Utilities' view on solar power? Not as sunny as it could be

Utilities today are increasingly finding themselves in a chicken-and-egg situation. Which comes first: a smarter grid, or a greener grid?

While the two, in theory, go hand in hand — more intermittent renewables increase the need for smarter, automated management, while a smarter grid inherently means more green energy to reduce fossil fuel use and emissions — it appears the fast-growing base of grid-tied solar photovoltaics (PV) is starting to force the hands of many utilities.

That’s what Accenture’s found in a new study based on a survey by IDC Energy Insights, which questioned 50 executives at 31 North American utilities. Nearly four out of 10 of those polled (38 percent) say they expect PV penetration of less than 15 percent will force utilities to upgrade their systems or face challenging operational consequences. Another 34 percent say they foresee that “do-or-die” moment arriving when PV installations reach the 15- to 24-percent level.

While, on a nationwide basis, the US isn’t likely to hit either of those levels anytime soon (even solar powerhouse Germany generates only about 2 percent of its total electricity from the sun), some utilities could see that that point arrive earlier on a more localized basis… especially as the price of photovoltaics continues to plummet.

“Unless technology and operational interventions are introduced, utilities are likely to respond by imposing stringent connection requirements or restricting future solar PV installations,” the report stated.

And, voila, right on cue comes news that San Diego Gas & Electric (SDG&E)  is attempting to do just that, by proposing to charge customers with net-metered solar-energy systems a “network use charge” … ie, a fee designed specifically for those with PV installations. (While such a charge for only PV customers isn’t legal, SDG&E is seeking to apply it across the board. Of course, the customers who would be most affected would be those with solar panels on their roofs — the more energy they feed into the grid, the higher the fee would be. Strange times for solar indeed …)

That kind of move is exactly what Accenture doesn’t recommend in its study. Its advice:

• Utilities should make it easy to deploy PV systems and new ownership models by helping with infrastructure, systems and processes;
• Governments and regulatory agencies should “continue to make solar PV a viable renewable energy option”;
• Smart-grid initiatives should be fast-tracked so utilities can support more solar; and
• Utilities should consider adopting managed services to ease their transition to a new way of doing business.

“To realize the full potential of solar PV, utilities need to strengthen their systems and processes, and explore new operating models to meet the technological, operational and human resource challenges that stand in the way,” the report concludes.