When it comes to national solar issues, it’d be easy to think the highly visible and hard-fought win for the ITC extension was a grand finale of sorts for solar lobbyists—that the hard work was done and the industry could coast on its latest legislative victory.
But the main lobbying group for the solar industry, the Solar Energy Industries Association, or SEIA, has been busy at work since Dec. 18, when the ITC was extended. First, it communicated thanks to all the solar advocates from coast to coast, and then it focused on new, pressing issues.
“I took about 10 minutes off,” said Christopher Mansour, vice president of federal affairs.
One both the national and state levels, where net metering concerns rule, lobbying efforts are keeping pace.
On the national level, SEIA’s main priorities in 2016 will be to protect and advance the Clean Power Plan (CPP) and to work with Congress to get pro-solar provisions into any congressional energy policy legislation, all while keeping anti-solar provisions from getting enacted.
One concern is a broad energy policy bill, the Energy Policy Modernization Act of 2015, the likes of which hasn’t been seen since 2007. Versions of the bill have been passed by the House and Senate. It is now in a committee of House and Senate representatives, where a final, compromise bill will be drafted. Once done, it will be sent back to the congressional chambers for final approval, and then to the White House for the president’s signature.
“This legislation contains several notable wins for solar energy,” said Mansour. “Chief among them are the inclusion of solar heating and cooling as technologies that can meet the federal government’s renewable portfolio standard, language directing the Energy Department to identify appropriate costs and benefits for the valuation of distributed generation solar, provisions to improve permitting of solar power plants sited on federal lands, and directing the Energy Department to study avian populations and to establish baseline scientific information.”
When it comes to the Clean Power Plan, Mansour said SEIA is combining forces with other organizations.
“There is the potential to have an amendment added to appropriations to prevent the Clean Power Plan from moving forward, so we’re working with other associations and groups that are supportive of the CPP to prevent those riders from being implemented,” he said.
Net metering advocates continuing battles across the U.S.
Net metering, which allows a solar customer’s utility meter to turn both ways, is an important economic element in today’s solar business. Net metering increases demand for solar energy systems, which creates jobs for installers, electricians and manufacturers working in the solar supply chain.
Yet utilities, who often have close relationships with regulators, view net-metering policies as lost revenue opportunities, according to SEIA. And they have demonstrated resistance to net-metering schemes across the United States.
Most recently, utilities got their way—and then some—in Nevada, where the PUC voted in December to triple the charges solar customers pay to connect their system to the grid, while at the same time cutting reimbursement for extra generation by 75%. The decision, which even affected previous solar owners, put a hold on the state’s solar industry and led a few national installers to exit the market.
Simply put, net metering disrupts utilities’ century-old business model.
“I think it stems from the fact that utilities are having trouble defining what the future looks like,” said Sean Gallagher, vice president of state affairs at SEIA. “And while utilities have largely begun to accept utility-scale solar because of the attractive generation profile and economics, many utilities feel threatened by distributed generation. They feel that in part because they don’t know what their business will look like in five to 10 years.”
To limit the power utilities have over net metering, SEIA and other solar advocacy groups have been working in individual states to enact or retain positive net-metering policies. SEIA’s team of half-a-dozen people, supplemented by lobbyists and lawyers, focuses on states where positive legislation is possible.
“We engage in both state legislators and state commission in our priority state across the country to try to establish, maintain and defend markets and policies that promote solar deployment,” Gallagher said.
Among the bright spots for net metering is California, which extended net metering for the next three years in late January. Massachusetts also passed legislation that increased net-metering caps, although at a reduced compensation rate for systems above 25 kW. And a proposal in Maine would replace net metering with a system that still maintains a sustainable market, with a provision to revert to net metering if it doesn’t work as planned.
“The California example shows net metering still makes sense as a policy mechanism in states with high solar penetration and high retail rates,” Gallagher said.
Hawaii has also been in the news lately. The state has solar penetration rates above 15% and retail rates about $0.40 per kWh. Gallagher said it is reasonable to look for alternatives to net metering.
“I had a Hawaii commissioner say that with 40-cent rates, full retail net metering was an intelligence test for customers—they could get a two-year payback on a solar system,” Gallagher said. “What Hawaii has done now is create a system that treats generation consumed on-site as load reduction and energy transported to grid is compensated at a rate that creates a five- to nine-year payback to the solar customer.”
Polling consistently puts consumer support for all forms of solar power at more than 80% across the political spectrum. The trick is getting policy makers to also see the tangible benefits of the technology.
Solar policy timeline:
Dec. 18: Congress extends ITC
January 28: California PUC votes to continue NEM
February 10: Supreme Court places temporary stay on the CPP
February 13: Nevada PUC implements harmful NEM changes
February 22: U.S. celebrates installing 7.3 GW of PV in 2015
March 3: SEIA forms committee for mounting manufacturers
March 11: Oregon adopts a 50% RPS
April 6: Massachusetts turns corner on NEM cap problems
April 15: CEO Rhone Resch announces resignation from SEIA
May 3: U.S. celebrates one-millionth solar installation