Conflict Around Renewable Energy

Over the past few years, many home and business owners have switched to renewable energy sources such as solar and wind power to save on energy costs. Not only are renewable energy costs lower, the use of green energy may decrease pollution. To promote the use of renewable energy, the US government has created renewable energy grants to help farmers, ranchers, and rural small-business owners pay for the cost of the transition. Unfortunately, the use of renewable energy isn't a win-win situation, and many utility companies have been fighting over the rates paid by consumers using green energy.

To keep renewable energy costs low and promote the use of green energy, utility companies in many states offer lower rates to consumers using solar or wind power. However, companies in the utilities industry feel that the rates are too low and are simply allowing consumers to avoid paying for the nation's power grid even though they are still using it.

The fact is, when a home or business uses solar or wind power, it also needs access to the electric grid during times when the sun or wind aren't producing enough energy. So to keep renewable energy costs lower, forty-three states offer power-swapping programs. These programs allow home and business owners to swap the excess energy their buildings generate on any given day for the energy they need during times when their solar or wind installations aren't producing enough energy. While this keeps renewable energy costs lower for the public, utility companies are taking a hit: not only are they losing customers because renewable energy costs are lower, they are also paying more to maintain the electric grid because there are fewer customers paying for it.

To regain control over the situation, utility companies in many states are requesting either rate increases or reduction in the benefits to consumers using power-swapping plans. Solar installation companies argue that raising renewable energy costs to consumers will decrease the number of customers likely to install solar panels.

In addition, increased power cycling will increase costs for utility companies. According to an article on the website The Huffington Post, the western power grid could accommodate 30 percent wind and 5 percent solar power by 2017. To keep the power on when the wind isn't blowing and the sun isn't shining, utility companies will have to cycle their coal- and gas-powered plants up and down more often, which could increase operating costs by between 2 and 5 percent.

The debate between utility companies and alternative energy-related companies isn't likely to end any time soon. But when renewable energy grants, tax deductions, and low renewable energy costs are all factored in, it's easy to see why so many people are choosing to use alternative energy sources. 

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