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FERC Opens Wholesale Markets to Distributed Resources

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On second read perhaps solar owners without powerwall can even get in on the action. The list includes "intermittent generation". That's even bigger news for Tesla! I wonder how a model like this would fit in with net metering?
 
This seems like a double-edged sword. On the one hand, it does seem great to have a new option that recognizes the contribution of these distributed energy resources to the grid. It seems like it could be especially useful for people whose utility does not pay for excess energy, or whose utility pays poorly. And, it could potentially mean it makes mores sense to oversize a solar install where roof space is available.

The other hand, though, would be concern that because rates paid would almost certainly be lower than retail pricing, it could potentially lead to states/utilities abandoning NEM programs in favor of telling owners to sign up with a DER aggregator. So, it could potentially hurt some customers compared to current programs.

Like so many things, the devil will be in the details, including the kind of pricing a DER generator would get as well as what rules/restrictions the programs have. For example, there are utilities who have a "buy all/sell all" rule, where if you sell any energy, you have to sell everything you generate at the set, lower rate, and then buy it back at the higher, retail rate, even if you consume much of it locally. Also, those of us who claimed the ITC may find there would be tax implications to participating in this kind of program for the first 5 years of use.
 
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Reactions: SoCal Dave
I think about the 11 cents I pay Duke and they pay me. I think about consumers in my region who pay more, and having an aggregator sell my excess production where 20 cents is a bargain. I see this as an electric bill and an electric check, complete with a Form 1099 at the end of the year.