Prices are going up. From the gas pump to the grocery store, it seems every product category is being impacted. GVEC is not exempt from these rising costs. In particular, GVEC and all suppliers in Texas are feeling the inflationary pressures on natural gas prices—a commodity integral to energy production in Texas. Since October 2021, natural gas prices have risen from around $3/mmbtu to over $8 today, leading to significant increases in the cost to produce electricity. GVEC has been absorbing these cost increases over the last several months, but it will not be able to do so for much longer. Pending board approval, it is likely that GVEC will be adjusting its G&T rate beginning with August billing. Please know that, as a not-for-profit cooperative, we don’t charge members more for electricity than we pay. Any decision to increase rates would be approved only to help ensure GVEC can continue providing reliable electricity to you, our members.
Inflationary Pressures and the Pivot to Home Solar
In recent years, the fluctuating nature of energy costs has been a primary driver behind the explosion in home solar adoption. Beyond the price of equipment and installation, solar electricity costs nothing to produce and use, making it an attractive long-term investment. In the long run, most homeowners can actually profit from solar adoption. GVEC’s Interconnection Agreement can play a critical role in making that happen.
Making Solar Safer, More Rewarding
Most home solar panels generate more electricity than owners use. This excess energy must be used immediately, stored for later or sold to the Cooperative. Adding battery storage to home solar allows owners to store excess energy and use it later, but even most battery owners generate more electricity than they use. This is where GVEC’s Interconnection Agreement comes into play.
What is GVEC’s Interconnection Agreement?
This document establishes a solar owner’s right to transfer electricity from their private home solar panels onto GVEC’s grid. GVEC in turn, purchases this solar electricity at the current renewable energy rate ($0.074kWh). GVEC requires these contracts for all solar owners on our grid as a matter of safety. During an outage, we must be able to ensure any electrical power fed onto the grid by solar panels is switched off. Otherwise, line crews working the outage could be subjected to “backfeeding,” a dangerous situation that not only jeopardizes linemen safety, but can also substantially damage property and GVEC equipment.
If you’re a GVEC member but purchased panels from another retailer, it’s still critical to establish an Interconnection Agreement. Without one, it means we don’t realize you have home solar installed.
The Economic Factor
GVEC’s Interconnection Agreement isn’t just about linemen safety. Through these contracts, every unused solar watt is purchased from the homeowner and fed onto GVEC’s grid, enhancing the financial return on a solar investment.
We’re Here to Help
Whether you have questions about our electric rates, home solar, or GVEC’s Interconnection Agreement, we’re always a phone call away. Call us Monday-Friday, 7:30 a.m. to 5:30 p.m., at 800.223.4832, and one of our customer service representatives will be happy to help you.
I am always interested in your comments and feedback. Contact me by phone at 830.857.1152, by email at dschauer@gvec.org or by mail at P.O. Box 118, Gonzales, Texas 78629.
