There are versions of this story happening all over the country.
In the last decade, Utilities have on the whole, come around strongly in support of renewable energy, in particular the large wind and solar projects that they can roll into their rate base and profit from directly. Lately we’ve been seeing them push back on smaller systems, that home, business, or farm owners might put on their own roofs, or grounds.
There are usually formulas by which smaller solar generators get compensated for electricity they generate and put back on the grid. From the homeowner’s perspective, they want to get compensated at a rate near to the rate that they themselves would pay for the electricity they buy, the “retail rate”.
Utilities would rather compensate, if at all, with the “wholesale rate” which is quite a bit lower. In the case below, in Florida, if I understand correctly, there is currently a “credit” system that goes directly to the customer’s bill.
(Experts, I know you’re out there, so set me straight on the details here if necessary)
The basic argument utilities make is that, since they provide the grid that smaller users will need at night or on cloudy days, they should not have to pay small producers as generously. In some cases, they advocate for a regular additional charge for solar owners, which can sometimes be considerable.
It’s a big fight that goes right to the heart of what most people think of when they consider solar energy, and it can lead to a lot of anger against the utilities and what they are finally doing that’s right. The truth is, we need both big and small scale clean energy.
A broader solution might be a more fundamental change in the way that utilities are paid.
A lot of smart people believe that utilities should be less in the business of generating power, so much as maintaining the grid and distributing power from a large number of different generators, big and small.
They are after all, monopolies created by the state for our benefit. We made them. We ought to be able to think of a smart way to change them.
For right now, this conflict is being approached in different ways in several states.
WFLA:
In just days, a bill passed by the Florida Legislature will come before Governor Ron Desantis for signature. It will help shape the fate of rooftop solar in the Sunshine State.
The controversial bill lowers the credits power companies are required to provide to rooftop solar customers for the power they provide to the grid. Solar advocates say this will disincentive Florida residents from investing in solar panels, crippling the rooftop solar industry.
House Bill 741 will soon become law unless Gov. DeSantis vetoes it.
“A signature will mean the end to solar as we know it here in Florida,” says former Navy Seal Steve Rutherford, now the owner of Tampa Bay Solar, “Basically it is a gun to the solar rooftop industry’s head.”
So why is this bill so consequential? Because right now homeowners with rooftop solar are compensated by the power companies for the excess energy they produce on sunny days. This is called net metering.
The energy flows into the grid and supplements energy the power companies would otherwise have to provide, thus helping lower demand overall.
The compensation rooftop solar owners receive is a credit which they can then use at night when the sun does not shine. This keeps electricity bills down and in some cases near zero for energy charges. For many solar owners, it also allows them to pay off the large upfront investment required for solar panels.
“I haven’t had an electric bill all year,” says retired St Petersburg police officer Leonard Leedy – a customer of Rutherford. But he says he still pays the minimum payment to his utility of $30 dollars per month.
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