Solar panels are getting more efficient and the cost to produce them are decreasing by the day, already solar is cheaper than coal. Yet, due to previous policies and outdated economic models the real value of solar is underappreciated. While people wake up to the reality around the economics of solar the rest of us can call attention to the non-economic benefits of switching to sustainable power generation. Things like grid resiliency, if every home has solar panels then blackouts will become a thing of the past.
“Anyone who puts up solar is being a great citizen for their neighbors and for their local utility,” Pearce said, noting that when someone puts up grid-tied solar panels, they are essentially investing in the grid itself. “Customers with solar distributed generation are making it so utility companies don’t have to make as many infrastructure investments, while at the same time solar shaves down peak demands when electricity is the most expensive.”
Pearce and Koami Soulemane Hayibo, graduate student in the Michigan Tech Open Sustainability Technology (MOST) Lab, found that grid-tied PV-owning utility customers are undercompensated in most of the U.S., as the “value of solar” eclipses both the net metering and two-tiered rates that utilities pay for solar electricity. Their results are published online now and will be printed in the March issue of Renewable and Sustainable Energy Reviews.