Sustainable energy is currently the most rapidly expanding form of energy in the United States. The same is true here in Arkansas. Whereas we are not well set for wind as our neighbors are to the west, solar panels (PV) that generate electricity are effective, and getting cheaper by the day. Solar arrays now cost less than half of what they cost just 10 years ago.
The price is now so low as to be competitive with more conventional power sources such as coal and natural gas, and infinitely cleaner. Current solar capacity (as of 2015) is 20.1 megawatts (MW.) This is an unbelievable 640 % increase over all PV power installed up through 2014. The new power installed in 2015 is dominated by utility scale power, 15.4 MW. Commercial industries and businesses installed 0.24 MW and the residential sector 0.46 MW. This represents a 56 million dollar investment in clean energy and jobs.
Solar power has come of age, not just for people wanting a little power for an off-grid cabin in the woods, but residents tied to the grid, industries, and especially power companies. One real advantage of solar power is its scalability. If a power company needs to expand their energy supply a small amount, they can add a small solar field. If they need a lot of power, they install a bigger field. No alternative has this scalability. You just can’t build a (cost effective) small coal or nuclear plant. Not even natural gas fired turbines are as scalable.
The L’Oreal plant in North Little Rock will install several thousand PV panels, about 1 MW’s worth. In March 2016 a private-public consortium consisting of two Arkansas Electric Cooperative Corporations, and Aerojet Rocketdyne will install a 12 MW solar field near East Camden. The largest install this year will be an 81 MW solar farm to be installed by Entergy near Stuttgart.
Generally installs of home solar arrays are booming also. Most cost effective for the consumer is a grid-tied net metered array. This system allows the home owner to remain connected to the grid in addition to the solar panels. When the sun shines the panels provide energy to the house, but when the sun is not shining, the home can draw power from the grid just like any other home.
PV systems can be sized to provide all or any fraction of the power needed for the home. If a particular array actually produces more energy than can be consumed in a given month, the law allows the excess to be carried over to a month when energy is needed.
The consumers gain is however the power companies loss, and they don’t like it. They lose profits by not selling as much electricity and even worse net metering threatens the vertically integrated structure of the business. They are the power generators, the wholesalers, the distributors and the retailers, and they want to keep it that way. Other states, notably Arizona and Oklahoma, have instituted additional fees for home solar which will severely limit the development of truly distributed clean energy.
The Public Service Commission here in Arkansas is empowered by law to set rates and rate structures of electric utilities. Over the next year they will be conducting studies to determine if changes are needed (read additional costs to home solar users.) The utilities will be arguing that they have to claw back their profits to remain in business. Stay tuned.