Comment: You are close, but not quite correct.

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In reply to comment: What this boils down to (see in situ)

You are close, but not quite correct.

The gen/ tx/ ex costs are not close to equal. Generation costs vary but coal or nuke is about 2-3 cents per kWh. Transmission losses are about 3-5 percent so about one tenth of a penny per kWh. Distribution costs are the lions share, and since they are actually subsidized by major power customers are actually 70-80 percent of the billed costs. When you over generate that power that is credited to you at face value is worth only the 2-3 cents per kWh that generation costs the utility. Even though you extra power is going to the neighbors house it is still using the distribution system that still incurs a basically fixed cost upon the utility to maintain. The point is the base meter fee you pay does not cover the cost of the distribution costs, and so your neighbors end up paying that cost. If you want the convenience of connecting to the grid you pay for that grid. If those costs aren't being carried by your power purchases they do need to come from somewhere, or your non-solar neighbor will end up paying for them, which of course means that your solar power abuses your neighbor through their power bill. Another issue is that you utility load dispatching has no idea what amount of peak power you are generating, and so cannot really consider that in their decisions about what generation to bring on line when. If you'd like to learn more feel free to contact me. I know the system is pretty Byzantine, but it is how Uncle Sam says it must be. Unless it can be brought back into a free market there is not much the utility can do. As it is, sadly enough, the utility actually gains nothing from your generation which sadly occurs basically when and where they need the power.

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois