In Nevada, solar power generating residences are upset for two reasons. The firs

Question

In Nevada, solar power generating residences are upset for two reasons. The first is their inability to sell electricity at the same rate they buy the electricity. The utility generates or buys electricity at a lower price and then sells it for more. If the utility has to buy the electricity for the same level as the selling price, there is no profit for them. The second issue is the fixed portion of the utility bill. The cost of grid is spread among all users and allocated as part of the variable rate. When a residence has no net usage, the cost of the grid then falls upon the other users who do not have solar panels. What are some options the power company can implement to make the cost allocation fair for everyone?

Explanation / Answer

1) The recovery of the cost of the grid should be separated and levied as a fixed charge from all the consumers, depending upon their connected load. This will mean that all consumers, whether they have solar panels or not, would have to bear the fixed charge period after period.

2) All other costs plus profit are to be recovered through a variable charge for the current drawn from the grid.

3) The current fed into the grid from the solar panel should be priced at a lower rate as is done now. Further, the consumers having solar panel can be charged a fixed amount for the facility to feed the current generated from the panel back into the grid.

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