There are 2 ways in which the new smart gird technology can affect energy pricing. One is raising the rates when the demand for electricity is its peak and lowering the prices when the demand is not much during off peak periods. Hence the smart grid technology can benefit in more ways than one. People who are already tapping energy from the smart grid can sell the excess energy to the grid. The amount for the excess energy can then be credited to the customer’s account for the month.
As more and more people become aware of these renewable forms of energy and are willing to install the new systems in their house, the utility companies will have a lesser burden to create energy. There will be a smart system that will actually charge more during peak demand times and lower amount during off peak times. This way the utility companies will start making better profits and the consumers will know how to balance the consumption of energy.
As more and more people start consuming energy from the photovoltaic systems the cost of energy of the utility companies will come down significantly except for those people who are not using solar energy at all. These customers will then have to make viable decisions as to how they will be using energy in their homes or will they be paying higher bills. The photovoltaic energy user will experience lesser costs and even credits in his account at the end of the month. In fact, within a few years the new, renewable system can pay for itself but the exact time of paying itself depends on a number of factors.
The more the number of people selling the excess energy produced back to the grid the lesser is the energy that the utility companies will have to produce. In the future, if a significant number of people sell their excess energy back to the utility companies then they will be able to enjoy holding of more solar power. This will lead to prices of electricity dropping even further. Hence this will be beneficial for all parties. In fact, any amount charged by the utility companies will be profit if most of the energy that is provided is being made and returned to the grid by other consumers.
The Americans will always welcome any reduction in their electricity bills as they have struggled during the last few years because of high heating cists during the cold season.