In Texas with deregulated power the grid operator pays solar the offset rate which is exactly the current average LCOE when the kwhr was banked. Meaning that the bank rate is offset cost of not generating that kwhr to include the fuel cost saved but also operating and maintenance and capital costs the Levelized Cost Of Electricity or LCOE is the all in cost. It’s the only fair way in a deregulated industry to account for incoming solar power. The power distribution network is owned by a licenced separate entity in Texas called oncor they only distribute power and charge a rate currently 3.4c per kwhr regardless of where it came from this charge is ALWAYS payed by the consumer of the power not the generator.
“It’s the only fair way in a deregulated industry to account for incoming solar power.
That part I don’t get - not disagreeing but it’s over my head. What’s the significance of the industry being deregulated?
But is the net result that users of the power company’s electricity subsidize the solar people?