In January, Kentucky Energy and Natural Resources Committee Chairman Jim Gooch introduced a bill that would amend the compensation rate for solar users who sell the excess power they produce back to the utility companies. The 14-year-old system compensates solar users at the full retail price of the electricity, versus the wholesale price for these sales. This practice ultimately shifts costs to non-solar customers. While criticisms of net metering often center around the adverse effects on low-income individuals, evidence shows that the problem also extends to the majority of small businesses who don’t want or can’t afford solar. FBAE all business owners should fairly share in the fixed costs necessary to maintain the energy grid.
FBAE drafted a letter to the Kentucky Legislature, supporting Chairman Gooch’s legislation, H.B. 227. The bill will amend Kentucky’s net metering compensation system by paying producers at the wholesale rate instead of the full retail rate they currently enjoy. Additionally, the bill is not retroactive, and will not affect current users in the state.
Bad actors in the solar industry are making it harder for residents of New Mexico to use solar power on their homes. The state’s Attorney General has filed 17 civil complaints against Vivint Solar including fraud, racketeering and unfair business practices. Cracking down on bad actors sends a message to the industry to clean up its act.
It’s time for solar to clean up its act
By Daniel Stevens / Executive Director, Campaign for Accountability
Wednesday, March 21st, 2018
Last week, New Mexico Attorney General Hector Balderas filed a 17-count civil complaint against Utah-based Vivint Solar. Included in the litany of charges against the company – which sells and leases rooftop solar panels in New Mexico and other states – were fraud, racketeering and unfair business practices.
Regrettably, irresponsible and even criminal actions by some in the rooftop solar industry could deter consumers from moving toward solar energy and away from fossil fuels as part of the effort to slow the pace of climate change.
As residents of the “Land of Enchantment” know, New Mexico has the good fortune to be one of the sunniest states in America. Consistent sunshine and favorable public policy are helping fuel the state’s huge boom in rooftop solar. Not only can solar power be good for the environment, but it can also boost New Mexico’s economy. According to The Solar Foundation’s recently released Solar Jobs Census, employment in New Mexico’s solar industry increased an incredible 48 percent in 2017. In short, the rooftop solar industry is doing well in New Mexico.
Nevertheless, as more door-to-door salesmen pitch rooftop solar, it is important for consumers to be aware of the risks. For more than a year now, my organization, Campaign for Accountability, has been documenting how some rooftop solar companies exploit vulnerable consumers. In December, we released a report detailing our analysis of thousands of complaints from across the country. We found that some rooftop solar companies have misled consumers about the true costs of installing solar panels, have poorly installed panels damaging homeowners’ roofs, and left many with long, expensive leases and higher monthly utility bills, rather than the reduced rates promised.
CfA’s research reveals that two of the worst offenders are SolarCity, now owned by the car company Tesla, and Vivint. Together, these two companies were the focus of more than half of all the rooftop solar complaints received by the Federal Trade Commission (FTC) between 2012 and 2016. The Better Business Bureau (BBB), which has not accredited Vivint, also has received hundreds of complaints against the companies.
Last year, New Mexico joined Florida, Nevada and California in requiring solar companies to disclose costs and other critical contract details to potential customers. This is an important step to limit some of the most predatory practices, but our investigation suggests more needs to be done to protect consumers.
AG Balderas’ findings mirror our own. For example, his complaint alleges that Vivint has bound New Mexico consumers into 20-year contracts that require them to purchase the electricity generated by their rooftop solar system at rates that increase by more than 72 percent over the course of the contract. And it’s not just a few bad actors. He found that Vivint’s sales model systematically requires salespeople to falsely tell customers that if they sell their homes, the company will remove the solar system at no cost and cancel the contract (they won’t), and to use high-pressure techniques to coerce customers into signing contracts without carefully reading them. Also troubling, he found Vivint’s actions sometimes cloud homeowners’ title, making it difficult for people to sell their homes.
The attorney general’s lawsuit should force rooftop solar companies operating in New Mexico to clean up their acts, but it remains to be seen whether other states will follow New Mexico’s lead.
Until the industry cleans up its act, government regulators must work to ensure that consumers are protected from the clearly shady business practices in which Vivint has engaged. The industry as a whole needs to self-police and rid itself of bad actors to ensure that consumers don’t lose faith and walk away from this important source of clean energy. After all, the proliferation of solar panels across New Mexico and the nation can protect the environment and create economic opportunity.
Campaign for Accountability is a government and business watchdog.
Recent expansion of solar power users has increased utility bills for non-solar users, but Vermont is taking steps to stop these increases. Even with the expansion of solar in the state, utilities are still seeing increased costs to produce and distribute electricity to customers, but fewer customers are paying for the services, even though all users are benefitting from the service. The changes to net-metering by the legislature will help all energy users in Vermont.
Net-metering takes its toll on Vermont
The explosion of net-metered solar power in Vermont has sparked a lively debate in renewable energy circles, putting the future of solar under the microscope and pitting some renewable energy advocates and developers against the state’s Public Utility Commission and power companies.
Caught in the middle are Vermont ratepayers who, critics maintain, have subsidized the rapid expansion of net-metered customers, including some who generate so much excess solar power that they actually pay nothing for electricity.
“We have a broad ratepayer concern,” said Riley Allen, deputy commissioner of the Department of Public Service, speaking recently about a new rule, referred to as “Net-metering 2.0,” designed to make the rate structure more equitable.
The Public Utility Commission recently issued new net-metering rules for Vermont that has left some solar developers squawking — especially those putting up systems beyond the homeowner scale.
A look back
Net-metering has been around nationally since the late 1970s.
The premise is simple: A homeowner or business has solar panels installed, connects them to the grid, and any excess power generated by the panels is sold to a local utility at a fixed cost, offsetting the power the homeowner or business has used and lowering their monthly power bill or, in many cases, zeroing it out entirely.
And it has been successful in Vermont, creating a boom in solar projects over the last few years.
In terms of the number of permits issued, most of the net-metering program in Vermont is made up of small-scale systems under 15 kilowatts, which you see often on houses or in yards. By capacity, however, more than 80 percent of the net-metering program in Vermont is made up of the largest category of systems — those that generate between 150 and 500 kW, much like the rows of panels you see today in fields.
Next month, net-metering in Vermont turns 20.
What started originally as a small-scale effort to encourage homeowners and farms to produce at least some of their own electricity from a renewable source has become the yardstick by which Vermont now measures the health of its solar industry.
Technically, net-metering can be applied to several types of renewable energy generation: methane, hydro, wind or solar. In any case, a homeowner or business can have a system installed, tie it to the grid and the power generated will offset the power they’ve used.
But solar is by far the most utilized in Vermont.
Under state law, a homeowner’s utility has to pay a certain rate for the excess power that is fed back to the grid. Typically that rate, about 20 cents per kilowatt, was more than or close to the retail rate most Vermonters pay for power. Before its growth spurt over the last few years, net-metering was a boon to customers and utilities alike.
In fact, the energy generated by net-metered solar lowered the demand for power during peak loads, which reduced capacity and transmission charges. This was true for both the state and New England electric systems.
The unprecedented growth of solar projects and the net-metering program in the last few years — a pace unforeseen by legislators and regulators alike — has actually diminished the overall value solar provides to utilities and their customers.
“Statewide, the solar industry in Vermont has seen a pretty dramatic reduction in the amount of solar being permitted and installed, on the order of magnitude of 50 percent drop in 2017 compared to 2016,” said SunCommon’s James Moore. “The vast majority of that reduction came in those larger (150 to 500 kW) projects. There are many fewer of those happening in Vermont.”
But SunCommon, the largest Vermont-based solar company, has remained fairly insulated from any downturn. That is due in part to its size, but also to a clear focus on small projects of 15 kW or less.
“Our focus has been helping Vermonters and small businesses go solar,” said Moore.
“We employ more than 100 Vermonters here at SunCommon and all of those folks are focused on helping households and small businesses invest in our clean energy future and do their part to address climate change.”
Without Net Metering 2.0, Moore said he believes 2017 could have been an even bigger year for solar than 2016, but the Department of Public Service maintains that a balance needed to be struck.
“We believe in the sector and its part in our long-term renewable energy future, but we want to see it developed in a way that is sustainable, and can be well-absorbed into the system; not just from a grid integration standpoint, but also in fairness to other ratepayers that aren’t participating,” Allen said.
“While we hope to foster the development of a robust distributed-resource environment for independent developers, we are also mindful of the impact and implications for the broader base of ratepayers that are potentially impacted by the pace with which we pursue those ambitions,” Allen said.
Vermont depends on the largely natural gas-powered regional grid for roughly two-thirds of its power needs and by lowering the demand for power during peak load times, the costs associated with the regional grid were lower, as well.
But over the last several years, solar has penetrated the energy market so extensively that peak loads have shifted toward the end of the day, and in some instances, after dark, when solar panels are no longer converting sunlight into electricity and no longer helping power companies lower their costs.
But utilities are now paying premium retail rates for the ever-expanding net-metered solar being generated in Vermont, and they are not seeing the reduction in capacity, transmission and regional grid costs they once did.
Non-solar ratepayers have been feeling that upward rate pressure as a result. Green Mountain Power cited net-metering costs as one of the reasons for its 5 percent rate increase this year.
According to its 2016 report, the Public Service Board conservatively estimated that net-metered solar power costs Vermont ratepayers $21 million a year more than if that power was bought elsewhere. In fact, a larger solar project that doesn’t qualify for net-metering is actually cheaper per kilowatt than a net-metered project. A moderately sized solar plant under the standard-offer program would cost ratepayers 7 cents to 9 cents less per kilowatt hour generated.
“The net-metering program is intended to offer utility customers financial incentives to develop new, small-scale renewable energy resources,” the report explains. “Renewable energy acquired through the net-metering program costs more than alternative sources of renewable energy.”
That’s a costly gap, solar watchers caution.
“Therefore, the net-metering program has an important, but limited, role to play in realizing the state’s renewable energy goals,” the report goes on. “Large customers should not be permitted to leverage the incentives offered by the net-metering program to deploy fleets of net-metering systems to offset their own significant power costs at the expense of other rate payers.”
Need for change
That’s where Net-Metering 2.0 comes in.
Net-Metering 2.0 lowers the rates power companies will be required to pay for new net-metered customers by roughly one to two cents per kilowatt hour for smaller systems, and closer to three to five cents for larger systems. The rate is tied to a system’s size and siting.
It also tightens loopholes on charges that net-metered customers were not paying, making it more equitable.
Several charges on a power bill are not related to the number of kilowatt hours used by a customer on a monthly basis. For instance, there are charges for “customer service,” “energy efficiency” and an “electric assistance” charge. With the rapid development of net-metered solar projects in the state, utilities were seeing the pool of customers paying those charges dwindling.
The new net-metering rule redefines those excess monthly charges as “non-bypassable,” meaning net-metering credits can’t be used to pay for those line items on a power bill — closing a loophole and preventing that pool from shrinking further.
Critics argue the rule change followed heavy lobbying of the Legislature by utility companies unhappy at the loss of revenue from net-metering. It has also raised questions about the commitment of Gov. Phil Scott to renewable solar energy programs that help combat climate change, meet Vermont’s goal to be 90 percent carbon-free in energy use by 2050, and create high-paying jobs.
Entrepreneur companies — like All Earth Renewables — argue the rule change discourages new investment in the solar industry, with some prominent players planning to leave the state. That affects development of larger projects.
Public officials involved in the energy and utility sectors said the Legislature tried to strike a balance between the need for renewable energy and savings for consumers, versus the impact on power companies that have to maintain the transmission lines and earn a reasonable rate on their investment.
Allen noted that Green Mountain Power serves 77 percent of the Vermont electricity load and reports that it is 60 percent reliant on renewable energy and 90 percent carbon free. Two of the next three largest utilities, Washington Electric Cooperative and Burlington Electric Department, report that they are 100 percent renewable, he said.
“The costs of net metering … are borne by all electric customers, whether or not they receive net metering credits. Consequently, there is a transfer of costs rooted in the net metering system.” Massachusetts energy regulators determined that the cost of net-metering increases the cost of electricity on all residents. This change marks a growing trend across the country to change harmful net-metering practices.
Massachusetts approves new demand charge for Eversource’s net metering customers
Demand charges are very controversial among renewables and clean energy advocates, and Massachusetts’ decision has set the stage for intense debate over rate design.
“Massachusetts needs to step up its game and embrace smarter electricity rates and more customer control,” Daniel Sosland, president of Acadia Center, said in a statement. He said eliminating optional residential time-of-use rates and approving demand charges shows the state “is moving backwards instead of forward.”
Eversource, however, argued it faces “displaced distribution revenues” of more than $8 million annually that should be collected from net-metered customers. The DPU agreed, saying “the companies have demonstrated a cost shift from net metering to non-net metering customers by identifying costs directly imposed by net metering facilities on the distribution system.”
“The costs of net metering … are borne by all electric customers, whether or not they receive net metering credits,” regulators concluded in their order. “Consequently, there is a transfer of costs rooted in the net metering system.”
The Acadia Center was critical of both the decision to eliminate optional time-of-use rates as well as the imposition of demand charges.
“Given the lack of sophisticated metering in Massachusetts, there is no way for consumers to know what time this peak occurred and what actions could be taken to manage these charges,” the group said. “As a result, consumers will be paying the highest possible rate for this charge without being provided the information needed to understand the cause of these costs.”
Acadia added that because an individual’s peak usage doesn’t necessarily align with the system’s overall peak, “consumers are not being provided incentives to reduce energy usage in a way that could benefit the whole electricity system.”
Demand charges typically bill consumers for the period of their highest usage — typically monthly. Normally found in the C&I sector, utilities have started proposed demand charges for residential customers, particularly solar. But most of those proposals were rejected, until now.
In November of last year, regulators decided the initial phase of the case, but that result did not please Eversource. The DPU’s approved a $12.3 million increase for NSTAR, about 78% lower than the utility requested. For WMECo, regulators approved a $24.1 million increase, about 30% lower than requested.
Following that decision, an Eversource spokeswoman said the utility was “disappointed with the deep cuts the DPU made to our rate request because we feel we provided sufficient and detailed documentation to support the total increase we requested.”
The order also included $45 million in investments in electric vehicle infrastructure, and authorized up to a $15 million investment to construct a 5 MW energy storage facility on Martha’s Vineyard, and up to $40 million to construct a 12 MW energy storage facility on Cape Cod.
Full post at: https://www.utilitydive.com/news/massachusetts-approves-new-demand-charge-for-eversources-net-metering-cust/514477/
Former Mayor and current Mayoral candidate Horace Feliu has come out against South Miami’s recent solar power mandate on new homes and certain expansions or additions to homes. “Government should not be mandating non-safety related initiatives to residents”
City of South Miami Mayoral Candidate Horace Feliu Goes on the Record about Mandated Solar Panels
Going green is a noble cause but not without its challenges. Just ask Horace Feliu who actually created the first Green Task Force in the City of South Miami in2009 when he was serving as Mayor. The role of the Green Task Force is to provide the South Miami City Commission with suggestions on integrating Green and LEED certified designs in both residential and commercial buildings. Their goal, which is still in effect, is to promote initiatives that would reduce the city’s carbon footprint.
Going green is getting more and more into focus as of late. Residents of the City of Miami just this month voted to tax themselves in order to create a half a billion-dollar bond that was specifically about curbing the effects of climate change. In a city that is as resistant to taxes as it is susceptible to that very climate change, that vote underscores the importance of municipalities putting a concentrated and strategic focus on evolving into greener cities.
The City of South Miami, however, has overstepped normal governmental authority boundaries by mandating that homeowners install solar panels when building new homes or when making improvements or additions to existing homes. Homeowners alone would have to bear the cost of installation, maintenance and increases in their homeowner’s insurance. Homeowners would also be exposed to what many consider to be government sponsored predatory lenders as a way to fund the addition of the solar panels.
“The role of government in ‘going green’ should be in informing residents of the latest advancements in efficiency and design so they are aware of options that would reduce the carbon footprint,” said Horace Feliu, former mayor and current mayoral candidate of City of South Miami. “Government should not be mandating non-safety related initiatives to residents but rather providing incentives and waiving fees to promote change. Building affordable homes is a concern since this new mandate will increase costs and keep many potential homeowners out of the market.”
The mandating of solar panels has been a hot topic issue with many South Miami residents. For many older residents the expected 25 years to break even on the investment is simply not worth the cost, especially given that the systems only have an expected life span of 30 years. Older homes, which are slated for demolition and reconstruction, have also lost the value of replacement with the mandated solar array.
Feliu has thrown his hat into the Mayoral Ring once again for this and several other reasons that have him concerned as a long time resident of the city. While he believes that the city of South Miami must reduce its carbon footprint, he believes in enabling not dictating to citizens with ways to go green.
“After 3 very successful terms as the Mayor of City of South Miami I think there is a ton of work that I began that I am looking forward to continuing in the correct manner, such as the green imitative,” said Feliu. “This is something that will be important not just for me and my children but for my grandchildren and my great grandchildren if handled correctly and judiciously.”
Solar energy is a particularly important tool for addressing the global climate challenge, while helping to meet a massive increase in future electricity demand, according to a comprehensive report released today by the MIT Energy Initiative.
But while solar costs have fallen dramatically in recent years, MIT researchers warned that continued rapid growth in solar is not an inevitability.
One of the recommendations included in the 332-page report is for the United States to move away from net metering policies for distributed solar — contrary to what many solar advocates would say.
“I think we’ve got to find a better way to do it, because I think net metering is going to result in a pushback against residential solar,” said Richard Schmalensee, economics professor at MIT’s Sloan School of Management, on the sidelines of the report launch in Washington, D.C.
“We’re not anti-residential, because some people love the thought of solar on their roof, and if you’re going to subsidize solar, there’s no reason not to subsidize them,” he added. “But there’s no reason to excessively subsidize them, or to subsidize them in a way, as net metering does, that’s going to produce a pushback.”
Net metering compensates distributed solar generators at the retail price for electricity they supply to the grid, rather than at the wholesale price received by grid-scale generators. This gives an extra incentive to distributed solar customers by reducing their contribution to covering distribution costs, while shifting those distribution costs onto utility customers who don’t have solar.
Because cost-shifting has become so controversial in certain states, Schmalensee said it’s in solar’s “best interest” to do away with retail pricing in net metering policies, and to treat utility- and residential-scale solar “more or less the same.”
Several other reports have come to a similar conclusion, such as a recent reportcommissioned by the Louisiana Public Service Commission that drew ire from solar advocates. However, several more studies (including in Nevada, Vermontand Mississippi) have found just the opposite: that distributed solar does not impose a significant net cost to ratepayers, and in many cases produces a net benefit to all ratepayers.
Some of the benefits listed in a 2013 study, commissioned by the Solar Energy Industries Association, were that distributed solar allows for reduced investments in transmission and distribution infrastructure and deferred investments in expensive and polluting conventional power plants, as well as providing an affordable way to meet state renewable energy mandates.
Schmalensee countered these claims. He acknowledged that distributed solar could save on transmission costs in some locations. But, in general, he found that distribution costs would go up because of the technical upgrades needed to accommodate two-way power flow.
Also, he said it’s true that distributed solar could reduce the need to build new, expensive thermal power plants, but so could utility-scale solar and energy efficiency. So there’s no justification for giving residential solar preferential treatment, he said.
On cost, the MIT study found that utility-scale solar is inherently less expensive than residential-scale, and is likely to remain less expensive despite foreseeable cost reductions in residential. Therefore, utility-owned projects are a more affordable pathway to meeting renewable energy requirements.
“Residential solar doesn’t have greater external benefits; it has greater external costs,” said Schmalensee.
But according to Ken Johnson, vice president of communications for the Solar Energy Industries Association, the MIT report paints an “incomplete and flawed picture of solar economics.” It largely ignores commercial and industrial rooftop solar, he said, which often have cost structures similar to those of utility-scale solar, but without some of the complexity of ground-mount systems.
“The cost differences between rooftop and utility-scale solar are based, in large part, on inflated soft costs,” Johnson added. “We’re working hard to change that. Through improved public policies, such as cutting red tape and streamlining permitting and interconnection processes, soft costs could be lowered dramatically in the future.”
Keep the ITC and get rid of the state RPS
While the MIT report took issue with incentives for residential solar in terms of the way most net metering policies are structured today, the authors called for continued government incentives for solar power overall.
Letting the federal Investment Tax Credit (ITC) expire at the end of 2016 would be “unwise,” because it could lead to a sharp drop in solar deployment, according to Schmalensee. But the ITC’s focus on subsidizing solar investments, as opposed to solar power generation, is misguided, he said.
And the ITC isn’t alone. There’s a long list of solar subsidies in the U.S., such as state tax credits and property tax exemptions, that need to be redesigned to reward solar output, in his view.
“If we’re about solar generation, we should subsidize solar generation,” said Schmalensee.
MIT economists also made a case for bringing state renewable energy standards under a unified national program, which they said would reduce costs by allowing for unrestricted interstate trading of renewable energy credits. This approach would also maximize the value of solar, by directing investments toward sunnier places.
Finally, in terms of the technical advances needed to realize increasing solar adoption, the report recommended that the federal government concentrate its research and development dollars in emerging thin-film technologies, rather than continue to support crystalline silicon technology (c-Si), which is currently dominating the the solar energy market.
Now that c-Si modules and their component cells and input materials have reached scale, there’s an incentive for the private sector to make the technology more competitive. As a result, there’s a weak case for continued government support in current c-Si technology, according to MIT.
Thin-film technologies — so long as they’re made from earth-abundant materials — have several advantages over c-Si systems: they’re lighter, have lower manufacturing complexity, and are capable of being installed in flexible formats. These attributes offer the promise of reduced balance-of-system costs, which today make up the majority of overall solar deployment costs. But to realize these savings, emerging thin-film technologies need to become much more mature.
“Therefore, to increase the contribution of solar energy to long-term climate change mitigation, we strongly recommend that a large fraction of federal resources available for solar research and development focus on environmentally benign, emerging thin-film technologies that are based on earth-abundant materials,” the authors concluded.
View original article here.
Net metering at retail rates forces non-solar customers to pay for the upkeep of the power grid. Is it fair for non-solar customers to be saddled with this massive cost while solar customers benefit? Utah recently decided to change its net metering policy to make it fair for both solar and non-solar customers.
Should you be forced to subsidize your neighbor’s solar panels?
Should Utahns who don’t want or cannot afford to install solar panels on their home be forced to pay for those who can? That’s the crux of the current net-metering debate in our state.
Net metering allows solar customers to sell excess electricity generated by their rooftop panels back to the utility companies.
A study last year found that solar customers, who rely on and use the electrical grid as much as traditional customers, are not paying their fair share for its use.
What’s more, under the current net-metering arrangement, Rocky Mountain Power, Utah’s electric utility company, pays three times more for energy generated by residential solar panels than it pays for energy generated by commercial solar farms.
As a result, solar customers essentially receive a $400 subsidy every year, which amounts to a $6.5 million cost to the utility company. If things don’t change, as more people install solar panels on their homes, that number could skyrocket to $78 million.
This is bad news for non-solar customers who will foot the bill when Rocky Mountain Power increases prices to cover these losses.
The situation is particularly urgent for low-income households that spend an ever-growing portion of their income on electricity and suffer greatly from higher energy prices. For the 198,000 Utah households that earn less than $30,000, 18 percent of their monthly budget is already swallowed up by energy costs.
What’s worse, a rate increase doesn’t just mean higher utility bills, it also means higher costs for everything else. Local grocery stores forced to pay higher energy rates to light their stores and refrigerate food will likely pass on that cost in the form of higher prices. For families struggling to make ends meet from one month to the next, increased electricity costs could be catastrophic.
And when you consider that more than 60 percent of the state’s 22,000 rooftop solar owners earn more than $100,000 per year, it’s easy to see that the current rate structure is a patently unfair transfer of wealth from less fortunate consumers who can’t afford solar panels to the more well-off Utahns who can.
To level the playing field for all Utahns and protect the more vulnerable in our community, Rocky Mountain Power submitted a request to the Utah Public Service Commission to create a fairer rate structure.
Of course, solar companies that care only about protecting their customers’ lucrative subsidy are attempting to block the correction.
They argue that many customers who choose solar to save money on their electric bills will be disinclined to do so if the new prices requested by Rocky Mountain Power go into effect. And they disingenuously claim that fixing the rate disparity is meant to stifle competition and will kill jobs and harm a “thriving” industry.
But they fail to recognize that cheaper energy prices make Utah a desirable locale for businesses. Utah enjoys some of the lowest energy prices in the country, close to 20 percent lower than the national average. A potential rate increase to cover the ballooning costs of net metering could jeopardize our state’s ability to attract and retain businesses and jobs across all industries.
Moreover, if the solar industry is propped up with forced subsidies from people who cannot afford the product or simply don’t want it, is it really thriving?
The Utah Public Service Commission must eliminate the unfair subsidy for rooftop solar users. For their part, instead of relying on an artificial boost, rooftop solar companies should strive to make products and services that are truly affordable.
Contrary to a number of fake news sites’s claims, solar panels can’t replace the electric grid following a hurricane. As the Palm Beach post published following Hurricane Irma’s hit on Florida,
“The vast majority of solar systems are what’s known as “grid-tied.” If the power goes out, the photo-voltaic system automatically disconnects. If the grid has no power, the solar system has no power, experts say.
Even if the sun is shining, the panels will not generate power.”
We’ve all seen the articles claiming that if only there were more rooftops with solar on them people could have power after a major storm causes power to go out. But it just isn’t true. And this isn’t because the utility companies are trying to punish solar customers, it’s for safety, as Alyssa Jean Schaefer from Southern Alliance for Clean Energy explained to the Post:
“The biggest reason for this shutdown is safety. As soon as possible after the grid goes down in a hurricane or tropical storm, power companies get to work trying to bring it back on, that means hundreds, or even thousands, of workers and emergency response teams are performing hands on work on power lines in affected areas. If residential solar panel systems are connected to the grid and generating power, this poses an electric shock risk to any worker. Incorrectly connected generators pose the same risk and come with warnings not to connect to the grid.”
The only way to have power from your solar panels without the main electric grid is if you have a system with battery backup. And battery storage doesn’t come cheap. According to Greentech Media, a 5.6 kW system with enough battery storage to provide resiliency during an outage would cost more than $45,000.
After Hurricane Irma: Why solar power can’t replace storm-damaged grid
Susan Salisbury – Palm Beach Post Staff Writer
Hurricane Irma knocked out electricity to millions of Floridians, as well as people in Georgia, Alabama and the Carolinas last week. At the outage peak on Sept. 11, 7.8 million utility customers were in the dark.
What about those with solar systems on their homes? Were they also without power?
Yes. The vast majority of solar systems are what’s known as “grid-tied.” If the power goes out, the photo-voltaic system automatically disconnects. If the grid has no power, the solar system has no power, experts say.
Even if the sun is shining, the panels will not generate power.
Alissa Jean Schafer, solar communications and policy manager at the Southern Alliance for Clean Energy, explained in a recent blog that the standard, grid-connected solar system cannot necessarily be counted on to replace the power grid if you are without power after a storm.
“If the grid goes down, your solar panels are ‘down’ as well, not providing any electricity to you. If you’re not sure what kind you have, they are probably connected to the grid,” Schafer wrote.
“The biggest reason for this shutdown is safety. As soon as possible after the grid goes down in a hurricane or tropical storm, power companies get to work trying to bring it back on, that means hundreds, or even thousands, of workers and emergency response teams are performing hands on work on power lines in affected areas. If residential solar panel systems are connected to the grid and generating power, this poses an electric shock risk to any worker. Incorrectly connected generators pose the same risk and come with warnings not to connect to the grid,” Schafer said.
If you have a rare off-grid system, complete with a battery back-up, then it would work, Schafer said.
Of course, even when the grid is working fine, solar systems only produce power when the sun is shining.
Rooftop solar will soon get major subsidies directly from the pockets of Utah power customers thanks to a settlement between the solar industry and Rocky Mountain Power. Currently Rocky Mountain Power is forced to buy excess electricity from homes with rooftop solar at over three times the cost of other power sources.
Settlement would let Rocky Mountain Power charge nonsolar customers to pay for rooftop solar power
Charges could factor into Utah customers’ bills by mid-2019
By Emma Penrod
Utah’s Rocky Mountain Power customers could end up paying more directly for power generated by their neighbors’ solar panels, under the terms of the company’s recent settlement with the solar industry.
The settlement has been praised for preserving, at least for now, most of the financial credits that customers with rooftop solar arrays receive from Rocky Mountain Power when they generate surplus electricity.
Solar industry leaders and other clean-energy advocates cut the compromise deal with the state’s largest utility in an effort to replace an earlier Rocky Mountain Power proposal. Advocates feared that plan to introduce a three-part billing structure for solar households had the potential to halt the industry’s growth.
But the fine print of the new agreement — which hinges on how solar residential customers get reimbursed under what is called “net metering” — also includes a provision letting Rocky Mountain Power to pay those power credits with money raised by increasing the power bills of all Utahns.
The settlement’s authors say the charge is only temporary and would amount to a few cents on customer’s monthly bills at most. But representatives from the few groups opposing the settlement argue it is unfair to non-solar customers.
“Utah customers will have to pay additional charges that would not exist in the absence of the [settlement],” Steven Michel, chief of policy development for environmental group Western Resource Advocates, wrote in testimony submitted to Utah’s Public Service Commission. And yet, Michel said, there is still no evidence that Rocky Mountain Power needs this income to cover the costs of services associated with residential rooftop solar arrays.
The state Public Service Commission (PSC) is set to review the settlement later this month.
If the current terms are approved, solar customers who have signed up for Rocky Mountain Power’s net metering program before Nov. 15, 2017 will be grandfathered into the utility’s existing pay-back program for nearly 20 years. That would bring them credits on their bills worth about 10 cents per kilowatt hour of surplus power their rooftop panels generate.
Those who sign up after that deadline will be considered “transition” solar customers. For the next three years, they will receive a credit worth a little over 9 cents per kilowatt hour of surplus power.
Rocky Mountain Power argues it could buy solar power on the open market for just 3 cents per kilowatt hour — were it not for a state law that effectively requires the utility to buy its residential customers’ surplus power at a higher rate.
So, under the proposed settlement, to recoup those added costs from paying above market rates for electricity, Rocky Mountain Power would be allowed to charge additional fees to all its Utah customers — in effect, some argue, forcing non-solar customers to subsidize higher prices paid to solar customers.
Those charges would be applied to customers’ power bills via something called the Energy Balancing Account, a mechanism previously allowed by state regulators to let Rocky Mountain Power add surcharges to customers’ power bills when it gets hit with unexpected expenses, such as a sudden spikes in the cost of natural gas for its power plants.
Rocky Mountain Power spokesman Spencer Hall said it makes sense to use the Energy Balancing Account to charge these new fees because the amount of surplus power that residential solar panels generate tends to fluctuate and is difficult to predict.
“When we buy something, our customers buy it,” Hall said, “and this is a mechanism that enables us to recover unexpected costs.”
Hall said if the Public Service Commission approves its proposal, customers could start seeing solar-related charges on their bills as early as May 1, 2019.
Not surprisingly, Utah consumers and businesses have mixed feelings about the deal.
In principal, the national Consumer Energy Alliance, which advocates for power customers, said it opposes policies that shift costs from private power generation onto utility customers who do not have solar panels.
But James Voyles, policy counsel for the Washington D.C.-based group, said its Utah members haven’t come down strongly on either side of the recent settlement. Some of Utah businesses within its ranks approve of the new charges, Voyles said, while others oppose them.
Voyles nonetheless praised attempts to negotiate the settlement. “It is our hope,” he said, ”that all parties involved keep the most important stakeholder in mind — families and businesses.”
Others involved in closed-door negotiations that produced the settlement declined to discuss its details, including the proposed use of Energy Balancing Account charges. Western Resource Advocates, which participated off and on in the settlement talks but ultimately did not sign on, declined to discuss the charges, referring instead to its written testimony submitted to the PSC.
Clean air and energy advocates at HEAL Utah, one of the parties that did sign the agreement, called the Energy Balancing Account provision “concerning.” But the group declined to discuss the issue further.
Sara Wright, executive director of Utah Clean Energy, another party to the settlement talks, said that the new charges weren’t meant to be permanent and would be reconsidered in coming years.
“It’s not a done deal. It’s not permanent forever and eternity,” she said, declining to comment further.
The state Office of Consumer Services has also signed onto the settlement. Its director, Michele Beck, said parties to the settlement do not all agree about whether households with rooftop solar panels actually cost Rocky Mountain Power more money than other customers. But, Beck said, the compromise will allow the new charges only temporarily, until a new study of Rocky Mountain Power’s rates is completed, sometime around 2020.
“Solar advocates believe that there aren’t current subsidies, and this is a partway solution,” Beck said. “This is an important interim step that moves toward removing the subsidy, but some remains.”
Technically, Beck said, the utility’s customers already pay for net metering credits through their power bills, just not directly. But by assigning a specific monetary value to those credits, the proposed settlement lets Rocky Mountain Power apply those costs to power bills in a more direct way.
“They’re already having to pay, it’s just not quite so explicit,” Beck said. “Will it raise the rates? That’s not clear, because there are hundreds, maybe thousands of moving parts behind the Energy Balancing Account.”
But any increase, Beck said, would likely be so small that when spread over all the utility’s customers, “it’s going to be lost in the rounding.”
An Arizona couple is questioning the practices of a solar panel firm that installed panels on their home without their knowledge or permission. The firm’s practices lead to an audit by the IRS that cost the couple more than $11,000. Fraudulent firms like Clean Energy Systems create problems for customers looking to install solar.
Couple questions solar panel installation
PHOENIX – A Valley couple says their roof is covered with solar panels that they can’t use.
David and Marcy Edwards say the panels were installed in 2014, but that they never actually signed up for them.
“It surprised me because I had just come in from off the road in my truck, and there were three or four guys on my roof,” he says. “I’m thinking maybe Marcy went through APS or one of these people that are knocking on your doors constantly saying ‘oh you need to go solar.’”
Wife Marcy says she didn’t sign up for the panels, but few weeks before the panels were installed, her tax preparer asked if they would be interested in getting solar.
“I said yeah we’d be interested in doing that and then I never heard anything from anybody,” she says.
With no agreement made, and no contract signed, they moved on. Then one day without warning or a contract, the panels appeared and they say they had no idea who they belonged to.
“I was kind of waiting on someone to come by the house and say well here’s your bill or let me know we’re the company that put this on your house or something,” he says.
He says that wouldn’t happen for another year and a half.
“I have a note that was put on my door by a gentleman and he said Mr. Edwards we’ve been trying to get ahold of you so you can get this solar turned on for you,” he says.
David says the company, Clean Energy Systems, wanted him to sign a lease for the panels. He refused, asking for the panels to be taken down and his roof repaired. He says he went back and forth with the company without a resolution.
The couple found that the solar company had a relationship with their tax preparer, and according to the IRS, so did they.
David says in February 2016, “the IRS provided us information that said we were in a partnership with the company— with Clean Energy Systems. We’re not in a partnership and we never signed anything.”
He says they got a notice that the company was being audited for 2013 tax year.
But that wasn’t the only surprising news. They too received a letter saying they were personally being audited, for a $250,000 loss from the partnership.
“I think I told him, ‘You’ve got to be kidding $250,000?’ He wasn’t kidding,” Marcy says.
The couple says it went back to the place where their taxes were prepared, Heritage Tax Services in Sun City.
“They would not respond, they would not answer his calls, they wouldn’t answer his messages so he finally went there and got a copy of the return from them,” Marcy says.
They say the return they got from the preparer showed a loss of $71,000 not $250,000 that was on the documents that the IRS provided. The Edwards say both returns showed that they received a refund of more than $11,000 but that they only received about $3,000.
“I’m dumbfounded by the whole thing,” David says. “It’s so far-fetched it’s hard for me to even believe.”
The Edwards had to pay back more than $11,000 to the IRS despite saying they only received a $3,000 refund.
We contacted Heritage Tax owner Phillip Scafetta, he eventually responded by email saying in part “I explained how this worked that it was based on trust and the taxes would be adjusted when deemed necessary to pay for the solar system.”
He also says that the panels were placed on their home without a contract because “unfortunately the beginning process is based on trust and I told them that,” and “The entire process was halted because they said that they didn’t approve anything.”
Scafetta goes on to say, “All my due diligence confirms to me that the tax code is very complicated and I was directed on how to complete the tax return by the IRS and other companies that deal with very wealthy taxpayers. I was able to bring this concept to individuals instead of large corporations benefiting from NOL (net operating loss). Only sophisticated Corporate CPAs and Tax Attornies [sic] understand the concepts.”
Scafetta confirmed that he is not a CPA or tax attorney.
He also says he changed the loss from $250,000 to $70,000 “since they disagreed to continue the solar project.”
Clean Energy Systems and owner Charles Kirkland did not return our calls but the company is fighting a tax adjustment imposed by the IRS.
The solar panels on the Edwards roof are no closer to being taken off or turned on but they say they hope they can help prevent others from making their mistakes.
“I think it’s pretty unfair and I hope it doesn’t happen to anybody else,” Marcy says.
Read original and view video at: http://www.abc15.com/news/let-joe-know/couple-questions-solar-panel-installation