Rooftop solar should pay for itself

UK Smart Export Guarantee enables households to sell surplus solar energy to suppliers, with dynamic export tariffs, grid payments, and battery-friendly incentives, boosting local renewable generation, microgeneration uptake, and decarbonisation across Britain.

Key Points

UK Smart Export Guarantee pays homes for exporting surplus solar power to the grid via supplier tariffs.

✅ Suppliers must pay households for exported kWh.

✅ Dynamic tariffs incentivize daytime solar generation.

✅ Batteries boost self-consumption and grid flexibility.

Britain’s biggest energy companies will have to buy renewable energy from their own customers through community-generated green electricity models under new laws to be introduced this week.

Homeowners who install new rooftop solar panels from 1 January 2020 will be able to lower their bills as many seek to cut soaring bills by selling the energy they do not need to their supplier.

A record was set at noon on a Friday in May 2017, when solar energy supplied around a quarter of the UK’s electricity, and a recent award that adds 10 GW of renewables indicates further growth.

However, solar panel owners are not always at home on sunny days to reap the benefit. The new rules will allow them to make money if they generate electricity for the grid.

Some 800,000 householders with solar panels already benefit from payments under a previous scheme. However, the subsidies were controversially scrapped by the government in April, with similar reduced credits for solar owners seen in other regions, causing the number of new installations to fall by 94% in May from the month before.

Labour accused the government last week of “actively dismantling” the solar industry. The sector will still struggle this summer as the change does not come in for another seven months, so homeowners have no incentive to buy panels this year.

Chris Skidmore, the minister for energy and clean growth, said the government wanted to increase the number of small-scale generators without adding the cost of subsidies to energy bills. “The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid,” he said. The government also hopes to encourage homes with solar panels to install batteries to help manage excess solar power on networks.

Greg Jackson, the founder of Octopus Energy, said: “These smart export tariffs are game-changing when it comes to harnessing the power of citizens to tackle climate change”.

A few suppliers, including Octopus, already offer to buy solar power from their customers, often setting terms for how solar owners are paid that reflect market conditions.

“They mean homes and businesses can be paid for producing clean electricity just like traditional generators, replacing old dirty power stations and pumping more renewable energy into the grid. This will help bring down prices for everyone as we use cheaper power generated locally by our neighbours,” Jackson said.

Léonie Greene, a director at the Solar Trade Association, said it was “vital” that even “very small players” were paid a fair price. “We will be watching the market like a hawk to see if competitive offers come forward that properly value the power that smart solar homes can contribute to the decarbonising electricity grid,” she said.

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Electric power market crisis highlights grid reliability risks as coal and nuclear retire amid subsidies, mandates, and cheap natural gas; intermittent wind and solar raise blackout concerns, resilience costs, and pricing distortions across regulated markets.

Key Points

Reliability and cost risks as coal and nuclear retire; subsidies distort prices; intermittent renewables strain grid.

✅ Coal and nuclear retirements reduce baseload capacity

✅ Subsidies and mandates distort market pricing signals

✅ Intermittent renewables increase blackout and grid risk

Is anyone paying any attention to the crisis that is going on in our electric power markets?

Over the past six months at least four major nuclear power plants have been slated for shutdown, including the last one in operation in California. Meanwhile, dozens of coal plants have been shuttered as well — despite low prices and cleaner coal. Some of our major coal companies may go into bankruptcy.

This is a dangerous game we are playing here with our most valuable resource — outside of clean air and water. Traditionally, we've received almost half our electric power nationwide from coal and nuclear power, and for good reason. They are cheap sources of power and they are highly resilient and reliable.

The disruption to coal and nuclear power wouldn't be disturbing if this were happening as a result of market forces. That's only partially the case.

#google#

The amazing shale oil and gas revolution is providing Americans with cheap gas for home heating and power generation. Hooray. The price of natural gas has fallen by nearly two-thirds over the last decade and this has put enormous price pressure on other forms of power generation.

But this is not a free-market story of Schumpeterian creative destruction. If it were, then wind and solar power would have been shutdown years ago. They can't possibly compete on a level playing field with $3 natural gas.

In most markets solar and wind power survive purely because the states mandate that as much as 30 percent of residential and commercial power come from these sources. The utilities have to buy it regardless of price, even as electricity demand is flat in many regions. What a sweet deal. The California state legislature just mandated that every new home spend $10,000 on solar panels on the roof.

Well over $100 billion of subsidies to big wind and big solar were doled out over the last decade, and even with the avalanche of taxpayer subsidies and bailout funds many of these companies like Solyndra (which received $500 million in handouts) failed, underscoring why a green revolution hasn't materialized as promised.

These industries are not anywhere close to self sufficiency. In 2017 amid utility trends to watch the wind industry admitted that without a continuation of a multi-billion tax credit, the wind turbines would stop turning.

This combines with the left's war on coal through regulations that have destroyed coal plants in many areas. (Thank goodness for the exports of coal or the industry would be in much bigger trouble.)

Bottom line: Our power market is a Soviet central planner's dream come true and it is extinguishing our coal and nuclear industries.

Why should anyone care?

First, because government subsidies, regulations and mandates make electric power more expensive. Natural gas prices have fallen by two-thirds, but electric power costs have still risen in most areas — thanks to the renewable mandates.

More importantly, the electric power market isn't accurately pricing in the value of resilience and reliability. What is the value of making sure the lights don't go off? What is the cost to the economy and human health if we have rolling brownouts and blackouts because the aging U.S. grid doesn't have enough juice during peak demand.

Politicians, utilities and federal regulators are shortsightedly killing our coal and nuclear capacities without considering the risk of future energy shortages and power disruptions. Once a nuclear plant is shutdown, you can't just fire it back up again when you need it.

Wind and solar are notoriously unreliable. Most places where wind power is used, coal plants are needed to back up the system during peak energy use and when the wind isn't blowing.

The first choice to fix energy markets is to finally end the tangled web of layers and layers of taxpayer subsidies and mandates and let the market choose. Alas, that's nearly impossible given the political clout of big wind and solar.

The second best solution is for the regulators and utilities to take into account the grid reliability and safety of our energy. Would people be willing to pay a little more for their power to ensure against brownouts? I sure would. The cost of having too little energy far exceeds the cost of having too much.

A glass of water costs pennies, but if you're in a desert dying of thirst, that water may be worth thousands of dollars.

I'll admit I'm not sure what the best solution is to the power plant closures. But if we have major towns and cities in the country without electric power for stretches of time because of green energy fixation, Americans are going to be mighty angry and our economy will take a major hit.

When our manufacturers, schools, hospitals, the internet and iPhones shut down, we're not going to think wind and solar power are so chic.

If the lights start to go out five or 10 years from now, we will look back at what is happening today and wonder how we could have been so darn stupid.

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COVID-19 Solar Job Losses are erasing five years of workforce growth, SEIA reports, with U.S. installations and capacity down, layoffs accelerating, 3 GW expected in Q2, and policy support key for economic recovery.

Key Points

COVID-19 Solar Job Losses describe the pandemic-driven decline in U.S. solar employment, installations, and capacity.

✅ SEIA reports a 38% national drop in solar jobs

✅ Q2 installs projected at 3 GW, below forecasts

✅ Layoffs outpace U.S. economy without swift policy aid

Job losses associated with the COVID-19 crisis have wiped out the past five years of workforce growth in the solar energy field, according to a new industry analysis.

The expected June 2020 solar workforce of 188,000 people across the United States is 114,000 below the pre-pandemic forecast of 302,000 workers, a shortfall tied to the solar construction slowdown according to the Solar Energy Industries Association, which said in a statement Monday that the solar industry is now losing jobs at a faster rate than the U.S. economy.

In Massachusetts, the loss of 4,284 solar jobs represents a 52 percent decline from previous projections, according to the association’s analysis.

The national 38 percent drop in solar jobs coincides with a 37 percent decrease in expected solar installations in the second quarter of 2020, and similar pressures have put wind investments at risk across the sector, the association stated. The U.S. is now on track to install 3 gigawatts of new capacity this quarter, though subsequent forecasts anticipated solar and storage growth as investments returned, and the association said the decrease from the expected capacity is equivalent to the electricity needed to power 288,000 homes.

“Thousands of solar workers are being laid off each week, but with swift action from Congress, we know that solar can be a crucial part of our economic recovery,” with proposals such as the Biden solar plan offering a potential policy path, SEIA President and CEO Abigail Ross Hopper said in a statement, as recent analyses point to US solar and wind growth under supportive policies.

Subsequent data showed record U.S. panel shipments as the market rebounded.

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Duration Portfolio Energy Storage aligns layered peak demand with right-sized batteries, enabling peak shaving, gas peaker replacement, and solar-plus-storage synergy while improving grid flexibility, reliability, and T&D deferral through two- to four-hour battery durations.

Key Points

An approach that layers battery durations to match peaks, cut costs, replace peakers, and boost grid reliability.

✅ Layers 2- to 4-hour batteries by peak duration

✅ Enables solar-plus-storage and peak shaving

✅ Cuts T&D upgrades, emissions, and fuel costs

The debate over energy storage replacing gas-fired peakers has raged for years, but a new approach that shifts the terms of the argument could lead to an acceleration of storage deployments.

Rather than looking at peak demand as a single mountainous peak, some analysts now advocate a layered approach that allows energy storage to better match peak needs and complement ongoing efforts to improve solar and wind power across the grid.

"You don’t have to have batteries that run to infinity."

Some developers of solar-plus-storage projects, bolstered by cheap batteries, say they can already compete head-to-head with gas-fired peakers. "I can beat a gas peaker anywhere in the country today with a solar-plus-storage power plant," Tom Buttgenbach, president and CEO of developer 8minutenergy Renewables, recently told S&P Global.

Customers are very busy these days and rebate programs need to fit the speed of their life. Participation should be quick, easy, and accessible anywhere.

Others disagree. Storage is not disruptive for generation, but will be disruptive for transmission and distribution, Kris Zadlo, executive vice president and chief development officer at Invenergy, told the audience at a Bloomberg New Energy Finance conference last spring. Invenergy, like many renewable power developers, develops generation, energy storage and transmission projects.

But there is another path that avoids the pitfalls of positions on either end of the all-or-none approach. "Do the analysis of the need itself," Ray Hohenstein, market applications director at Fluence, told Utility Dive. If the need is only two hours in duration, it may be best served by a two-hour battery. "You don’t have to have batteries that run to infinity."

Storage vs. fossil fuel peakers

Energy storage has several benefits over traditional fossil fuel peaking plants, Hohenstein said. It is instantaneous, it has no emissions and requires no fuel, and has limited infrastructure needs. It can also help the grid absorb higher levels of renewable generation by soaking up excess output, such as solar power at noon, and many planned storage additions will be paired with solar in the next few years. But the one thing energy storage cannot do, he said, is provide limitless energy.

So, instead of looking at replacing an individual peaker, Hohenstein advocated a "duration portfolio" approach that uses energy storage to shave peak load.

If the need is for 150 MW of resources that will never need to run for more than two hours at a time, then a battery is "quite cheap," significantly less than a four or eight-hour battery, said Hohenstein. "If you fill up your peak by duration layer, it could be more cost effective."

NREL research driver

Fluence’s approach is informed by research by Paul Denholm and Robert Margolis at the National Renewable Energy Laboratory (NREL), released last spring.

The NREL researchers looked at the California market where they said 11 GW of fossil fuel capacity is expected to be retired by 2029 because of new once-through-cooling requirements that are taking effect. A lot of that capacity is peaking capacity and, according to NREL’s analysis, a large fraction could be replaced with four-hour energy storage, assuming continued storage cost reductions and growth in solar installations.

The key in NREL’s research was the level of solar power penetration. There is a "synergistic" relationship between solar penetration and storage deployment, the researchers wrote, and other studies suggest wind and solar could meet 80% of U.S. demand as these trends continue.

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BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

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American Green Energy Independence accelerates electrification and renewable energy, leveraging solar, wind, and EVs to boost energy security, cut emissions, create jobs, and reduce reliance on volatile oil and natural gas markets influenced by geopolitics.

Key Points

American Green Energy Independence is a strategy to electrify, expand renewables, and enhance energy security.

✅ Electrifies vehicles, appliances, and infrastructure

✅ Expands solar, wind, and storage to stabilize grids

✅ Cuts oil dependence, strengthens energy security and jobs

As Putin's heavy hand uses Russia's power over oil and natural gas as a weapon against Europe, which is facing an energy nightmare across its markets, and the people of Ukraine, it's impossible not to wonder how we can mitigate the damages he's causing. Simultaneously, it's a devastating reminder of the freedom we so often take for granted and a warning to increase our energy independence as a nation. There are many ways we can, but one of the best is to follow the lead of the European Union and quicken our transition to green and renewable energies.

We've known it for a long time: our reliance on fossil fuels is a national security risk. Volatile prices coupled with our extreme demand mean that concerns over fossil fuel access have driven foreign policy decisions. We've seen it happen countless times — most notably during the wars in Iraq and Afghanistan — and it's played out again in Ukraine, which has leaned on imports to keep the lights on during the crisis. Concerned by Russia's power over the oil and natural gas market, the US and Europe were quite reluctant to impose the harshest, most recent sanctions because doing so will hurt their citizens' pocketbooks.

As homeowners, we know how much decisions like these can hurt, especially with gas prices being historically high even as an energy crisis isn't spurring a green shift for many consumers. However, the solution to this problem isn't to drill more, as some well-funded oil and gas interest groups have claimed. Doing so likely won't even provide a short-term solution to the problem as it takes six months to a year at minimum to build a new well with all its associated infrastructure.

The best long-term solution is to declare our independence from the global oil market amid a global energy war that is driving price hikes and invest in American-made clean energy. We need to electrify our vehicles, appliances, and infrastructure, and make America fully energy independent. This will save families thousands of dollars a year, make our country more self-sufficient, and provide hundreds of thousands of quality jobs here in the Midwest.

Already, over 600,000 Midwesterners are employed in clean-energy professions, and they make 25 percent more than the national median wage. Nationally, clean energy is the biggest job creator in our country's energy sector, employing almost three times as many workers as the fossil fuel industry.

As we employ our own citizens, we will defund Putin's Russia, which has long been funded by his powerful oil and gas industry. Instead of diversifying his economy during the oil boom of the 2010s, Putin doubled down on petroleum. We should exploit his weakness by leading a global movement to abandon the very resource that funds his warmongering. Doing so will further destabilize his economy and protect the citizens of Ukraine, especially as they prepare for winter amid energy challenges today.

We can start doing this as everyday consumers by seeking electric options like stoves, cars, or other appliances. Congress should help Americans afford these changes by providing tax credits for everyday Americans and innovators in electric vehicle and green energy industries. Doing so will spur innovation in the industry, further reducing the cost to consumers. We should also ensure that our semiconductors, solar panels, wind turbines, and other technology needed for a green future are manufactured and assembled in America. This will ensure that our energy industry is safe from price or supply shocks and reduce brownout risks linked to disruptions caused by an international crisis like the invasion of Ukraine.

In many ways, our next steps as a country can define world history for generations to come. Will we continue our reliance on oil and its tacit support of Putin's economy? Or will we intensify our shift to green energies and make our country more self-sufficient and secure? The global spotlight is on us once again to lead. We hope our country will honor the lives of its veterans and the soldiers fighting in Ukraine by strengthening energy security support and transitioning towards green energy.

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