If energy companies are required to buy back excess electricity produced by alternative means at a reasonable price, residents will be more inclined to buy solar panels and other alternative energy producers for their homes as a personal investment. This will reduce our consumption of fossil fuels and lessen pollution levels. In transmission of electricity, an average of 7% is lost in transmission through power lines, so a full price buy back is unreasonable. Currently, the vast majority of states have no laws in place for protection or compensation to consumers who produce excess electricity back to the grid. By approaching the problem with the buyback price set by the company's own generation rate, the natural pricing balance can be achieved via the mechanism of the free market.
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