Santo Domingo.- Engineer Milton Morrison highlighted on Monday that the current electricity net metering tariff system, where solar panel-generated energy is compensated at the same rate as the energy withdrawn, is causing annual losses of US$ 10 million for the Southern Electricity Distribution Company (EDESUR).
As the general administrator of EDESUR, Morrison suggested shifting from the net metering tariff to a net billing scheme. He argued that the kilowatt-hour produced by a solar panel does not carry the same cost as the one injected by the distributor into the network.
Under this proposed scheme, Morrison believed that compensation for distributors could be achieved by factoring in the costs associated with generating and injecting energy into the network. He emphasized that the current losses must be covered with subsidies from the Dominican State. While acknowledging the benefits solar panels initially gained through Law 57-07 on Renewable Energy Incentives, he contended that these advantages are now outweighed by the service costs.
Morrison stressed the need for a serious and objective debate, highlighting that the existing operational scheme results in losses for electricity distribution companies. He assured that achieving a balance and recognizing costs would not deter the widespread adoption of solar panels, asserting the importance of continuing to promote and strengthen solar energy and renewables as a nation.
“I am a supporter of renewable energies, but objectivity is also essential, and my friends in the solar panel business are well aware of this,” Morrison stated in an interview with Francisco Tavárez on the El Democrat TV program, broadcast on Teleradio América channels 12 and 45.
Morrison pointed out an error in the net metering system for solar panels, explaining that the cost of a kilowatt-hour produced by a distributor, which involves purchasing from a generator and investing in networks and other expenses, differs from that of installing solar panels on a roof with an inverter and injecting into networks.
He clarified, “Distributors have to incur higher costs, in addition to having variable costs linked to generation that are unpredictable throughout an energy matrix.” Morrison insisted that the ongoing debate revolves around the costs associated with installing a solar panel and the expenses tied to electrical networks. He noted that under net metering, solar energy installers can inject their generated energy into networks, and distributors buy it from them at the same cost.