Favoring the Sun

Polling shows that a clear majority of Arkansans, 60 to 70 percent give or take, recognize that global warming is happening. Without any polling data, we can only guess the everybody given a choice would favor clean air over polluted air. One method to reduce the rate of global warming and clean the air is to generate electricity from solar panels. Keeping the lights on in a house at night or through a week or two of wintery overcast requires one of two options, a battery bank or buying power from a utility during those periods.

The latter is by far the most common as batteries, where utility power is available, are far more expensive. A common solution is a so-called grid-tied array. People with rooftop solar panels remain connected to the utility grid so that they can get power at night. During the day they can generate the power they need from the sun. To make solar power more attractive most states have some form of net metering.

Net metering is achieved via a bi-directional meter. At night when solar panels are inactive, the meter runs normally, but during sunny periods when the solar panels produce more power than is consumed in the home, the meter runs backward. The homeowner is at these times a net producer, essentially a little power company selling to the utility.

Act 464, 2019 addresses some issues with solar energy production. It allows for third-party leasing. Essentially this allows a homeowner to rent his roof space to another company for placement of solar panels. It also allows for larger net metered arrays so a business can take advantage of the sun to power their facility. A debate exists as to how the solar panel owner is rewarded for their excess production. The simplest and current method in Arkansas is that excess production is rewarded at the same rate as consumption. If in a given billing cycle there is an excess production, credit for that production is carried forward.

Utility executives say that this makes them buy power at a retail rate. Of course, they want to buy power at a wholesale rate, then sell at a retail rate to maintain profitability. But that is an oversimplification. Utilities pay different rates for power depending on demand, so there is no single wholesale rate. High demand times calls for the purchase of expensive “peaking” power. Conversely during low demand times equipment is idled which also has a cost.

Power demands vary by both season and time of day, but one thing is clear. Demand for electricity is always higher during the day than at night. Wouldn’t it be neat if there were a way of producing power during the day when it is needed but not at night so no utility equipment is idled? Solar generated electricity is nicely matched to demand which can serve to lower overall costs to the utility and at the same time clean the air and slow global warming.

The act has good and bad points, but overall it is supported by several environmental organizations.

Dr. Bob Allen, Ph.D., is Emeritus Professor of Chemistry, Arkansas Tech University.

2 thoughts on “Favoring the Sun

  1. Mary Ann King

    Good article. Now I understand the leasing concept a little better. Am I rightly assuming that the third party owns, installs and holds responsibility of panel condition if storm damage occurs?

    Reply

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