The conventional wisdom is that rooftop solar stresses the grid, and therefore net metering at retail prices amounts to a subsidy extracted from non-solar custo

The conventional wisdom is that rooftop solar stresses the grid, and therefore net metering at retail prices amounts to a subsidy extracted from non-solar customers to the benefit of rooftop solar owners. This, however, is a myth (reinforced at every turn by the incumbent monopolies). Rooftop solar tends to overproduce on the hottest days, which also happens to be the time when the grid is overloaded by air conditioners running at full throttle. In effect, rooftop solar is at maximum production exactly when the grid needs it the most, thus providing very valuable load smoothing. This greatly benefits utilities, since they don’t have to spend as much on peak-generation capacity. There is ample evidence that utilities underpay for these benefits [1], while their profits rapidly increase. Three major Nevada casino operators “have expressed vocal criticism of NV Energy for generating huge profits over the past years and not lowering rates for customers of Nevada Power. [...] NV Energy’s profits increased 27.7% in 2014, yet the supplier has not introduced any electricity rates breaks to its customers since it was acquired by Berkshire Hathaway.“ [2] Over the short term, the incumbents will get their way by flexing their political muscle, but this will only delay the inevitable. Electricity spot prices are at their highest during daytime, while people are at work and their solar generators put power into the grid. Utilities want to pay wholesale for this power, then turn around and sell it to non-solar consumers at the top rate. People return from work as their solar generators become inactive, so they will have to buy power at retail rates. For now, utilities will win both ways. But what this means is that as storage prices drop, it will be more economical to invest in storage capacity in order to capture the valuable power during the day and use it during the night. This will deny utilities the demand-smoothing services that they currently enjoy, so they will have to increase their capex for peak generation, leading to higher rates for everyone else, which in turn will encourage _more_ customers to install solar and storage, etc. Soon after, people will start disconnecting from the grid altogether; welcome to Uber Energy. Tectonic plates accumulate tension slowly, but they rearrange quickly. [1] http://cleantechnica.com/2015/09/01/review-of-net-metering-studies-finds-utilities-underpaying-for-solar-electricity/ http://cleantechnica.com/2015/09/01/review-of-net-metering-s... [2] http://www.casinonewsdaily.com/2015/11/26/major-casino-operators-leave-nevadas-main-electric-utility/ http://www.casinonewsdaily.com/2015/11/26/major-casino-opera... [reposted from a previous discussion on the topic because the thread had dropped off the front page when the comment was written]