Utilities Push Solar Charge Hikes, Regulators Resist
Utilities across the US are seeking to raise charges for customers, disproportionately impacting those who utilise solar power. Meanwhile, significant progress has been made in recognising the value of distributed energy resources, and community solar initiatives are gaining traction.
In a setback for solar customers, utilities are pushing for increased fixed charges or minimum bills. This trend, reported by the North Carolina Clean Energy Technology Center, weakens the financial viability of solar ownership and discourages energy efficiency. For instance, Texas utility Oncor proposed a hybrid fixed charge based on each customer's maximum historical demand.
However, regulators have been cautious in their responses. On average, they approved only 16% of the requested charge increases, with no utility securing the full amount. This was seen in New York, where regulators ordered the Value of Distributed Energy Resources (VDER) as part of its Reforming the Energy Vision (REV) process, a positive step for the solar industry moving away from net metering.
States are also taking proactive steps to promote community solar. Virginia became the 17th state to adopt a statewide community solar policy. Additionally, some states are considering or taking action on net metering policies, with 21 states involved and 65 bills introduced in state legislatures by mid-April 2017.
While utilities' attempts to increase charges pose a threat to the solar market, regulators' cautious approach offers some respite. The recognition of the value of distributed energy resources and the growth of community solar initiatives indicate a shift towards a more balanced energy landscape. However, the solar industry must remain vigilant against potential setbacks.
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