WetEV wrote: ↑Fri Dec 02, 2022 7:02 am
I'm sure you are correct. I suspect the old billing rate was just wrong.
The issue should be more like: "what is fair?"
If someone can product 100% of their monthly kWh use, and use the grid for free storage, is that fair?
What should the billing rate of storage be?
What is the utility level cost of storage?
I can't speak for all states, but the one I live in use to offer over +50% over your retail rate for solar power production. So if 1 kWh of power cost $0.10 back then, they (the electric utility) might pay you $0.15 per kWh if you had an abundance of power on a sunny day. A long time back, the utilities changed to only offering the same retail rate for your solar. So any extra power you produced just means it will take much longer for the solar installation to pay for itself, if ever. The problem is, the companies that *installed* said systems never told the customers about this rate reduction, so instead of an installation paying for itself within 5 to 7 years, it jumped up to a level that would never pay for itself because the rates were the same and you are basically losing money every year instead.
First problem, people saw these as *income* solar projects. Second problem, companies were still installing said installations and lying to the customer about how it was *ever* going to pay for itself. The only installation that makes sense now is a solar + battery to run the actual things in your home to reduce your electric bill or just eliminate it completely instead. I followed the latter route for my solar installation +12 years ago, I use it power the home and didn't spend the extra money on tying it into the grid to sell power. I did track how much money it saves on my electric bill and it paid for itself after only 5 years, the last 7 years has basically been free power and very low electric bills for times when the sun doesn't shine or the wind doesn't blow as well as I would like (I use a dual solar + wind turbine setup).
So fair is what you agree to really. If someone knows ahead of time that their solar installation is a money loser and still want to do it, that's fair.
As for free grid storage, putting out extra power to the grid might be a type of virtual storage in terms of the money spent, but technically we all know it's not really being stored anywhere, your neighbors are using it the moment it is created.
What should the billing rate be? Whatever is agreed upon, that's the only fair way.
Just my $0.02, I'll see my way out of the rest of this topic...