Utilities move on distributed solar power plants

Some utilities are thinking small when it comes to solar power.

Utility Arizona Public Service on Monday submitted a proposal to install and own solar power systems on customers' rooftops in Flagstaff. Customers will pay today's electricity and hot water heating rates for the energy those systems produce over a 20-year period.

Duke Energy last Thursday gained approval for a $50 million project in North Carolina with a similar model. The utility will install and own solar electric panels at 100 to 400 locations and pay a rental fee to property owners.

By owning the systems and the power produced, the utilities can treat the distributed solar resources as a power plant that they can control.

The electricity production of solar panels tends to coincide with peak times of electricity demand. Instead of building a new power plant, or turning on costly and polluting auxiliary plants, utilities can partially meet peak load with the distributed solar systems.

Customers, meanwhile, can get solar energy systems without having to pay the large upfront cost, something that a number of solar start-ups are also doing with varied financing options.

"The project eliminates upfront costs of more than $10,000 to each customer, which we know from our experience has been a major deterrent to distributed solar systems here and elsewhere," Arizona Public Service CEO Don Brandt said in a statement. "We want to make solar energy affordable to everyone."

The $14.7 million pilot, called Community Power Project, is expected to generate 1.5 megawatts from 200 to 300 participants in Flagstaff. The plan also calls for about 50 solar hot water systems to be installed.

The electricity from the panels will be fed directly into the grid and be part of the utility's smart-grid technology program to efficiently manage the flow of energy across the grid. Arizona Public Service already has a few utility-scale solar power plants in the state, but distributed solar power could help the utility meet state mandates for renewable energy production, it said.

The solar panels from Duke's program, which had been scaled back from the initial $100 million proposal, are expected to collectively generate enough electricity to supply 1,300 homes. In a statement, Duke CEO James Rogers said that it's part of the utility's long-term strategy to diversity its power generation.

"We believe the future is a low-carbon world. The 21st century mission of our company is to decarbonize our energy supply and provide universal access to energy efficiency," Rogers told shareholders in a meeting last week.

[slingthepaint]

It is wonderful that the USA 'majority' is finally moving toward alternative energy sources. It is such a 'no brainer'. It is what we need to do for obivious reasons. I'm excited to see it unfold.

[kieranmullen]

It is good to see solar being pushed in areas of the country where there is plenty of sun and roofs to put them on top of. Plus I would imagine if they are raised off the rooftops they may slightly cut down on cooling costs (Citation needed) However this is not useful everywhere. (like in the Northwest) However something that all people can do is conserve here and there with energy efficient light bulbs, furnaces, cooling and appliances. Hopefully we will see luxium LED's available for streetlamps since LED's are also being used now for traffic lights, more energy conserved. Great!

[jkohut]

It also appears that distributing the solar arrays prevents the need to build out large distribution infrastructure that is preventing wind and solar in some other places. Great to see a utility thinking long term, instead of short term. I am betting that even though this isn't going to be perfect that there will be lessons learned that will add value to future projects of this sort across the country (and eventually the world). Electricity is at it's high demand in Summer and during the day. Seems like this model could be used in many states for a significant amount (i.e. yes, there will be some days when sun isn't shinning) summer seasonal peak generation. California could use this to build out it's infrastructure that seems to most frequently go brown in the Summer during peak demand.

[ecotony]

Simple, but effective. This will eliminate so much waste. This should be mandatory for all utilities in the sun belt.

SDG&E is unlikely to support this, as it likes to make money on its customers through distribution charges. I wonder if they would charge to move the power from the roof top to the kitchen. Probably.

[CaptainMooseInc]

Ecotony somewhat touched on it, but I think it needs to be brought more to light, per say.

This company wants to put solar panels on people's PRIVATE homes, and then charge them for it over twenty years. Okay, I can live with that. What happens after twenty years though? Does the electric company turn over the device to the owner of the home and let the person use the power generated from it without cost? Doesn't sound like it to me.

Also, will the power company assist in paying the extra fees associated with re-roofing the house? You're supposed to re-roof once every ten years or so. With a big solar panel in the way, no doubt it will cost extra, and I doubt that the power company will want to subsidize this.

These companies are starting to run scared because green energy is catching on. I can put my own solar panels on my roof, and a couple of small wind turbines built from a kit. That puts me off the grid entirely, and the excess energy I can sell back to the power company for MY profit. Why would I want them to come in and get to bank off of my land?

[Seaspray0]

What are you waiting for? BTW, can you post the maker of the wind turban kit?

[Cole_Brodine]

I think the opportunity that is really being missed here, is to have the power company use existing infrastructure to avoid customers having to own batteries. It would really be a great deal for the power companies, if they could buy excess power from home owners during the day to shave the peak off, and the home owners could buy the power they need at night from the power company.

You aren't going to see the power company disappear. There are too many large commercial and industrial buildings that just couldn't generate their own power requirements.

[Angmarr]

Solar = way of the future!

[solar_guy]

A power company in Texas is offering a similar deal. It's unique because Green Mountain Energy gets its energy from wind, but now they've found a way to add a solar component. See "Texas company offers retail rates when buying excess solar power" on SolarTechTimes.com: http://solartechtimes.com/?p=441

[ittesi259]

Southern California Edison already does this, just with commercial rooftops that are leased in an agreement. A 1MW location is already done and a 2nd is underway with plans to install 250MW. Lots of commercial warehouse roof space just sitting around, at least someone is using it :)