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Net metering doesn't make economic sense for utilities since it pays retail rates for production and doesn't charge for a connection to the grid. It makes sense
by dehrmann 4y ago
Net metering doesn't make economic sense for utilities since it pays retail rates for production and doesn't charge for a connection to the grid. It makes sense at face value, but once you dig into cases like someone only producing power or everyone using net metering, you realize you have to change the payout structure to match the utility's costs.
- hn_throwaway_99 4y agoAustin was the first municipality (I think) to use a "value of solar" rate, and as much as I'd like to use net metering from a home owner perspective, it's much fairer. It basically just pays homeowners a wholesale rate for their excess power. It's currently 9.7 cents per kWh, not much different that this proposed rate in CA.
- ezfe 4y agoMy power bill includes a delivery and an energy charge, both measured by kWh. The delivery charge is intended to pay for the actual electrical lines and maintenance, the point of issue here (providing a connection to the grid). If the issue is that a net-metered household isn't paying enough for the electrical lines, simply don't net-meter that part of the bill. Charge the full delivery charge per kWh drawn from the grid, without subtracting the amount sold back to the grid.