Residential Solar Panels Are Net Win for Utility Companies, Analysis Says

Households and businesses with solar panels deliver greater benefits to utility companies than they receive through programs like net metering, according to an analysis of 11 case studies from across the U.S. by the advocacy group Environment New York. Net metering programs credit solar panel owners at a fixed rate — equal to or less than the retail price of electricity — for providing the excess power they generate to the grid. Utility companies have been fighting those credits in recent years, saying that solar panel owners don’t pay a fair share of grid maintenance and other overhead costs. However, all 11 studies showed that solar panel owners provide net benefits to their respective utility systems, Environment New York says, including reduced capital investment costs, lower energy costs, and reduced environmental compliance costs. The median value of solar power across all 11 studies was roughly 17 cents per unit, compared to the nation’s average retail electricity rate of about 12 cents.