Why "cheaper" solar raises costs. Part II: The hidden costs of residential solar - Climate Etc.

How Residential Solar Rate Structures Work

Residential solar systems, typically tied to net metering, let homeowners generate and sell power in ways that appear cost-effective:

• Serving own needs: Solar panels produce during sunny, low-demand periods (e.g., midday spring), letting homeowners avoid utility charges. These charges are usually a flat rate based on average costs. (Note: The utility backs them up when panels don’t produce enough electricity.)
• Selling excess power: Surplus power goes to the grid, with net metering crediting it at rates varying by state. Typically, these payments exceed the energy’s value to the utility during low-demand periods.
• Hard Times: At night, on cloudy days, or during peak demand (e.g., summer evenings), panels produce little. Homeowners buy grid power at flat rates, which don’t reflect the high costs of peaking plants...