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Oklahoma has an opportunity to encourage more consumers to invest in renewable energy sources with a change in polices and price ratings. It would lead to more affordable and more efficient delivery of energy to our homes. To understand how this is done, consumers need a primer on net metering.
This allows residents with means to generate electricity through renewable energy systems, such as solar panels, to sell their surplus electricity to electrical providers. For consumers, this provides a reliable way to help offset the initial costly installation set-up. In July 2019, the Oklahoma Corporation Commission enacted new standards on consumer-generated electricity.
It raised the limit from 100 kilowatts to 300 kilowatts, with a limit of 125% of peak load of electricity to be purchased from consumers by their electrical provider through net metering. Considering this is an incentive to adopt new renewable energy sources, why limit how much consumer can provide? People are also reading..
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Surplus generations adds electricity to the grid, but does not directly pay for grid maintenance. This creates additional costs for service providers. Also, in the event of a power loss, certain systems are unable to distribute electricity, making these alternative sources unusable during outages.
However, during peak electrical consumption, defined by the Public Service of Oklahoma as 2 p.m. to 7 p.
m. from June to September, these systems can offset the fuel requirements from electrical providers. PSO currently compensates alternative sources at $.
03560 per kilowatt (or $.05099 for sources that meet and maintain minimum contributions), while charging residential users between $.075008 and $.
09646 per kilowatt, depending on how much electricity is used. For comparison, the rate per kilowatt during peak hours for electric vehicles can be as high as $.211175.
Additional consumer investment in solar-generated electricity during these peak times can help bolster the grid. PSO has proposed higher rates, an increase of 11% this year, to “recover increased business costs and electrical infrastructure investments.” And it has a company statement on its website committing to methods to achieve a low- to no-carbon future.
However, the only renewable option currently offered by PSO is wind power generated in western Oklahoma at an additional cost of $.0028 per kilowatt. According to the Environmental Impact Assessment, wind power accounted for 42% of Oklahoma’s electricity generation, while solar power accounted for less than .
3% of the state’s total electricity generation. Of this, 70% came from small facilities, which are mostly rooftop solar. For most of the Tulsa area, PSO controls electrical transmission and distribution, making it the only option to set-up residential inline electricity.
But, the Oklahoma Corporation Commission could increase competition and diversify electrical generation. The National Renewable Energy Laboratory estimates that rooftop solar has the potential to make up 35% to 45% of Oklahoma's total electricity needs. While this level of generation is unlikely and even unnecessary, removing regulatory restrictions and allowing consumers to voluntarily invest and purchase renewable energy will benefit Oklahomans.
Electrical providers could expand consumers’ electric options and simultaneously encourage investment in renewable energy through the sale of surplus solar from current customers. Renewable energy options should not be limited to sources owned by electrical providers. Renewable energy rates paid voluntarily by supportive customers could be used to reduce the cost of installation and ensure that necessary grid management and investments occur.
This could lead to other benefits, including grid stability, lower environmental impacts and potentially replace some backup power systems, if properly designed. Consumers should not be discouraged from investing in renewable sources. By updating net-metering policies to incentive adopting more/larger renewable energy systems, improving rate options for renewable energy and expanding consumer electrical rate choices, Oklahoma can increase investments through voluntary support from customers.
By expanding options fand adding competing energy sources, Oklahoma can further diversify its energy portfolio, increase competition between energy sources and empower electrical consumers..
