By: Myles Johnson
A new and competitive power source is emerging by way of solar energy. At first just being a nice alternative for other electric utilities making up only 0.4 percent of electricity in the United States; solar power was not perceived as a competitor. Yet tens of thousands of Americans are installing photovoltaic panels on their roofs generating their own power. Simultaneously 43 states have net metering laws that allow solar powered households to literally sell their excess energy back to the grid at retail prices.
This is when it becomes a problem for older energy companies, a study done from Lawrence Berkeley National Laboratory argues without policy changes to net metering this trend of solar power could utilities in significant financial straits. Stating that if rooftop solar were to acquire 10 percent of the market over the next decade utility earnings could decline by 41 percent. So to avoid this impending fate companies are pushing for reforms that will at least slow down the growth of rooftop solar power. Although conservative groups are working against solar power, several Tea Party groups are now defending solar as well, suggesting that they would allow solar to expand but also ensure that there's enough money to maintain the existing grid.
The first major battle over net metering was back in 2013 concerning Arizona Public Service and their offer of 50$ per month for all households with rooftop solar. This action received a lot of backlash from solar companies and regulators pared the fee back to 5$ per month. Other disputes over net metering are occurring in other states as well such as, Wisconsin, the largest utility state. Wisconsin is considering charging all homeowners a higher price to connect to the grid. The preemptive tactics by the state and these companies are very similar to ones talked about in class in reference to autonomous cars. Once these buffers are resolved though the wave of technology to come cannot be stopped.
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Implementing sustainable systems is certainly a step in the right direction for our society. This transition is similar to the switch from gas cars to electric cars. Although, I do understand the financial concern that the matter creates.
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