Energy Deregulation Explained

If you live in one of the dozen or so states that has voted to deregulate the supply of electricity to its citizens, you probably pay more for your power than necessary. Energy deregulation means that you can choose who supplies electricity to you so power producers have to bid to earn your business. In states like mine (IL), the local utility was required by law to send out letters to all its customers informing them that they had the option to purchase power from alternate Retail Electric Suppliers (RES). What the utilities did not say in the letter was that choosing to select an alternate RES would probably save them 20-30% on their power bill.

Electricity generation is a huge and rather complicated business so you might not be aware that your local electric utility (who you pay each month) may not be the same company who actually generates the energy you are paying for. We don't have the choice in local utility companies but we do have the option to choose from different producers. In my case, ComEd is the local utility that delivers power but other companies supply electricity to me through ComEd. Opting for an alternate RES won't change anything about the quality of your electric power or the service receive--you just pay less for it.

States like TX, IL, OH, PA, NY, CT, MA, RI, NJ, DE, MD, and Washington D.C. are deregulated electricity markets 

I recently enrolled with an alternate RES through a local company. My wife and I live in a small condo so we use relatively little electricity (only 3,869 kWh last year). Most homes use significantly more energy than this, but I still save over $100 a year after signing up. Many businesses like restaurants or convenience stores use 250,000 kWh or more in a year so these companies see thousands of dollars in savings each year going with an alternate RES. I still receive a single bill from ComEd but the portion under Electricity Supply Services is now a single line item with my new kilowatt-hour (kWh) rate listed along with how much we used last month. I was told this is the same for corporate account holders too.

I encourage you to read up on energy deregulation and decide if choosing an alternate RES makes sense for you. Let me know if you have any questions about my experience.

Solar panels are more than energy generation

Solar electric vehicle charging station at the OMSI in Portland, OR--shelter & power!

Electricity and thermal storage from the sun is pretty awesome, but solar panels can really offer so much more.  In certain parts of the world, covered outside areas are the norm to shelter people, animals, cars, or other equipment from the sun or rain.  Why not incorporate solar panels into the design to replace other building materials?  The structure is already budgeted and the incremental cost adder for the solar panels over the dumb panels would easily pay for itself from the locally generated clean energy.  As the weather continues to warm across the country and here in the Midwest, shading structures will continue to grow as a building design concept.  What a great way to add solar too! 

Chicago Botanical Garden Rice Center green roof with PV panels

Another example of the energy from solar panels being only one facet of its benefit to a building owner is with LEED projects.  Solar panels on a roof reduce the amount of roof space the project manager would need to dedicate to a green roof in order to achieve green roof credits.  Green roofs reduce water runoff, filter this runoff water, reduce building energy consumption, and the local heat island effect which effects the entire community.  Solar panels mixed with greenery are a win-win on all these accounts plus you get local energy production (EA credit 2) to boot.

Reducing expensive roofing materials with solar panels can pay for itself even before any energy generation 

One more example of solar being more than the sum of its energy production value is with slate and cedar roofs or other expensive roofing materials.  With these roof types, the installed cost per area of a roof integrated solar water heating collector could actually be less than the cost of the roofing material that is displaced--even before any energy savings are accrued.  I know that this is true for skylights with the daylighting and natural ventilation benefit being only a fraction of the total energy savings a building project with higher end roofing can see.

The more you look at solar, the more benefits you see, and the harder it becomes to justify sticking with old, polluting technologies.