As a sports fan, a question always pops to mind whenever I consider the story of David and Goliath: Who would take this match-up in a best-of-seven series? That’s because, in most sports, over time, the laws of averages come into play, the inherent advantages of one competitor win out over the disadvantages of the other, and a true champion is crowned.
So how do we explain the recent run of success that has the blossoming solar industry (i.e. David) routing monopoly utilities (Goliath) all across the country? Well, like they say in sports, they don’t play the games on paper. And the same would seem to apply in the world of competitive energy.
Since the beginning of summer, solar supporters have racked up a 3-0 record against big utilities…
Louisiana
In late June, the Louisiana Public Service Commission voted to maintain the policy that gives rooftop solar customers fair credit for the excess electricity they deliver back to the grid. This policy is known as net energy metering. It is a critical piece of revolutionizing our energy grid because it supports and encourages customer choice and private investment in rooftop solar.
As you might expect, the entrenched utility industry has been trying to kill net metering policies across the country since solar benefits like this put their profit margins at risk. But with net metering on the books in 43 states, the playing field may be too large for even big money special interests to execute a cohesive game plan. Which brings us to…
Idaho
Shortly after the landmark decision in Louisiana, Idaho Power tried to alter their net metering rules and lost huge when the Idaho Public Utilities Commission released its net metering decision, denying the utility most of its proposed changes. Among the highlights from that decision are that there will be no cap on net metering moving forward, no modification to the existing pricing structure, and no expiration of excess generation credits. All three points are huge victories for the solar industry.
California
But the big dog in any national policy debate will always be the Golden State. As the most populous state in the nation and the 8th largest economy in the world, decisions made on the left coast tend to wash over the rest of the country in time. So, it’s big news for solar energy that the California Legislature passed a bill (AB 327) in the final days of this year’s session that protects our state’s net metering policy. And in a coup for solar advocates, it had the support of the utility industry.
Originally seen as a solar killer, AB 327 received a makeover with amendments to: 1) lift a suspension order on net metering that would have gone into effect at end of next year; 2) provide certainty around how the current net metering cap is calculated, 3) provide a framework for removing the cap altogether and 4) remove the existing ceiling on California’s Renewable Portfolio Standard (RPS), which means the Public Utilities Commission can require utilities to get more than just 33% of their electricity from renewable energy sources.
By all accounts, this is a policy unique to California, and it encourages continued development of renewable resources on all fronts.
Kudos for this impressive run of victories is due to advocacy organizations like The Alliance for Solar Choice (TASC) and the nonprofit group The Vote Solar Initiative. For the sake of our environment and consumer choice, we should hope their successes continue.