By: Powerstore

With the rising cost of power and the declining cost of solar energy systems, more and more people are turning to solar power as a way to provide energy to their homes. The promise of reliable, renewable energy and the possible elimination of electrical bills has made solar panels a common sight in suburban neighborhoods. However, this has put a dampener on utility companies’ profits, and city grids have become less inclined to reward solar users for their green living habits. But are these companies actually imposing punitive measures on those with solar power systems to discourage the installation of more solar panels? Read here to find out more.

Grid Access Fees

Most solar power systems are grid-tied or hybrid systems, which means they still remain connected to the city grid. This provides a safety net for solar users in case solar energy becomes unavailable for any reason. However, utility companies have now begun to impose grid access fees on solar users. This means that even if you’re producing enough power to be self-sufficient in your electricity consumption, you’re still going to get an electrical bill every month that charges you this access fee. 

The fee is supposedly meant to ensure utility companies can continue to cover the costs of maintaining their infrastructure, even as actual usage of that grid declines. Generally, companies justify this by stating that solar users still benefit from being tied to the grid, even if energy consumption from the grid is minimal.

Declining Paybacks for Excess Power

It used to be that, should your solar power system generate more power than you needed, you could feed that power back into the grid for a credit on your next utility bill. However, this payback benefit has become less and less common—or at the very least, the payback amount is declining significantly—as more people are tying solar power systems to their city grids; after all, utility companies can only afford to pay out to their own customers so much.

Sadly, this does impact some people’s decision to install solar, as it increases the amount of time that it takes to get a return on your solar investment. Other solar users are instead opting to add a battery bank to their system, figuring that storing the excess energy for later use is more beneficial than taking the minimal payback option offered by the grid.

Is Solar Still Worth It?

So, if you still have to pay grid access fees and your buyback rates for excess power are declining, is it still worth installing solar power? Generally speaking, yes. Grid-supplied power continues to increase in cost, so solar is still a great investment to make. And, if you opt for a battery bank with a Sol-Ark hybrid inverter, you’ll be able to store your excess power to use later, further reducing any reliance on utility companies.

Published By: Aize Perez