What happens when customers stop needing electricity?

[Joe Huber]

To entend what Michael said, I think that a lot of this complexity will sort itself out naturally as long as we can establish actual cost based pricing. Then consumers will be motivated to seek the lowest total cost solutions and utilities will get compensated at an appropriate level.

I see Demand or Capacity charges being an important rate element. So even in an annualized net-zero scenario, there will be monthly charges for the highest demand required from the utility.

I agree with Al that differential two tier pricing will help to generate utility revenue even on net-zero usage. But it certainly needs to take into account TOU pricing such that solar energy generated in the afternoon is more valuable than off peak energy. And the wholesale rate paid by the utility to buy back afternoon generation might be higher than the retail rate for off peak consumption. In that case the net-zero building owner might still earn a CREDIT for zero net energy consumption. As I say, the rates need to reflect the true costs basis and the rest will sort itself out naturally.

Regards,
Joe

[Gladwyn d'Souza]

Three necessities for net zero utility model
Gasoline: You can't design a 21st century grid with a nineteenth century model. Gas is not ten cents a gallon. Placing demand at the end of the rainbow does not get a pot of gold, it bankrupts everyone. The grid operator or utility will have to tier charge for transmission charged from the source to avoid unfunded distribution issues that are clearly visible in third world countries.

Net zero is not clean power: there will be variations on the grid as power sources are impacted by weather. These variations will need to be balanced with storage. Microgrids will continue to achieve efficiencies of scale over transmission for utilities.

Security: utilities will have to transition away from the disasters based impacts as peak resource play a larger role in the availability of water and destabilize settlement patterns. SCE's wind downed lines, Fukushima, etc highlight the need to redcuce conflict with resilient micro grids.