consumption. In other words, your solar panels not only offset your own consumption, but also peak power for your utility. If you got paid the spot price for your solar power, your investment in solar might eventually pay for itself. At the retail rate, it never will. Continue reading on the Gaianicity website and then return to post a comment.