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Why Power Companies Should Like Grid Tie Solar Systems (Read 4290 times)
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Why Power Companies Should Like Grid Tie Solar Systems
Nov 9th, 2013 at 6:12pm
Here's something I found on the net and thought was pretty good thinking. I don't know if it's completely correct but it does make a lot of good points everyone should consider.

Of course the power companies don't think using common sense, there's always some twisted big corporate side angle they go by and they never seem to make sense so who knows...

"Grid-Tie energy economics: Here is why the (clear thinking) utilities love grid-tie. When you produce an excess 1 kW back into the grid, it really goes no farther back into the grid than the nearest 1kW load (your neighbor!). Now your power company still gets to charge your neighbor for the 1kw, but does not now have to generate 2kW worth of electricity at the generator to make up for the distribution losses.
And in avoiding generating 2 kW of power, they save more than 4 kW energy equivalent in coal that they can save for later. Often times, the utility might have to pay 10 to 20 times the normal rate of electricity from peaking-plants to meet peak demand. Grid-tie solar in that case is worth 10 to 20 times its value!

You win, you pushed your meter backwards 1 kW
Your neighbor wins (he gets the 1 kW at standard rates)
The power company wins (they don't have to burn the 4kw of coal)
The power company also does not have to buy that 1kW at 10 to 20 times the cost from a neighbor utility"
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