You might have heard that people in your neighborhood who've installed solar panels are the reason for your energy bills soaring. That's known as the solar cost shift, and this is what utility companies may want you to think.
But after speaking to experts for a YouTube video, EnergySage found that the idea of solar cost shift is inflated.
What is the solar cost shift?
Solar cost shift is the idea that homeowners using solar energy create more costs for non-solar customers. From an energy company's viewpoint, solar homes — which are usually still grid-connected — can take business away from traditional power sales. Most grid expenses, like power lines and poles, are fixed, so energy companies rely on energy charges to make money.
But solar-powered homes generate their own electricity, so those residents buy less energy from the grid. Utility companies claim that they need to recoup the shortfall by charging more on energy bills, leading to the solar cost shift.
Why is understanding the solar cost shift important?
In EnergySage's video, experts acknowledge that the solar cost shift exists to an extent. However, Brad Heavner, the executive director of the California Solar & Storage Association, states that utility companies sometimes have "faulty math to justify their attacks" on solar.
"Based on what we've heard from multiple experts and independent studies, it's pretty evident that [the cost shift is] not as high as utilities are making it out to be," the video's host explained.
The video also highlighted a quote from the Solar Rights Alliance: "Utilities are lying about rooftop solar." In fact, according to the SRA, 92% of rate hikes stem from power grid infrastructure spending rather than solar energy usage.
Heavner explained that the exaggerated solar cost shift theory is likely a result of utility companies trying to cover up their massive spending by using solar energy as a scapegoat.
How do solar panels benefit the grid?
Despite utility companies positing solar panels as detrimental to traditional power grids and consumer costs, evidence points to the opposite being true. Going solar is one of the best ways to save money on your energy bills, sometimes lowering your costs to $0. Solar also doesn't produce pollution that heats up the planet like traditional energy generation methods.
By using solar, your home demands less electricity from the grid. As more homes and businesses switch to solar, utilities shouldn't need to spend as much money expanding the grid. This should free up cash for utilities to update aging equipment and keep rates in check for everyone on the grid.
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Always 👍 While solar energy has numerous benefits, its upfront costs can be expensive. That's where leasing solar panels could come in handy. Palmetto offers solar panel leasing through its LightReach program with plans requiring no down payment. Leasing through Palmetto lets you reduce your energy bill without worrying about maintenance and upfront costs.
If you'd rather buy, use free tools from EnergySage to get estimates on purchasing and installing panels to compare quotes easily. Or, if you're not sure which option is right for you, explore some of the pros and cons of leasing or buying solar panels.
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