Therefore, customers are only billed for their “net” energy use. This policy is advantageous to the system owner since it effectively values solar energy at the retail rate. If the home is net-metered, the electricity meter will run backwards, thus providing a credit against electricity consumed at night or during other periods in which the home’s electricity use exceeds the solar panels’ output. For example, if a residential member has solar panels on the home’s rooftop, the system may generate more electricity than the home uses during daylight hours. Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. The policies differ, however, with respect to specific billing procedures, incentives, and requirements.Įach co-op supports DG via a net metering policy. Distributed GenerationĪll four of the surveyed co-ops have adopted DG policies and tariffs. A community solar facility can benefit from economies of scale compared to on-site, rooftop DG, and therefore deliver solar energy at a cost competitive with the latter. Such a program can be attractive to co-op members who, for various reasons, cannot or choose not to install solar panels on their property. “Community solar is a solar-electric system that, through a voluntary program, provides power and/or financial benefit to, or is owned by, multiple community members.” Although these terms have encountered problems in usage, we rely on the definition offered in the National Renewable Energy Laboratory’s Guide to Community Solar, adding a one-word clarification ourselves (in brackets): Our survey uncovered co-op adoption of another type of solar program gaining traction around the country-so-called community solar or shared renewables. These co-ops represent a cross-section of the state in terms of geography and membership size and exhibit a range of policies and approaches. The Texas Solar Energy Society recently surveyed four co-ops to learn more about their solar-related programs for both their residential and commercial members. Energy Information Agency, a majority of Texas’ co-ops have established DG programs in recent years. This phenomenon, a form of distributed generation or DG, represents a revolution in the relationship between utilities and the people they serve.Īccording to data gathered by the U.S. Like all utilities around the country, Texas co-ops are gradually adopting new business models in response to their members’ desire to generate their own electricity renewably while still being connected to the grid. There are 75 such Texas co-ops, ranging in size from the largest in the country, Pedernales, with more than 270,000 members, to much smaller organizations with less than 10,000 members. More than three million Texans, mostly in rural areas, receive their power from electric cooperatives. (in The Solar Reflector of January 1, 2016)
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