Putting up solar panels may be a good thing for the environment, but these days it’s also a smart financial move.
The cost of solar power is falling rapidly--down 60 percent in just the last three years.
Solar is changing the way we get our electricity - and that means traditional utilities are being forced to adapt.
We continue our Solar Challenge series. Inside Energy Reporter Dan Boyce begins with a Boulder, Colorado couple on a particularly hot and sunny day.
"These are the kinds of days in Colorado you go oh my gosh, (laughs) we should have solar. because it’s sunny, it’s bright, it’s blue...”
Barb Gifford and her husband Don Dugger hop off the scorching asphalt.
“I’m gonna stand on the grass cause I didn’t put any shoes on (laughs)."
Getting a better view of the new solar system going up on their home. A couple of guys shuffle around up there, attached to the roof by retractable safety harnesses. Drilling in mounting brackets for the panels.
For Don and Barb, with the price of solar where it is, and the current state of tax incentives, the time feels right.
“Definitely cut our dependency on Xcel down dramatically by doing it that way…”
Xcel Energy is their utility. Don thinks these panels could provide 80 percent of the power they use. That’s power they won’t have to buy from Xcel. In fact, Xcel has to buy excess power from them! It’s called net-metering and it’s where the problems start.
“That’s a concern.”
Xcel VP of Policy and Strategy Frank Prager.
"That’s why we’re trying to address it today before it gets to be too big a concern.”
OK, let’s explain for a sec. If you put solar panels on your roof, like Don and Barb, most likely you’re still going to be hooked up to the traditional electric grid.
“To provide them with backup energy.”
Backup power, so you can still turn on the TV if the sun isn’t shining. But if the sun is shining, most state laws require your utility to pay you for any extra power you’re feeding back onto the grid.
State Public Service Commissions usually set these net metering rates. Problem is - utilities usually say those rates are too high. Plus, Xcel’s Frank Prager explains this also means solar customers aren’t paying for their share of maintenance costs to the entire electricity grid
“Which is going to harm customers that aren’t participating in this problem.”
Rooftop solar’s share is still tiny. Well under one half of one percent in most of the country. But, Since 2006, the rate of rooftop solar panel installations has increased 16-hundred percent.
Utilities are worried. An influential trade group - the Edison Electric Institute says this trend --more customers selling TO the utilities, not buying from them - it’s not sustainable. The institute released a report last year saying the industry should back measures discouraging more rooftop solar. And that is happening around the country.
Making local TV news in sunny Arizona.
“APS was waging a multi-million dollar campaign to dramatically boost charges on solar customers.”
APS--or Arizona Public Service. That utility fought hard to put in place big fees on rooftop solar customers late last year.
COMMERCIAL: “At Xcel Energy, we believe in solar energy in a big way, in the right way….”
For Xcel it’s meant a major ad campaign.
COMMERCIAL: “Xcel Energy is working to develop large-scale solar projects…”
Big fields of solar panels controlled by them, not by the consumer. Arjun Makhijani is the President of the Institute for Energy and Environmental research, a group which studies how to bring on more renewable power. He says traditional utilities are facing a disruptive challenge to their way of doing business.
“They’ve grown up with guaranteed rates of return...they’re not used to new things coming along that would challenge this very comfortable state of affairs.”
With the brand new solar system going up on his home in Boulder, Don Dugger doesn’t have too much sympathy for his utility, Xcel energy.
“Xcel either changes to match technology or they’re gonna get left behind.”
The way he sees it, battery technology for storing solar is coming along fast enough.
“We won’t need the grid at all.”
That’s probably far-fetched, but changes are coming. And even as utilities try to fight rooftop solar some are also preparing for its continued advance.