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Re: Sounds like power compaines don't like solar energy.


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Posted by Andy Martin on January 08, 2016 at 15:48:55 from (209.213.149.120):

In Reply to: Sounds like power compaines don't like solar energy. posted by Geo-TH,In on January 08, 2016 at 15:28:40:

Did you read the article? Solar power has been the subject of tax credits to make an unprofitable system workable. The article clearly states the utility does not want to pay retail for extra power produced. Why should they, they still have to have generating capacity in place to provide power for as much as consumers want as soon as they get home and the sun goes down. The largest and most efficient steam generating plants have to be hot and spinning (called spinning reserve) in order to respond to momentary increases in demand.

During bright sunny days when few people are home the utility must buy the extra power when they don't need it. They still have to have capacity ready as soon as the sun goes down. It is very reasonable for them to only pay retail price for extra energy they buy, retail price includes the cost of equipment and fuel. It would even be more reasonable for them to pay only the cost of fuel they save by cutting back due to solar. I'm sure the wholesale cost, the price they would pay another utility, is more than their basic fuel cost.


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