Utility Solar Business Model Flaws: CPS Energy's "SunCredit" Isn't the Answer

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body-utility-solar-business-model-flaws-cps-energys-suncredit-isnt-the-answer.jpg As an owner of a small (16 kWp) PV plant, the local utility recently informed me that they would soon be discontinuing net metering in favor of a fixed payment per renewably produced kWh (cheerily termed a SunCredit), which is to be determined annually. Specifically, the retail value of a grid-delivered kWh is 9.9 cents while the value of a PV produced kWh is only 57% of that (5.6 cents). The remaining 4.3 cents per kWh is absorbed in the costs of transmission lines, transformers, administration, maintenance and the like.

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