Byrne envisions electric companies installing solar cell panels on homes and commercial buildings primarily to help reduce consumer peak-load demand. The reduction could be large enough to actually offset the need to build new power plants, he says, if solar panels can produce enough energy to heat water, run air conditioners and power lights during these high demand periods. Peak-load demand comes when a utility must use all its power plants to supply customers with the electricity they need, usually in the summer during daylight hours. Some power companies have begun offering their customers incentives, such as rate discounts, to allow the company to turn off water heaters and air conditioners during peak-load periods, and rebates to purchase higher efficiency electrical appliances. But, Byrne says, solar cells can reduce peak-load demand more efficiently and with less discomfort and inconvenience to consumers.
Water heaters are a good example.
That saves anywhere from 300-700 watts per heater, thus lowering draw when demand is at its highest. Customers receive an incentive payment and the utility off-loads usage during peak demand, but, customers lose normal hot water service until it's time to turn on the heat. What the energy center study may show, Byrne says, is that solar cells can keep the water sufficiently warm to eliminate the need for the utility to serve the heater during peak-load periods. There would be no need for consumers to suffer hours of lost normal hot water service and no need for the utility to supply electricity to reheat their water. The grant became active on Oct. 15.