Renewable in kW/kWh

Renewable in kW/kWh

An isonomic and agnostic way of assigning costs to each energy source is through demand charging.

The kW-demand billing is universally used for “big” customers – those connected mainly in medium and high voltage. For the “small” ones, typically at low voltage (such as residential ones), the charge has been only for the consumption portion (kWh).

It happens that solar energy, for example, has become an important national source. Below I show what the impact would be if this suggestion were accepted.

[A] Demand rate USD 6/kW/month
[B] Solar energy production 110 kWh/kW installed/month
[A]/[B] Specific cost USD 5.5 cts/kWh

This is an important value when compared with the energy tariffs charged to consumers connected at low voltage. It would change the scenario of “exports” of solar energy that a system offers to the public grid when there is no consumption of all self-produced solar energy.

But, it would be a fair and equitable way of “each one pays his own” and not in the system that “everyone else subsidies it”.