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Rooftop Solar: Grievous Grid Economics

By Landon Stevens -- September 30, 2013

“It’s these subsidies and unfair billing credits–coupled with the intermittent nature of solar energy–that has utilities, utility customers, and taxpayers questioning the expansion of solar power. Until the solar industry can effectively operate in a free market and not burden consumers who cannot or choose not to install rooftop solar, this debate will continue.”

Solar power generation in the U.S. rose nearly 600% from 2000 to 2010 (NREL), and this trend is continuing. Fueled by an array of federal, state and local subsidies along with utility-bill credits, the economics of photovoltaic (PV) energy might seem too good to pass up. This is especially the case with residential or rooftop solar systems.

However, a closer look at industry subsidization, the unique properties of PV, and controversial billing practices for solar users, such as Net Metering, show that solar power is not as great a deal as its supporters would have you believe.