Installation of solar panels on a home in Park Ridge, Illinois. Tim Boyle | Bloomberg | Getty Images

As solar power expands its reach into greater residential use, can solar companies and utilities find common ground? The flashpoint is over net-metering—a process where consumers use renewable energy to generate their own electricity, then cut their bills by sending excess power back to the grid at retail rates. Read MoreWhy US solar power may have lots of room to grow

The system, which saves consumers money on utility bills, is gaining popularity yet remains the subject of fierce debate. At least 43 states have laws making it easy for residents to save via the sun; still, utilities are pushing back against solar's rapid encroachment on the retail market. The U.S. is consuming more electricity than ever, costing consumers a pretty penny and encouraging them to turn to solar energy, which can save them money. The Energy Information Administration notes that retail electricity is up nearly 3 percent per kilowatt hour in 2014 versus a year ago, with costs rising for 20 consecutive months. This, despite the United States being in the midst of a massive domestic energy boom.

Power companies acknowledge that rooftop panels are forcing them to modernize the grid and rethink their business models. Additionally, residential units can help reduce strains on power systems during peak times and seasons. "The good news from the net metering perspective is it reduces net demand" on utility companies, said Dan Bedell, senior director of their Principal Solar Institute. "But the downside is that not only are you taking away their revenue, they also have to pay for the excess power at a retail rate." The rise of solar means utilities "have to price [their] products differently," said David Owens, executive vice president of business operations and regulatory policy at Edison Electric Institute, the association of publicly-traded electric companies. Read MoreStrange bedfellows: Solar power meets oil drlling "Rooftop solar panels are recognition that technology, public policy and customer preferences are requiring the utilities to look at this differently," Owens said in an interview. However, he argued that net-metering was creating a classic "free-rider" economic conundrum, where non-rooftop clients are ultimately paying more for electricity than net-metering clients. Certain costs, such as infrastructure and grid usage, are not being captured in what net-metering customers are charged, Owens said. For that reason, he thinks power companies—as well as other parties—are justified in challenging some of the presumptions behind solar panel use. Consumers "want choice, but we want to make sure customers at the upper-income bracket are not being subsidized by non-rooftop customers," Owens said. "Utilities are not afraid of competition, but if you're using the grid, you need to pay for it."