You might assume that the solar energy industry represents one united group, working together in harmony towards a renewable energy future. It’s a beautiful thought, but evidently this is not the case. Within the solar industry there is conflict arising between rooftop solar and large scale solar developers — namely First Solar — which sees rooftop as a threat to its future success.
James Hughes, the CEO of First Solar, a solar panel manufacturer and PV power plant developer based in Tempe Arizona, has come out publicly against net metering. Despite the fact that studies show distributed solar provides $34 million in annual benefits to all Arizona Public Service ratepayers, Hughes makes false claims that net metering is a subsidy “funded by all other utility customers who must pay proportionately more in rates.” He uses false information to make a direct attack on his own industry.
You might ask why First Solar has such strong opposition to the success of rooftop solar. The answer to that question can be found in the company’s 2012 Annual Report, in which it identifies rooftop solar as an obstacle that is likely to get in the way of the execution of its Long-Term Strategic Plan. The rooftop solar market is not part of First Solar’s business strategy, and the company admits that it will “have a material adverse effect on our business.”
You might assume that the solar energy industry represents one united group, working together in harmony towards a renewable energy future. It’s a beautiful thought, but evidently this is not the case. Within the solar industry there is conflict arising between rooftop solar and large scale solar developers — namely First Solar — which sees rooftop as a threat to its future success.
James Hughes, the CEO of First Solar, a solar panel manufacturer and PV power plant developer based in Tempe Arizona, has come out publicly against net metering. Despite the fact that studies show distributed solar provides $34 million in annual benefits to all Arizona Public Service ratepayers, Hughes makes false claims that net metering is a subsidy “funded by all other utility customers who must pay proportionately more in rates.” He uses false information to make a direct attack on his own industry.
You might ask why First Solar has such strong opposition to the success of rooftop solar. The answer to that question can be found in the company’s 2012 Annual Report, in which it identifies rooftop solar as an obstacle that is likely to get in the way of the execution of its Long-Term Strategic Plan. The rooftop solar market is not part of First Solar’s business strategy, and the company admits that it will “have a material adverse effect on our business.”
In order to protect itself from the perceived threat of rooftop solar, First Solar is filing comments against net metering in states like Arizona and Nevada where a significant portion of its large-scale project portfolio is located, and where the preservation of net metering policies is up for evaluation. Nevada is the site of two of the company’s large scale projects, which means the utility in that state is a major customer for First Solar. Comments filed in Nevada by First Solar advocate for thwarting the growth of their own industry by attacking residential solar. Similarly, First Solar filed comments with the Arizona Corporation Commission on September 18, 2013, in which it claims that the spike in rooftop PV growth has led to a financial burden on ratepayers and utilities. As I mentioned above, studies show this is not true at all.
Rooftop solar’s popularity among ratepayers and utilities does not come exclusively from the fact that it is a renewable source of energy. In addition to societal benefits, it is also a form of distributed generation – which means that it is energy produced close to where it is used. In areas where the grid is constrained and electricity demand is on the rise, utilities have the potential to save millions by avoiding the costs of paying for new power lines and purchasing more electricity. Utility scale solar just cannot compete with that.