Not exact matches
Karl Rabago discusses how to fairly
compensate utilities and
customers who provide solar energy.
The state's three investor - owned
utilities, Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric, initially argued for fixed charges for solar
customers, but in the last month authored a new proposal that would preserve net metering but reduce the rate at which solar
customers are
compensated for the power they export.
There are many other variations, including what time of year the billing cycle ends, how much net metered
customers are
compensated for their excess energy, and how long credits can carry over (some
utilities allow credits to roll forward indefinitely).
Home to recurring, often acrimonious debates over how to
compensate rooftop solar
customers for the excess energy they send to the grid, Arizona regulators,
utilities and the rooftop solar sector are still struggling to settle on a method that can satisfy both sides.
Michigan
utility regulators have examined how to
compensate customers for solar projects backed by battery storage and create incentives to reduce electricity use when demand is highest.
This way, for instance, electricity
customers in coal - heavy Indiana, say, get a bigger refund than those in hydropower - heavy Washington (so as to
compensate for the fact that Indiana's
utilities will get hit harder by the carbon price).
Customers of these
utilities are
compensated for excess power exported to the grid.
Customers can also opt to sell all the power from their home solar system to the
utility and be
compensated for it.
Each
utility must
compensate customers with systems less than 40 kW in size for net excess generation (NEG) at the average retail
utility energy rate, defined as the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt - hour sales.
The
utility proposed
compensating solar
customers for their power at the wholesale rather than retail rate, or alternatively, adding a flat charge to their bills to account for the fixed costs they are not sharing.