Baseload Production, Solar Panels, and Wholesale Electricity Prices
Baseload electricity production is the is the minimum amount of power that a utility or distribution company must make available to its customers, or the amount of power required to meet minimum demands based on reasonable expectations of customer requirements. Baseload values typically vary from hour to hour in most commercial and industrial areas. This measured and continual monitoring of the power grid requires utilities to speed up (to produce more), and slow down ( to decrease production), their generators accordingly.
Your home or office plays into this discussion as your use is both measured, and fairly consistent. When you add historical weather information, dates, and particular account information, a utility can build a good idea of what it's needs might be.
As a power producer, you too must now look at baseload power production. You have to push power into the grid when the power company says it is ok to do so, etc. You must only produce what you use, and therefore, you must go to a zero baseload. You are not welcome to contribute to the wholesale baseload via solar based on economics.
Residential Retail Power costs roughly 10-25 cents per kw
Commercial Retail Power costs roughly 15-45 cents per kw
Wholesale Power sold between utilities costs roughly 3-9 cents per kw
Your solar system will never pay for itself at wholesale rates. Therefore you only want to produce what you use. You want to eliminate a percentage of your baseload from the utility grid with your solar installation. You are not trying to become a utility company via solar panel installations on homes.
If you have batteries, you can produce power any time you like, and use it from the tank. If you don't have batteries, you have to use the power grid as the tank. When the power grid isn't there, you can't sell power, or buy any. Batteries provide the buffer for an independent power producer to forget about the normal utility grid inconsistencies. Click Here to understand how Batteries catch the power you Make.