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> If provided back to the grid, the homeowner should get paid the spot price like every other generator, not full residential rates. Sorta. Because solar is di
by upofadown 11y ago
> If provided back to the grid, the homeowner should get paid the spot price like every other generator, not full residential rates.
Sorta. Because solar is distributed the economics related to transmission are different. If your solar panel is mostly powering your neighbours air conditioner then you are reducing peak load on the transmission system which can be a very valuable thing. If your solar panel is powering someones air conditioner one state over then there is no benefit to the distributed generation.
The catch is that the situation can change from hour to hour and day to day. The proper amount to pay the small distributed generators can be hard to determine.
- paulsutter 11y agoIf you really want to balance out the grid to account for distribution and transmission costs, you still need storage, and net pricing disincentivizes storage. Spot prices are already location-dependent, and yes a real distributed smart grid would do this on a micro scale, and a correctly designed smart grid would incentivize local storage. Which is what I think you mean by "hard to determine".