Social costs for solar utility companies

Do solar energy benefits outweigh the costs?

Benefits of solar photovoltaic energy generation outweigh the costs, according to new research from the MIT Energy Initiative. Over a seven-year period, decline in PV costs outpaced decline in value; by 2017, market, health, and climate benefits outweighed the cost of PV systems.

How did financing costs for solar PV projects evolve over the last year?

The analysis explored how the financing costs for utility-scale solar PV projects evolved over the last few years. We found that a combination of strong policies, underpinned by revenue support mechanisms, and improved technology maturity helped reduce financing costs for solar PV projects by 15-30% between 2015 and 2019.

Do solar customers affect utility finances?

But research shows that solar customers have a positive impact on utility finances because they reduce electricity demand and, therefore, the tremendous expense of adding capacity, says Sara Baldwin Auck, regulatory program director at the Interstate Renewable Energy Council.

How can utilities accommodate solar customers?

What's more, in order to accommodate solar customers, utilities say they must invest in new technologies that allow them to, for example, scale production up and down based on whether it's a sunny or cloudy day.

Are solar customers paying a fair share of transmission costs?

Editor's Note: This article also appeared in the August 2016 issue of Consumer Reports magazine. Editor's Note: This article also appeared in the August 2016 issue of Consumer Reports magazine. Utilities argue that solar customers aren’t contributing their fair share of transmission costs and are fighting back, says Consumer Reports.

Could solar be a smart move for utilities?

"We're just a few years away from affordable batteries, which—along with a backup generator —will allow existing and new solar customers to disconnect from the grid entirely." Which means that some day soon, consumers could defect from the grid en masse. The far smarter move for utilities would be to embrace solar, he says.