Solar Energy Rules Can Be Downright Confusing

Jul 11 - Record, The; Bergen County, N.J.

Lots of consumers would like to go solar, but the rules can be confusing, making it tough to decide if it's worth it.

"How do you sell your excess power to your utility when you have a small, 1.8 kilowatt system?" reader Frank Ficazzola asked in response to my recent column on my personal experiences with solar energy. "I assume you need more power than that to run your home?

"Second, you mention that 'the state says that when your system generates more electricity than you need -- and that happens frequently -- your local utility has to pay full retail rate, including the transportation and delivery costs that can be half of your electric bill.' I only receive a wholesale rate of .05/kWh [5 cents per kilowatt-hour] for any excess power I produce.

"Has there been a change in the law that I'm not aware of?"

Let me explain. My system produces almost half of my electric needs, but it is not consistent.

The best days are ones we had in late June, where the skies were sunny, with nary a cloud in sight, and temperatures in the mid-70s.

That meant my solar panels were generating at maximum capacity during the days of the year with the most hours of sunlight, but the mild temperatures meant I didn't need my air conditioner. As a result, I produced much more electricity than I needed.

But that is balanced by recent hot muggy days, with clouds reducing the amount of sunlight, or nights when there is no sun and the AC is running full blast. And don't forget winter months when the number of daylight hours is limited. My electric demands are low, but so is my solar output.

What it means is that at times I have excess production that I sell to PSE&G, but need to purchase power from them at other times. Remember: For the most part, electricity is not stored. It is consumed as it is generated.

Saying I "sell" it is slightly misleading because no one is actually paying consumers like me for excess generation. Instead, we have reversible meters that run forward when we are using PSE&G kilowatts and backward when we are providing power to the company's grid. Often it's a little of both -- we're producing some, but not all of our needs -- and the meter barely moves. It's called "net metering."

As far as rates go, state law calls for home owners to receive the full retail rate, but only for their own needs. Anything above that is sold at wholesale rates.

Whack-a-Rachel

The Federal Trade Commission goes after people who violate federal consumer laws, but enforcement can be frustrating because no sooner does the FTC shut down one illegal operation than another appears.

That's been the story of telemarketers who use the name "Rachel from cardholders services" to sell a phony service they say will lower credit card rates.

Here's how FTC Chairman Jon Leibowitz put it in our recent interview: "We have stopped many Rachels," he said.

"But it can be like the Whack-a-Mole. They keep popping up."

Pump prices head north

"It's tough predicting where prices are headed," I wrote about gasoline prices last week. The average price for regular in the Bergen-Passaic area, which hit $3.81 on April 17, was down to $3.29 on [July 3] "and does not appear to have bottomed out."

Wrong. Since then, the average has been edging higher, reaching almost $3.35 Tuesday, according to AAA. That's up 5.9 cents a gallon in a week.

Originally published by Email: demarrais@northjersey.com Blog: northjersey.com/moneyblog.