By Sean Gallagher, Solar Energy Industries Association (SEIA) Blog
When we do the math, the increase in electricity supply provided by distributed solar generation and its associated reduction in demand trickles down to all ratepayers, in at least two ways. First, grid operators buy less power, reducing their costs. Second, reduced net demand leads to a reduction in wholesale market prices, further reducing grid operators’ costs. Both streams of reduced costs are passed through to local utilities, which then result in reduced retail prices for ratepayers.
Remember this the next time your local utility tells you that your neighbor with solar is “shifting costs” onto the system. The fact is that the system is transforming, and that is good for us all.
Read the entire post here.