Duke Energy, North Carolina’s largest electric utility, just announced they are seeking to reduce payments for solar power from 11¢ / kWh to 5-7¢ / kWh. Article here: http://www.charlotteobserver.com/2014/01/22/4632118/duke-energy-to-seek-reduction.html
While this may seem like a minor issue, it isn’t. This would have a devastating impact on the payback period for residential solar. And it would make going solar uneconomical for residential customers.
For those not familiar with Net Metering: when a solar system generates excess power, the house electric meter runs backwards and credits build up. These credits are currently equal to the rate that consumers pay for electricity (about 11¢ / kWh). So, when the sun is not shining, you get power from the electric company at the same rate.
Seems like a fair trade: 11¢ / kWh for power from the sun; 11¢ / kWh for power from the grid.
Duke Energy is greedy and wants to discount power from the sun as follows: 5-7¢ / kWh for power from the sun; 11¢ / kWh for power from the grid.
Does that seem fair?
Solar power doesn’t pollute. Solar power is a renewable resource. And contrary to what power companies say, solar power doesn’t tax or strain their power grid. Excess solar power flows to your neighbors houses, providing power near its point of generation.