CREDIT: ENERGY INFORMATION ADMINISTRATION
Net metering has been at the center of several recent battles between the solar industry, consumers and utilities across the U.S. As rooftop solar in particular booms, utility companies are growing increasingly concerned about the threat it poses to their bottom line. As more customers install solar panels, utilities will sell fewer units of energy and argue they’ll have to charge more in order to cover the cost of maintenance and labor. But distributed energy sources like rooftop solar also provide a benefit to utilities by generating during peak hours, when a utility has to provide electricity to more people than at other times during the day and energy costs are at their highest. Solar panels feed excess energy back to the grid, helping to alleviate the pressure during peak demand. In addition, because less electricity is being transmitted to customers through transmission lines, it saves utilities on the wear and tear to the lines and cost of replacing them with new ones.
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