BELL COUNTY, TEXAS (KXXV) — Those who install home power sources like solar or battery backups aren't just saving money for themselves. Their home energy sources could reduce electricity costs for everyone in Texas if utility companies better embrace distributed energy resources, according to a new study.
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In Bell County, homeowner Kevin Martin said his rooftop solar system saves him hundreds of dollars every month from what had been huge bills for his all-electric home heating and air conditioning. The savings make the more than $60,000 installation cost worthwhile, he said.
"It doesn't take long for the math to make sense. Basically when the sun's out, energy's free," Martin said.
A recent study by the Texas Advanced Energy Business Alliance examined the 98 counties served by electric transmission provider Oncor. The research found that "distributed energy resources," or DERs, like home solar panels, battery storage systems, smart thermostats, and electric vehicles could become sources of electricity, or of electricity savings, during peak power demand periods.
"Battery storage, electric vehicles, and these are just batteries on wheels, smart thermostats. Oncor could treat those resources as if they were power plants," said Matthew Boms, executive director of the Texas Advanced Energy Business Alliance.
Beyond saving himself money, Martin said he could see the broader benefit.
"I'm producing more than I'm using. So hopefully that will lessen the strain on the grid," Martin said.
The issue becomes crucial as Oncor and the state Public Utility Commission are currently negotiating over Oncor's request for significant electric rate increases, partly based on the need to add expensive new capacity.
Oncor formally applied to raise its rates early last summer and the question is currently being aired out before an administrative law judge.
If Oncor planned for DERs that customers already have, the utility could defer some infrastructure costs for poles, wires and substations, according to Boms.
"The savings is huge 8.5 billion dollars. That averages out to $279 per customer, per year," Boms said.
Oncor said in a statement that the company "works cooperatively with customers across our system who are interested in leveraging distributed energy resources." The utility said it's working with ERCOT and groups like the Texas Advanced Energy Business Alliance to establish DER standards and rules.
The end of major federal subsidies has impacted the solar business, but providers say it still makes sense for utilities to consider who has solar installations.
Bret Biggart, CEO of Freedom Power, noted the timing alignment between peak demand and solar production.
"The times when, on the grid, you have the most demand, which is sort of at 3:00 on a summer afternoon, happens to also be the time when solar is producing the most power," Biggart said.
For his part, Martin declared he's a fan of all forms of electricity generation, including nuclear power, but when it comes to solar, he said it's wonderful in the heat of summer to look at a power bill that's a fraction of what it used to be.
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