Do you like and believe in solar power? Solar is the superstar, right now, of renewables. We need to protect solar energy from the opposition from self-interested groups like fossil-fuel providers. Clean energy works on so many fronts--environmental, financial (with excellent ROI's to users and investors), job creation, technology changes, preservation of natural assets, etc. What unbiased entity would stall or stop solar's ascent? Who does not love to see locally produced energy powering business and homes without long transmission lines? We've waited too long to harness the sun's incredible power.
We hope you read Brian's piece and become an investor, user and supporter, within your community, of solar power:
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Brian F. Keane
Keane on Green
Franklin Roosevelt once said, “I ask you to judge me by the enemies I have made.” Well, today this adage can certainly apply to solar power! Once a power source as beloved as Mom and Apple Pie, solar is increasingly finding itself in the cross hairs of public policy, energy and politics.
When solar was a small niche product affordable only to wealthy homeowners with strong environmental leanings, no one was“against solar.” Sure it may have seemed a bit “out there” – but eventually, even President George W. Bush thought solar made sense and he put it on his ranch in Waco. Solar was going mainstream!
In 2010, we started to see a big surge in solar growth, some 200,000 homes installed solar that year. But by the end of this year that growth is expected to jump significantly, and 1.13 million American homes will add solar, according to the Solar Energy Industries Association (SEIA). In Connecticut, where SmartPower is operating a number of Solarize campaigns, our efforts have led to the installation of over 8 MW’s of solar on over 1,000 households within just 20 months! Solar has taken off!
This strong growth in solar power is driven by a number of factors - including a decline in the installed price of solar by 15%, a decline in the average price of the panels themselves by 60%, creative financing and leasing options, as well as federal and state policies that are supportive to solar. Indeed, along with rising costs of electricity, solar is now cost competitive with utility rates in many key solar states, including the two biggest solar states of California and New Jersey.
As a result, some 29% of all new electricity generation added in 2013 came from solar power, making it the second largest source of new electricity after natural gas.
It’s been an astounding growth period, and it’s been incredibly exciting.
And that’s when the battle lines start forming.
Now that solar is becoming a real force in powering America, it has attracted a growing list of organizations who are looking to blunt its growth. It’s a fascinating story of struggle, growth and the challenge to the status quo.
Because that growth has a lot of people very nervous.
Increasingly solar is being challenged by those most impacted by solar’s ability to power one’s home or business – the oil, coal and even utility industries.
When solar goes on a rooftop, it means a customer is now no longer buying electricity from their utility company and that means a loss in profits. This wasn’t an issue for utilities when it was just the odd guy down the street who added solar. But now with solar becoming mainstream, it’s increasingly becoming a major concern. In fact utilities in many states are required under local policies called “net metering” to purchase back excess power generated from these solar panels. Net metering is seen as a “pro solar” policy – since it results in the economics of solar being financially attractive for customers. Indeed, it’s helped a lot of people be able to afford solar, but is financially detrimental to utilities that are required to purchase that surplus electricity at high rates. And here in lies the reason that solar is now in the cross hairs of a coalition of oil and coal backers who want to change all that and stop solar growth.
So now that standoff is set – to net meter or not to net meter. On one side is the solar industry – which correctly sees that they have flourished under net metering policies. And on the other side are oil and gas investors and producers (lead by the increasingly infamous Koch brothers) and some large utilities that say, “eliminate it entirely.”
Common sense is required here. As we say at SmartPower, “clean energy is a consumer choice, not a political choice.” The issue of net metering should not be a red state/blue state partisan battle. It should be a business decision that fairly addresses concerns on both sides. Clearly even Coke and Pepsi have figured out that there is room in the marketplace for consumer options.
So let’s take a deep breath and take some time for a real cost/benefit analysis. As the economics of solar improve, should policies like net metering be adjusted to account for grid resources that solar customers use, while also acknowledging the value these customers and their financial investments provide to the grid and to their community?
Indeed, the Arizona Corporate Commission recently agreed to charge solar customers $5 a month for access to grid resources, rather than the $50-$100 monthly fee requested by the local utility, Arizona Public Service. But is $5 enough? Is it too much? On what basis was this decision made?
Decisions and discussions like this need to weigh all aspects of the cost-benefits. It’s not enough to just give an arbitrary dollar amount and say we have solved the problem.
As solar has grown and matured, it’s fair to reassess the cost-benefit and then adjust our policies if they need adjusting.
That’s just common sense, folks.
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