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04/20/2024 05:34:56 am

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Electricity and Utility Companies Fighting Solar Energy

Solar panels

(Photo : Wikimedia Commons)

A new trend of solar-powered houses could put utilities in grim financial situations. Old electricity and utility companies are now putting up fights against solar energy to ensure their livelihood has a future.

Solar energy currently only powers 0.4% of electricity in the United States. However, the fact that is affordable is leading more and more Americans to place their own photovoltaic panels on their roofs and generate their own electricity.

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There are also "net metering" laws in 43 states including Washington, to sell their excess solar energy to the grid at retail prices.

According to a study from Lawrence Berkeley National Laboratory, it says that if nothing is done the increase of this trend, classic utilities will suffer. They continue, saying that if rooftop solar power gets at least 10 percent of the market, the earnings of utilities may decline as much as 41 percent.

This has led several electric utility companies to fight back against solar energy. One of the ways they are doing it is by triggering policy disputes about net metering laws and the usage of solar power in general.

Utilities companies are arguing that they should be able to charge rooftop solar owners a maintenance or connection fee of sorts.

They argue that even the solar-powered homes and businesses are still connected to the grid, not just because they need them when the sun is out, but also because the companies are earning less from the customers to just maintain and repair the grid.

They have also proposed the reduction of the price being paid for the excess solar energy of these households.

Solar advocates, on the other hand, argue for the number of benefits solar energy provides.

They state that is a clean and renewable energy source that does not pollute, nor does it help add to global warming. Thus, they are arguing that they should get a subsidy, and that net metering makes a lot of sense.

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