Comment Let's avoid FUD from both sides, please (Score 5, Insightful) 374
Okay, I'm going to have to critique the article a bit. Please note that I live in Alaska and almost purchased solar panels myself - it's just that the distributor I looked at purchasing the panels from made break-even assumptions that not even I could swallow. It definitely doesn't make sense to pay somebody to install them up here.
Anyways - very first paragraph, 'ensure utility companies pay for unused power that is routed back into the power grid - a practice known as net metering'. To my knowledge ALL power companies are willing to pay for the power returned to the grid. However, they often want to pay utility rates for it, not retail. To put it another way, let's say you're a biodiesel producer in your spare time, and every so often you have some surplus. Do you expect the local biodiesel station to purchase your fuel* for the pump price? Or are they going to want to pay the price they get it from their distributor for?
Now, the actual situation is quite a bit more complicated- electricity isn't really stored, and the marginal cost per watt during peak times can be quite a bit higher than what you're charged as a home customer, without time cost considerations. Electricity costs tend to be a bit higher during the day, so the argument has been that panels tend to displace expensive power, not cheap power. But as market penetration increases, it can change the paradigm that utilities operate under, and unlike most industries, if it's doing it's job the power company IS looking 40 years ahead.
The argument is that grid-tie solar users are often close to even production, and due to net metering aren't paying the maintenance costs of the wire they're using, while still not being a significant contributor to the grid. They effectively use the grid as a giant battery.
So, while the answer for any given solar install is 'complex', on average net metering is a subsidy. Whether it's a worthy subsidy, that's up to individuals to decide.
The problem with rooftop solar being 'on par with prices for common fossil-fuel power generation in just two years' is that we may face a situation where power becomes MORE EXPENSIVE during the night(and late evenings when people are still up). Again, are we talking about utility, IE right at the plant, or retail, after it's traveled through potentially hundreds of miles of power line? Because the former is around $.02/kwh, the latter more like $.08. Browsing the citing document, not only are they using retail, but they're not predicting the price drop he predicts. They're predicting it'll drop below standard retail prices. Which includes grid maintenance.
Disconnecting from the grid is possible(in most areas), but it substantially increases costs to the solar installer to put in a battery bank and often even a generator. Operating the generator is obviously, much more expensive than buying power from the electric company.
If made into law, the Kansas legislation would allow utilities to pay solar customers using net metering less than the retail rate of electricity. In turn, utilities could use the excess electricity that customers were turning back to them and sell it at the retail rate.
So... Like how a regular business operates? I know, lose a little on each sale, but we'll make it up on volume!
Anyways, I support more solar power, but we have to realize that we'd see some drastic changes if it ever exceeds 20% of electricity generation here in the States. It's not anywhere near that yet, but like I said, the power companies are looking ahead. Heck, we might face a future where daytime power is much 'cheaper' than night time, and there's a big push for people to charge their vehicles at work. Of course, that means all those home panels will be producing electricity that has to transition the grid... Please note that I'm looking 10-20+ years into the future here.
As a bigger fan of electric vehicles, I can't help but imagine a system where 'retired' EV batteries are used to make homes, if not entirely self-sufficient, at least only really dependent upon a 'neighborhood grid'.
*Let's say you're good at it and it's identical to their normal product.