03 May '12, 3am

California Utilities Balk as Home Solar Producers Near 5 Percent Limit

You’ve missed a few important points, first when pv is available is exactly when demand is peaking, PV output is NEVER begging for a taker. Second is that in the afternoon at peak demand the wholesale price of electricity is regularly 50c to $1 per kwh and sometimes peaks far higher then that, the way electricity is priced all generators receive the peak market price for their power, ie on a hot afternoon coal power plants will be payed upwards of $1 per kwh if that’s where the market pricing goes, the only people who don’t get this advantage are customers with small scale distributed generation who just get paid the retail rate. So even though solar produces peak output on hot sunny summer afternoons when demand and cost to utilities is highest the utilities only have to buy it at the base retail rate, this means that utilities are quite often getting a bargain when they ...

Full article: http://cleantechnica.com/2012/05/02/california-utilities-...

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