Greg Dale/NG Image CollectionEnergy Solutions: Conservation and Efficiency 461EnviroDiscovery
Netting the Benefits of Home Energy Production
appliances use less energy, which more than offsets the
higher rates.
New technologies also allow electric utilities to moni-
tor when energy is used during the day, and even make
changes to customer energy use to reduce peak demand.
Peak demand is when customers use the greatest amounts
of energy, such as on very hot afternoons when every air
conditioner is running at maximum. Customers who are
charged higher rates at these times can shift some of their
activities to later at night or early mornings. Alternatively,
they can get lower rates by allowing the utility to remotely
shut off air conditioning for short periods of time. Ac-
cording to the American Council for an Energy- Efficient
Economy, U.S. electric power plants are themselves an
important target for improved energy efficiency. Much
heat is lost during the generation of electricity. If all that
wasted energy were harnessed—by cogeneration, for ex-
ample—it could be used productively, thereby conserv-
ing energy.
Another way to increase energy efficiency would be
to improve our electric grids because about 10 percent
of electricity is lost during transmission. To accomplishElectric Power Companies
and Energy Efficiency
Changes in the regulations that govern electric utilities
allow these companies to make more money by gener-
ating less electricity. Such programs provide incentives
for energy conservation and thereby reduce power plant
emissions that contribute to environmental problems.
Electric utilities can often avoid the massive expenses
of building new power plants or purchasing additional
power by helping electricity consumers save energy.
Some utilities support energy conservation and effi-
ciency by offering cash awards to consumers who install
energy-efficient technologies. Other utilities give cus-
tomers energy-efficient compact fluorescent light bulbs,
air conditioners, or other appliances. They then charge
slightly higher rates or a small leasing fee, but the greater
efficiency results in savings for both the utility company
and the consumer.
The utility company makes more money from sell-
ing less electricity because it does not have to invest in
additional power generation to meet increased demand.
The consumer saves because the efficient light bulbs or
Environmentally aware homeowners have often paid a large
economic price when installing renewable energy sources such
as solar panels or wind-driven generators. Such systems can be
expensive to purchase and install, and they provide electricity
only intermittently, when weather conditions permit. During
unfavorable conditions, residents must purchase electricity from
their local utility.
In a growing trend, utility companies are permitting
homeowners who produce their own energy to “net meter” their
electricity. Any excess energy homeowners generate is supplied
to the utility’s power grid, and the homeowners’ electric meters
run backward. Net metering offsets energy costs over a billing
period by essentially providing individuals the full retail price
for the electricity they generate. By itself, net metering doesn’t
turn residential energy generation into an inexpensive prospect,
but it certainly makes it more affordable, encouraging the
additional development of renewable energy for homes. Some
utilities and governments have made it easier for consumers to
finance installations, for example, by providing tax incentives or
promoting long-term loans.
Electric meters
can run backward
for homeowners
participating in net
metering.