By Frank Andorka, Senior Correspondent
Solar observers in Kansas are watching closely as two demand-charge proposals wend their way through the Kansas Corporation Commission. A decision on whether the fees will go into effect is expected on September 27.
It’s always interesting to watch lesser solar states work out their solar policies, despite the fact they often fall into some of the same traps earlier states have. Kansas appears to be no exception.
The state’s two largest utilities – Westar Energy and Kansas City Power & Light – currently have proposals before commission, which solar advocates say could bring the industry to a screeching halt, according to Midwest Energy News.
One solar installer named Mark Horst is quoted in the article discussing one particular customer that he put together an estimate on how the demand charge would affect her bill. This is what he found:
The demand fee is high enough that it would actually offset all of the energy savings provided by smaller solar arrays, according to Horst. He analyzed the finances of one customer’s 2.32-kilowatt array, and determined that her average monthly savings of $35 would be more than negated by an average monthly demand charge of $45.
The upshot: “She would have to pay $10 a month for the luxury of having solar panels,” Horst said, adding that he would have to advise her for financial reasons to remove the panels.
As Midwest Energy News correctly points out, the demand charge is a longstanding method that utilities use to try to recover the revenues they lose when people discover what a good deal solar is for them and generate their own electricity.
What is heartening, at least for Kansas consumers, is that most utility regulators are loathe to allow demand charges because of their confusing nature. Most regulatory bodies aren’t willing to make it harder for customers to understand their bills.
That’s not to say Kansas won’t be the exception to the rule. But it should give solar installers like Hurst and solar consumers like the one he discussed some hope that the Kansas Corporation Commission won’t allow these usurious and confusing charges to make their way on to those bills. We’ll all find out together later this month.
More:
Kansas utilities’ proposed new fees could wipe out savings for some solar customers