FW: U.S. Solar Industry Anticipates Utility Backlash Over Net Metering | Renewable Energy News Article

Another upcoming reason to like off-grid investments.

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U.S. Solar Industry Anticipates Utility Backlash Over Metering By
Christopher Martin, Bloomberg September 13, 2012   |   13 Comments

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NEW YORK CITY -- The growing use of rooftop solar systems are spurring
concern that U.S. utilities may decline to purchase power generated by the
panels, according to the Solar Energy Industries Association.

Utilities are required to buy power generated by solar panels installed on
consumers' homes under so-called net- metering policies, an arrangement that
may become less viable as solar systems become more common, said Rhone
Resch, chief executive officer of the Washington-based trade group.

California, the largest solar market, capped the amount of panels utilities
are mandated to connect to their grids and other states are considering
similar policies. Some utilities see the requirement to buy solar power from
every rooftop system as a threat to their profitability, Resch said.

"Net metering works for us now, but we're going to see a backlash from
utilities as solar penetration increases over the next few years," Resch
said yesterday in an interview at the Solar Power International conference
in Orlando, Florida.

California regulators capped the amount of rooftop solar that may be
connected to the grid at 5 percent of a a utility's power needs, and is
studying the long-term impact upon their profits. Other states may consider
similar actions, said Tony Clifford, chief executive officer of
Standard Solar Inc., a closely held developer based in Rockville, Maryland.

'Utility Pushback'

"I'm really concerned about a utility pushback on net- metering," Clifford
said in an interview. "What we need is an honest assessment of the true
costs and benefits of managing distributed generation and I don't think
we've seen that yet."

Utilities are considering ways to offset the cost of buying solar, including
Sempra Energy's San Diego Gas & Electric, which proposed a fee for
residential solarcustomers, said Aaron Hall, president of the San
Diego-based developer Borrego Solar Systems Inc. Regulars blocked the
proposal in January.

"That would have made almost every installation lose money and prevent new
projects from getting financing," Hall said.

Developers installed 98.2 megawatts of residential rooftop solar panels in
the second quarter, according to SEIA.

Copyright 2012 Bloomberg 
 
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