What Energy Companies Don’t Want you to Know: Solar Power Saves you Money

Solar panel adoption among United States homeowners has grown exponentially over the past decade, and it’s easy to see why. With the environmental benefits of producing clean energy and the widespread availability of solar manufacturers, installers and financers providing low-interest solar power loans, it’s never been easier to outfit your home with a fancy new photovoltaic system.

Beyond the fabulous carbon-footprint-conscious aesthetic that solar panels bring to any home, photovoltaic systems can also reduce the drain on your wallet, saving the average homeowner thousands of dollars in energy bills and loans a year.

Here’s the rundown: when solar power systems are producing a surplus of energy, the system feeds power into the utility grid. Once the sun sets and homeowners’ energy usage rises, the home draws power from the grid that serves the utility’s customers in that area.

According to net energy metering laws, solar customers are credited for any energy they feed into the grid during the day, and this offsets the price of energy consumed at night. Not only are solar customers using less electricity, but the costs of the energy they do consume is offset by credits from any surplus energy produced by panels.

Net metering policies vary state by state, but most state laws feature a monthly-rollover of energy credits, a minimal connection fee, and a monthly payment for any energy taken from the grid at standard rate. Most solar energy customers end up paying significantly less for energy a month than their less environmentally-inclined brethren—offsetting the cost of initial loans or payments—and utility companies are less than thrilled about it.

Upset that their longstanding monopoly over the local energy supply is threatened, utility companies around the country are now fighting back against solar customers.

Utility companies are claiming that solar customers pay so little for their energy that they no longer cover the cost of maintaining the grid. Utility companies argue this cost will be passed on to non-solar customers. Solar power supporters argue that photovoltaic systems help reduce the demand on utility grids, and deny allegations of not paying their fare share of utility costs.

Now that solar installations are within the price range of the average consumer with leasing, solar loans and other options readily available, distraught utility companies are looking to charge solar customers a higher rate for their energy usage than the average customer.

It is unclear how the utility companies will fare in their ongoing battle with solar. But as the number of U.S. homes equipped with solar installations nears the one million mark, energy companies will have to act fast if they want any chance of stopping the solar explosion.

Natalie Benoy is a renewable energy writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Elements Capital Group. Follow on Twitter