Are Solar Panels A Challenge To Utility Copanies

This is one of the biggest challenges of harnessing and utilizing solar power.

Are solar panels a challenge to utility copanies.

The harsh reality today is that solar panels are essentially a commodity especially in the utility scale solar market where first solar operates. 872 which unlawfully discourages the development of qualifying facilities qf under the public utility regulatory policies act purpa. Yesterday the solar energy industries association filed a petition for review with the ninth circuit court of appeals of ferc order no. Even with record growth in the industry the large number of companies that jumped into the market created an oversupply of solar panels.

But the issue is not limited to giant utility companies earnings potential. As solar energy installations began to grow across the globe manufacturers rushed to produce the panels and materials needed to generate the renewable electricity. The order eliminates the right of qfs to enter long term fixed rate contracts and arbitrarily extends the one mile. Solar panels are a commodity.

Again demand charges can be combated with solar panels that face west or southwest because producing more energy during peak times means lowering your maximum usage. But there isn t much usable sun at 9 pm and some utility companies calculate the demand charge based on morning peak say 5 9 a m as well. These can be a significant outlay and many panels may be required to generate useful amounts of energy. Customers with rooftop solar panels buy less energy and pay less to utilities.