Tag: dynamic pricing

Power Failures, Dynamic Pricing and The Future of Small Contracting

Article RoundupIndustry Issues

Opinion: More solar panels and battery storage at homes could prevent power failures

By Barry Cinnamon for The Mercury News

Cinnamon makes the link between power outage prevention and solar/battery backup clear. He states that while this tech provides electricity for households it also functions as a buffer for transformers by directing excess solar or battery power back to the local grids, rather than straight to nearby transformers (which can overload and fail). He points out that heavier demands for energy due to higher temperatures and more EVs are increasing power outages in CA and that modernizing local grids would address the problem.

Cinnamon states that encouraging homeowners and businesses to install BTM solar and storage systems would avoid the need for expensive grid upgrades that would otherwise fall on utility ratepayers. He highlights two important policies that would help lower the barrier to solar adoption: no limits on customer ability to install solar tech and the reduction of up-front costs of battery storage systems.

Key quote: “Power was out in my neighborhood for about 12 hours while PG&E deployed a crew to diagnose the problem and replace the transformer. But the blackout would not have happened if just one more home in the neighborhood had a solar or battery storage system.”

Beyond TOU: Is more dynamic pricing the future of rate design?

By Herman K. Trabish for Utility DIVE

In this article Trabish assesses the merits of dynamic pricing, often in comparison with time-of-use rates, by citing consulting groups and various consumer advocates. His research highlights the limitations of TOU rates with regards to reducing peak demands. He states that these rates offer too small a daily price differential.

Trabish points to the merits of dynamic pricing, “alerting customers to steeper increases in per-kWh rates in advance of specific peak demand events,” which results in increased reductions when highest demand days occur. This system guides customer usage more effectively because it closely aligns actual pricing and costs with price signals. Not only does this aid consumers, it also helps utilities more easily assimilate renewable energy and lower their generation and distribution costs.

Trabish’s research does demonstrate, however, that advocates are mixed on the suitability of dynamic pricing. He points out that while consumers show a willingness to adjust to different rate structures, issues like off-peak price to peak price ratio and rates set up to be revenue neutral present problems. He Keep reading

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