SOLAR ELECTRICITY-POLICY INCENTIVES AND INEQUITIES!

Abundance of unlimited solar energy beckons this world to utilize the same in place of that generated by the unsustainable fossil fuel and undependable hydroelectric sources. If so why is that the growth of solar energy industry has not taken off in a big way? The answer is simple-the investment and per unit generation cost which appear to be unaffordable to most users as of now. However there are signs that this sector will garner explosive growth in the coming years if supportive policies by the governments in countries where solar energy is available plenty are tuned to attract more and more power users to go for solar system. Chinese solar energy industry is already supplying low cost solar power equipment world wide and new invest policies combined with fiscal incentives will further ensure a fast paced growth globally. But with such a positive outlook, there are also logistical problems arising out of unanticipated contingencies under different ground conditions which are highlighted in a report below emanating from California in the US.  

"When the sun is shining, the solar panels on his Fresno condominium produce more than enough power for his needs, and the local utility is required to buy the excess power from him at full retail prices. Those credits mostly offset his purchases from the electric company during cloudy days and at night. Mr. Burman says the credit system, known as net metering, is a "very nice benefit" for him. But it's not such a good deal for his utility, Pacific Gas and Electric. As he and tens of thousands of other residential and commercial customers switch to solar in California, the utilities not only lose valuable customers that help support the costs of the power grid but also have to pay them for the power they generate. Ultimately, the utilities say, the combination will lead to higher rate increases for everyone left on the traditional electric system. "Low-income customers can't put on solar panels — let's be blunt," said David K. Owens, executive vice president of the Edison Electric Institute, which represents utilities. "So why should a low-income customer have their rates go up for the benefit of someone who puts on a solar panel and wants to be credited the retail rate?"

The power utilities in the US run mostly by private companies cannot cope up with a system where their profitability is eroded and this is precisely what is happening there. The purchase clause under which they are forced to buy surplus power from home owners with installed solar power facilities at retail market rate, combined with a surplus power situation is making the situation some what dicey. While home owners are winners all the way, the conventional power generators are faced with the prospect of financial imbalance in their balance sheet compelling them to raise electricity tariff across the board, the impact of which those will be felt by those using conventional power from rid in the form of higher power bills. Probably the present policy incentives may need a revisit in the light of such contradictions.  


V.H.POTTY
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