In a column posted earlier this week on San José Inside, I looked back on the energy battles of 2013, as big utilities launched attacks on policies like net metering to stifle innovation and maintain their profit margins, only to be turned back at every turn by an organized coalition of solar companies.

Led by The Alliance for Solar Choice (TASC), the top rooftop solar companies successfully preserved net metering in Idaho, Louisiana, Arizona, and California. And following TASC’s lead, the 40-year-old Solar Energy Industries Association (or SEIA) took on a stronger tone in its advocacy. The shift at SEIA coincided with the naming of Nat Kreamer, CEO of Clean Power Finance (CPF), as Vice Chairman of SEIA’s Board of Directors.

Kreamer’s typically aggressive tone toward big utilities behind the scenes contrasts with a relatively amicable public front. As reported in my earlier article, according to a CPF spokesperson, CPF works with TASC while not identifying as an official public member.  Publicly they have taken “a more measured approach with utilities” because of their unique business model as the confluence between supply and demand.

In my column, I referenced Kreamer’s military background and suggested that he may see himself and CPF as a “double agent” in the struggle for our energy future. CPF seemed to embrace this image by re-posting the column on their website.

As if to drive the point home, this week CPF announced a new partnership with midwest utility investor Integrys that creates “a residential solar finance fund through the CPF Market, an online platform that empowers electric power companies to invest in residential solar.” You can read more in this CPF press release.

Typically, CPF will allow their partners on the solar installation side to promote their own brand through the CPF Market. Indeed, in a note sent to those partners, CPF talks about how other vendors “put their brand first,” and goes on to say, “We support your brand by being ‘white-label’ to your customers.” Conversely, the deal with Integrys puts the utility company front and center, which Kreamer makes clear in the press release:

“CPF is currently the only residential solar finance company that allows a retail energy company such as Integrys Energy Services to set the parameters of its fund, promote its brand to consumers and own 100 percent of the asset.”

Perhaps influenced by Kreamer’s leadership, the SEIA called the development “very good news,” citing the boost that big utility investment can deliver to the residential distributed generation (DG) solar sector. Because recent energy battles are happening mostly in the public eye thanks to expanded press coverage, it’s hard to think of CPF as a double agent in the traditional, covert sense. Instead, it may be more accurate to label their tactics as a “carrot and stick” approach.

Regardless of what you call it, time will tell if the approach bears fruit in the long term. At the very least, it will be an interesting story to watch in the year ahead.

In the latest chapter of the “Rentseekers” of Big Energy stifling growth in the disruptive rooftop solar industry, consider for a moment the Los Angeles Department of Water and Power (LADWP), which is trying to change the rules on rooftop solar customers in the middle of the game.

Since 2009, thousands of LADWP’s customers have signed lease agreements with third-party providers and had systems installed. These contracts were approved by DWP. Now, LADWP is trying to force hundreds of the city’s most recent solar customers to re-sign their contracts, attempting to force solar companies to insert amended language even though the utility acknowledges they had approved the contracts on no less than three separate occasions.

On precisely none of those occasions did their reviewers catch what they suddenly perceive to be language that may in fact violate their own standards for contract language.

By slowing the progress of solar energy and creating such a difficult consumer and business experience, LADWP is acting in direct contrast to the city’s goals for solar growth. Regardless, without re-signed contracts, LADWP says it will not allow these customers to interconnect their solar systems to the grid. This prevents them from accessing the benefits of local, clean power, and from lowering their electricity bills.  

The re-signing process has been extremely confusing and off-putting, especially for those who already have systems built on their rooftops. It, once again, puts the rooftop solar industry – a major source of job growth – at odds with the municipal utility. (See previous criticisms of LADWP, their delays, and inefficiencies here.)

Solar companies and constituents are in the process of contacting L.A. council offices, so there is hope that a policy fix is be on the way. Moreover, Mayor Garcetti has made his plans for increased distributed generation in L.A. clear. After all, the City did approve the original contracts that solar companies have used.

Meanwhile, interconnection is on hold for hundreds of families. Consumers are trying to do the right thing, and solar companies and customers have complied throughout the process, yet the utility is forcing everyone to jump through hoops despite approving the original course.

Let’s hope L.A. moves forward and changes the course.  

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.

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.

What do potatoes, surfing, and Mardi Gras have in common?  They represent states where leadership has made decisions demonstrating a strong commitment to rooftop solar.  Over the past several months, the states of Idaho, California, and Louisiana have served as battlegrounds where the rooftop solar industry and its advocates have successfully defeated monopoly utility attempts to limit or eliminate net metering. In all three states where the battles have been waged, utility regulators and legislators’ decisions have led to the preservation of net metering. Net metering is the cornerstone solar policy that gives rooftop solar customers full retail credit for the excess energy they put back on the grid.  So far the score stands at 3-0, with solar in the lead.

What do potatoes, surfing, and Mardi Gras have in common?  They represent states where leadership has made decisions demonstrating a strong commitment to rooftop solar.  Over the past several months, the states of Idaho, California, and Louisiana have served as battlegrounds where the rooftop solar industry and its advocates have successfully defeated monopoly utility attempts to limit or eliminate net metering. In all three states where the battles have been waged, utility regulators and legislators’ decisions have led to the preservation of net metering. Net metering is the cornerstone solar policy that gives rooftop solar customers full retail credit for the excess energy they put back on the grid.  So far the score stands at 3-0, with solar in the lead.

Policies like net metering, along with innovative financing options and the fact that the cost of solar energy has dropped dramatically, has led to tremendous growth in rooftop solar installations over the past decade.  This growth has come unwelcomed by utilities that see the trend as a threat to their revenue and growth.

Utilities are attempting to hinder the progress of rooftop solar by pushing legislation that limits or eliminates existing net metering policies.  Utilities want to do away with net metering because they are dependent on a centralized, monopoly model that is being threatened by the emergence of rooftop solar and other forms of distributed generation.

While the rooftop solar industry has three victories under its belt, the war is not yet over.  Net metering battles continue to crop up across the US, but the solar industry has history and public opinion on its side. It’s been said that utilities are like the typewriter lobby resisting modern computers.  Plus, consumers want the freedom, predictability, and cost savings of rooftop solar.  In a recent poll from Arizona, about 67 percent of respondents said solar is the energy source they want to encourage most.

About AB 327

As explained in a Vote Solar press release: AB 327 is “a net metering and rate reform bill that contains a number of strong provisions for distributed solar. AB 327 ensures that one of California’s most important solar consumer rights, net metering, will stay in place until at least 2016 instead of being suspended as soon as next year. It also gives the California Public Utilities Commission authority to remove caps on participation in the program altogether for the first time in California history. These changes chart the way forward toward long-term solar industry sustainability, and will help hundreds of thousands of homes, schools and businesses go solar and lower their electricity bills.”

The future of solar energy in the state of California just got a little brighter.  Thanks to the recent passage of Assembly Bill 327 — a piece of legislation supported by solar advocacy groups and big investor owned utilities alike — rooftop solar will be accessible to more California residents.

The future of solar energy in the state of California just got a little brighter.  Thanks to the recent passage of Assembly Bill 327 — a piece of legislation supported by solar advocacy groups and big investor owned utilities alike — rooftop solar will be accessible to more California residents.

When it comes to energy legislation, investor owned utilities (IOUs) such as PG&E and Southern California Edison are not very often on the same side of the fence as solar advocacy groups like The Alliance for Solar Choice (TASC) and the Vote Solar Initiative (VSI).  However, thanks to the leadership and successful collaborative efforts of California Gov. Jerry Brown, AB 327 has brought the IOUs and solar advocates together.

Since AB 327 lifts the ceiling on percentage of California’s energy generation that must come from renewable sources and brings stability and certainty to state’s solar net metering program, it supports the objectives of solar advocacy groups.  Net metering gives solar customers full retail credit for the excess energy they put back on the grid.  AB 327 removes the suspension on net metering that would have gone into effect at the end of this year and paves the way for completely uncapped net metering.  

The fact that the bill also includes provisions that give the California Public Utilities Commission new considerations for rate reform makes it attractive to IOUs.

Before the passage of AB 327, the future of net metering was uncertain.   This uncertainty threatened continued growth, especially the notable growth that the industry has seen in lower and middle income communities in recent years.  According to John Stanton, co-Chair of TASC and VP of Policy and Electricity Markets for Solar City, “Passage of this legislation means more Californians will now have access to cleaner, cheaper and better energy.”  Greater stability that the continuation of the program provides in the solar market also equates to more jobs in the state.

Next stop for AB 327: the Governor’s desk.

Nothing makes me appreciate electricity more than conferences and airports. I walk around the perimeters, eyes fixed to the ground (and my dwindling phone screen), looking for that unoccupied little power outlet of opportunity that will allow me to stay connected all day (maybe? We can only hope).

Listening to naysayers talk about trumped-up “problems” with solar energy, one would think that we’re going to be stuck with the same antiquated, centralized electricity system for ages. But that’s just not the case, particularly because of solar. In fact, we all have the opportunity to procure our own solar power strips, so to speak. Distributed rooftop solar can now be accessed by Californians of all walks of life through programs that take care of the initial installation costs, leaving users to enjoy the long term advantages. In fact, according to a July 2012 California Solar Initiative report, two-thirds of home solar installations now occur in low and median income neighborhoods.

Unfortunately for us, monopoly utilities have gotten themselves a sweet deal that guarantees healthy profits at the expense of ratepayer’s wallets and health, so you can imagine they’re not about to give it up without a fight. And fight they have, doing their best to hinder and obstruct a new energy source because it cuts into the profits they make out of building, maintaining (well, how much of this goes on is clearly debatable) and running their large-scale infrastructure. Their latest efforts are focused on eliminating net energy metering, a successful policy in 43 states that gives solar customers fair credit for the energy they put back on the grid.  

I asked Refugio Mata – a long time community organizer in East Los Angeles and the spokesperson for My Generation (Sierra Club’s clean energy campaign in California) www.sierraclub.org/mygeneration about this:  “Instead of trying to inhibit or kill the growth of rooftop solar in California, utilities should be doing everything they can to enable Californians from all walks of life to be part of the clean energy solution. When we install solar panels on our roofs, we are creating good, local jobs. Solar panels help make the transition from dirty to clean energy possible. By replacing fossil fuel energy with rooftop solar panels we also help to clean up the air we breathe and protect the health of California’s most vulnerable communities”

Speaking of protecting the health of Californians, that’s exactly what a new organization called Californians Against Utilities Stopping Solar Energy (CAUSE) has set out to do.  CAUSE is co-chaired by California physicians like Dr. Luis Pacheco, Medical Director of the Transitional Care Unit at California Hospital Medical Center and Dr. Deonza Thymes, board certified Emergency Medicine physician and CEO and founder of Healthfly Inc. The group believes rooftop solar should remain a core part of California communities and our economy, and that it should not be stifled to protect utility profits.  

We need to consider and evaluate the full value of all energy sources available and encourage consumers to make their own choices without any high-handed, political, backroom deals tilting the balance against a choice that is clearly rising in popularity. For example, a recent study by Crossborder Energy on the value of net energy metering shows that it will deliver more than $92 million per year to all California ratepayers and the grid.  It’s good for our health, and a financial benefit.  Condescending attitudes from utilities, masked as concern, will do nothing to help the communities that fossil fuel providers claim to worry about. Clean air, well-paid local jobs and cost-efficient rooftop solar energy can go much further in this regard.  

With his State of the Union address, President Obama delivered an important message that Congress and the American people need to hear: our nation’s leaders must pass legislation that creates American jobs now.

America, our shining city on a hill, has been blessed with great fortune in our proud past, but as the President noted, every generation faces new challenges and new opportunities. We must be bold and forward looking, never forgetting that America’s prosperity has always relied on hard work, solid education, and well-maintained infrastructure. We’re a nation that has always thrived when we’ve built things – the light bulb, the automobile, the Internet, and the GPS. We need to build things again. We need to Make It In America

During the Great Recession, America stared into the abyss, but with the leadership of President Obama and Democrats in Congress, we steered our economy toward a better path. We invested in infrastructure, education, manufacturing, and smart tax incentives, putting millions of Americans to work. With the Recovery Act and other pro-growth, pro-jobs laws, we did a lot, but we need to do more. President Obama is right to call on this Congress to pass legislation that creates jobs now.

America – the idea and the nation – is at a crossroads. For decades we have stood by watching our manufacturing sector atrophy. We’ve seen hardworking breadwinners thrown to the curb, because big corporations can make more profits offshoring jobs to countries with atrocious labor and environmental standards. We’ve seen middle class families kicked out of their homes, because wages have not kept up with costs. We’ve seen too many great people on the sidelines of our economy, their talents wasted and dream deferred, because there simply are not enough jobs. We must do better. We must Make It In America again or else we’re not going to make it in America.

An American child born today will grow up in a world where her nation’s long held claim to economic supremacy will be challenged by peers in China, India, and elsewhere. She will live in a world where computer literacy and access to high speed Internet largely predict achievement. She will live in a world of infinite potential for people and nations committed to a better future. She will live in a world where mass transit and clean energy are everyday necessities of life, creating good jobs for someone somewhere. Let’s make sure we Make It In America and create American jobs now, so that she will live in a world where America is still the leader of the free world.

American manufacturing, which produced the largest middle class in history, is crucial to building sustained prosperity for the years to come. Across this country, we see evidence of a new fledgling Clean Energy Industrial Revolution. Detroit is producing hybrid cars, Pittsburgh is constructing robotic instruments, Schenectady, New York is developing advanced batteries, and Livermore, California is building solar panels. Across this country, clean energy is creating jobs.

In his State of the Union address, the President called for one million electric cars and a stronger clean energy standard. By setting this goal, the President was challenging Americans to dream big.

The President is right. This is our Sputnik moment. Imagine if we had responded to the challenge of Sputnik by soaring to the moon in a space shuttle that was Made in the Soviet Union. We could have gone that route – admitted failure and surrendered our economic and security assets to another country. Instead, we focused on inventing and constructing crucial technology, which sparked a wave of new businesses and jobs. Similarly, to address our twin 21st century challenges of energy security and advanced infrastructure, we cannot depend on the kindness of other countries. To enhance our geopolitical security and to create the jobs of the future, we have to strengthen these key manufacturing sectors.

As we see when basic scientific research spurs the flourishing of new industries and generates millions of new jobs, public policy has a valuable role to play in setting the stage for a return of America’s manufacturing prowess. A good first step would be to ensure that taxpayer dollars are spent on American-made transportation and renewable energy projects. I am introducing legislation to this effect. Strengthening domestic content requirements for high-speed rail, solar panels, biofuels, and other growth industries will create jobs, right here in America, right now. It just makes sense.

America has energetic entrepreneurs, a skilled workforce, and visionary inventors. Let’s give them the opportunity to do what they do best- to work. The building blocks of a prosperous future are available today. Let’s start building.

Congressman John Garamendi (D-Walnut Creek, CA) represents California’s 10th Congressional District, which includes parts of Contra Costa, Solano, Alameda, and Sacramento counties. As California’s Lieutenant Governor from 2006-2009, he chaired the California Commission for Economic Development.

NOTE: These are my prepared remarks for today’s keynote address as the Scripps Seaside Forum, sponsored by the Sustainability Alliance of Southern California, Heartland Foundation-United Green and Scripps Institution of Oceanography.

It’s great to be at the Scripps Institute of Oceanography, one of our country’s most important research facilities. The work of this institute has led the way in understanding climate change, the effect of the warming oceans and how we can adapt to the inevitable changes in our environment.  

I’m here today to talk to you about the next industrial revolution. The world’s economies are fueled by carbon based fuels that have polluted our atmosphere and set up a warming climate. Now when I talk about the next revolution, I don’t mean the coal-and-oil fueled economy of yesteryear. The irrefutable science of climate change requires that we take a different path, and with sound investments in renewable energy, green technology, and education, we can create a new green industrial revolution that will put countless thousands of our residents back to work.  

President Obama understands what’s at stake. Under his stimulus package, California is expected to receive more than $1.5 billion for job-creating alternative energy, energy efficiency, energy conservation, and other energy and climate related efforts. Included in this estimate, the U.S. Treasury and Energy Departments announced that at least $3 billion in competitive grants will be distributed nationwide to support an estimated 5,000 biomass, solar, wind, and other renewable energy projects. Note to Secretary Chu: consider using some of the $3 billion as a loan guarantee, thereby expanding the use of the funds.

Incentives for renewable energy generation and installation are also fueling the growth in green jobs. In just the first four months of 2009, solar installations nearly tripled compared to the year prior. Homeowners, businesses, and government all benefit from the California Solar Initiative (CSI), which provides incentives that reduce the total cost of installed systems by an average of 20 percent. Signed into law in 2006, the CSI aims to install 3,000 MW of new solar power by offering $3 billion in solar rebates over 10 years. Additionally, businesses and homeowners qualify for a federal investment tax credit of 30 percent on renewable energy systems. According to the California Community Colleges Centers of Excellence, the solar industry in California is on pace to produce 40,000 new jobs by 2016.

More over the flip…

We are seeing real progress. Today’s global economic crisis can be combated with a strong commitment to green job growth. Unemployed construction workers with minimal retraining will begin installing solar panels and wind turbines. Today’s college engineering students will be the engineers of the future, designing new renewable power plants. Scientists will find additional resources and demand to research cutting edge renewable energies like tidal, algae, or fusion power. In a very real sense, the future is now.

So where do we go from here? First and foremost, we must recommit resources to education at all levels. The nonpartisan Public Policy Institute of California recently found that if current trends continue, California will have one million college graduates fewer than required to keep pace with our economy’s potential growth. As the PPIC explains, “Cuts in education funding work against the state’s long term interests. […] Unless decisions and actions are taken soon to improve educational outcomes for Californians, the state’s future economy and the prosperity of its residents will be compromised.”

California’s future business climate requires a well-educated workforce, yet we are near the bottom in per pupil K-12 spending. When we cut classes, remove extracurricular enrichment, and overstuff classrooms, we deprive our students of the tools they require to succeed in a competitive global economy. From biotechnology to Internet technology, much of California’s economic prosperity depends on a scientifically literate population, yet we are at risk of leaving a generation behind. We can do better.

Higher education is also at risk. I used to say California higher education is on a slow road to starvation, but the pace seems to be quickening with every passing year. Adjusted for inflation, student fees have more than doubled at the California State University and University of California, and more than tripled at our community colleges. In 1980, 17 percent of the state budget went to higher education. This year, higher education only received 10 percent. The result: furloughs of professors and staff, 40,000 qualified students will not enter the CSU system, and more than 2,000 will not enter the UC system. These are the engineers, technicians, teachers, and nurses that we need to grow our economy. Bottom line: the best investment is education. It has a $4.31 return for every dollar we spend. We must reinvest in education, and that is why I support an oil severance charge that would generate more than $1 billion yearly for higher education.

We are at the forefront of a green industrial revolution, and how we respond to this opportunity determines our state’s future. California’s success was based on a robust, entrepreneurial private sector and prudent state investments. Job growth, environmental sustainability, and quality affordable education are interconnected like never before. The federal government is providing us with some of the tools we require to jumpstart our economy. Let’s take the baton and make California the Golden State once again.

John Garamendi is California’s Lieutenant Governor, chair of the California Commission for Economic Development, a University of California Regent, and a California State University Trustee. As a State Legislator, he authored California’s first alternative energy tax incentive.