White House Chronicle

News Analysis With a Sense of Humor

  • Home
  • King’s Commentaries
  • Random Features
  • Photos
  • Public Speaker
  • WHC Episodes
  • About WHC
  • Carrying Stations
  • ME/CFS Alert
  • Contact Us

War on the Roof: Solar Power Is Encroaching

March 16, 2014 by White House Chronicle 2 Comments

 
A warning light is flashing for the nation's electric utilities — and it is getting more persistent.
 
The utilities, big and small, for- and not-for-profit, are facing serious disruptive technology. The old business models are in danger.
 
The unlikely disruptive technology that is causing the trouble is rooftop solar power.
 
Back in the energy turbulent 1970s, solar was a gleam in the eye of environmentalists who dared to dream of renewable energy. It looked like a pipe dream.
 
Very simple solar had been deployed to heat water in desert homes since indoor plumbing became the norm. Making electricity from the sun was many orders of magnitude more complex and it was, anyway, too expensive.
 
The technology of photovoltaic cells, which make electricity directly from the sun, needed work; it needed research, and it needed mass manufacturing. Hundreds of millions of dollars later in research and subsidies, the cost of solar cells has fallen and continues to go down.
 
Today, solar certainly is not a pipe dream: It is looking like a mature industry. It is also a big employer in the installation industry. It is a player, a force in the market.
 
But solar has created a crisis for the utilities.
 
In order to incubate solar, and to satisfy solar advocates, Congress said that these “qualifying facilities” should be able not only to generate electricity for homes when the sun is shining, but also to sell back the excess to the local utility. This is called “net metering” and it is at the center of the crisis today — particularly across the Southwest, where solar installations have multiplied and are being added at a feverish rate.
 
Doyle Beneby, CEO of San Antonio, Texas-based CPS Energy, the largest municipal electric and gas utility in the nation, said, “The homes that are installing solar quickly are the more affluent ones.” The problem here, he explained, is that the utility has to maintain the entire infrastructure of wires and poles and buy back electricity generated by solar in these homes at the highest prevailing rate — often more than power could be bought on the market or generated by the utility.
 
Steve Mitnik, a utility industry consultant, said that 47 percent of the nation's electric market is residential and the larger, affluent homes — which use a lot of electricity, and generally pay more as consumption rises — are a critically important part of it. Yet these are the ones that are turning to solar generation, and expect to make a profit selling excess production to the grid.
 
But who pays for the grid? According to CPS Energy's Beneby, and others in the industry, the burden of keeping the system up and running then falls on those who can least afford it.
 
The self-generating homes still need the grid not only to sell back to but ,more importantly, to buy from when the sun isn't shining and at night.
 
For some in the utility industry, net metering is just the beginning of a series of emerging problems, including:
 
  • Big investments are needed in physical security after the sniper attack last October at PG&E Corp.'s Metcalf transmission substation, which took out 17 huge transformers that provide power to California's Silicon Valley.
 
  • New investment is needed in cybersecurity.
 
  • Improved response to bad weather is a critical issue, especially in some Mid-Atlantic states.
 
Beneby believes the solar incursion into the traditional marketplace might be the beginning of more self-generation — such as home-based, micro-gas turbines — and utilities will and must adjust. He is something of a futurist and points out that in telephones, once a purely utility service, disruption has been hugely creative.
 
Environmentalists are as disturbed as the utilities. Some are calling the imposition of a surcharge on rooftop generators, as in Arizona recently, an attempt by the greedy utilities to stamp out competition. But many are seeking alternative solutions without a war over generating, and without punishing those unable to afford their own generation.
 
Brian Keane, president of SmartPower, a green-marketing group with solar-purchase programs in Arizona and many other states, has looked for cool heads to prevail on both sides of the issue. “I don't have an answer,” he said, calling for dialogue. Also the Edison Electric Institute, a trade group, has been talking with the Natural Resources Defense Council.
 
It isn't your father's electric utility anymore, or your hippie's solar power. — For the Hearst-New York Times Syndicate




 

Email, RSS Follow
Email

Filed Under: King's Commentaries Tagged With: CPS Energy, disruptive technology, Doyle Beneby, Edison Electric Institute, electric utilities, Natural Resources Defense Council, SmartPower, solar power

Comments

  1. Ron Winton says

    March 18, 2014 at 12:34 am

    Solar is a smart investment today. Pricing has dropped by over 75% in the past 5 years. Today it's possible to purchase an installed, name brand grid tie solar system for less than $3.00 per watt before any incentives and $0 down loans with tax deductible interest are now taking market share away from the old solar lease and PPA system rental models. 

    Reply
  2. Ron Winton says

    March 18, 2014 at 12:34 am

    Solar is a smart investment today. Pricing has dropped by over 75% in the past 5 years. Today it's possible to purchase an installed, name brand grid tie solar system for less than $3.00 per watt before any incentives and $0 down loans with tax deductible interest are now taking market share away from the old solar lease and PPA system rental models. 

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

White House Chronicle on Social

  • Facebook
  • Twitter
  • Vimeo
  • YouTube
From Louisville to Ukraine, Two Women and a Partnership of Help

From Louisville to Ukraine, Two Women and a Partnership of Help

Llewellyn King

Today will be a terrible day in Malawi, where more than 500 died in Cyclone Freddy last month, and everything is flattened. Today will be a terrible day in Turkey and Syria, where thousands died in the Feb. 6 earthquake and cities are piles of rubble. And today will be a worse day in Ukraine, […]

The Next Big Thing for Electricity — the Virtual Power Plant

The Next Big Thing for Electricity — the Virtual Power Plant

Llewellyn King

America’s electric utilities are undergoing a revolution — one which is quiet but profound. Since Thomas Edison set the ball rolling, utilities have made electricity in a central station and dispatched it down a line to a consumer. It was a simple transaction: manufacture, transport, sell. Now it is getting more sophisticated. So long a […]

Irish Exceptionalism — They Punch Above Their Weight

Irish Exceptionalism — They Punch Above Their Weight

Llewellyn King

The Irish punch above their weight. That is why worldwide, on March 17, people who don’t have a platelet of Irish blood and who have never thought of visiting the island of Ireland joyously celebrate St. Patrick’s Day. That day may or may not have been when St. Patrick, Ireland’s patron saint, died in the 5th century. The […]

If We Keep Electrifying, We Will Run Out of Power

If We Keep Electrifying, We Will Run Out of Power

Llewellyn King

If you punch in “outage map” in a search engine, you will get a series of maps, ranging from the entire country to state by state and even smaller jurisdictions. These maps show electrical outages across the United States and territories, and they are within 10 minutes of actual time. The data come from the […]

Copyright © 2023 · White House Chronicle Theme on Genesis Framework · WordPress · Log in