LANSING – Utility customers with rooftop solar systems, known as solar distributed generation (DG), are providing economic support to Michigan’s electric grid and should not be overcharged to support it. That is among the findings of an analysis by the Institute for Energy Innovation, “Solar Energy in Michigan: The Economic Impact of Distributed Generation (DG) on Non-Solar Customers.
The report was completed in advance of a study to be undertaken by the Michigan Public Service Commission (MPSC) required under Michigan’s new Clean and Renewable Energy and Energy Waste Reduction Act.
“The vast majority studies on the value of solar conclude that customers with solar DG systems who participate in ‘net metering’ programs represent a net benefit to all utility customers and the electric grid as a whole,” said Dan Scripps, president of IEI. “While they receive credits that reduce or eliminate their monthly utility bills, the energy they generate provides real benefits to the power system and should be considered when evaluating the impact of solar DG.”
Under the new law, which took effect April 20, the MPSC is tasked with developing a new rate structure that considers whether net metering customers are able to avoid paying for grid support services on which they rely and, therefore, are being subsidized by non-solar customers. The new rate structure must reflect the equitable cost of service that ensures fairness for ratepayers, with and without solar DG systems.
“Our report found that customers with rooftop solar systems are not only paying their fair share, they’re actually helping to reduce costs for their neighbors as well,” said Scripps. “Specifically, the benefits of solar DG exceed the retail cost of electricity and the value of solar is greater than the compensation solar DG customers receive under net metering programs. It’s hard to justify adding additional costs to those already providing more benefit than they receive.”
In an effort to support the development of the MPSC study, IEI conducted a meta-analysis that both summarized national data related to evaluating the value of solar to the overall grid, and outlined best practices for compensating net metering customers. The IEI evaluated more than 40 solar value studies from across the nation as well as nine additional studies not included in any previous meta-analyses.
To read the rest of this story, click on https://techcentury.com/2017/06/30/new-report-rooftop-solar-provides-benefits-to-michigans-electric-grid/
