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Connecticut Catastrophe, Part 2: Solar Consumers Are NOT Utilities

By Frank Andorka, Senior Correspondent

What Happened: Yesterday, I promised you more information on why pending legislation in Connecticut that would eliminate net metering would be a disaster for the solar industry.

Yesterday, we dealt with the idea of “simultaneous consumption” argument (a compensation scheme so complicated you need an accounting degree to figure it out). Today, we’ll deal with the idea that solar consumerss are utilities.

The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire up your phones and get dialing is what I am saying).

The level of awful in the Connecticut solar bill that is careening drunkenly toward passage as the session comes to an end is breathtaking in scope and stupidity.

SolarWakeup’s View: Yeah, the genius just keeps coming from what I’ve decided to dub the “Connecticut catastrophe,” which in case you aren’t aware is Senate Bill (SB) 9, a bill hellbent on destroying the solar industry in the state once and for all.

For today’s lesson in bad solar ideas, let’s discuss the…SPECIAL idea that because solar consumers are generating electricity, they should be considered regulated utilities.

Yep. That’s a thing supposedly “serious legislators” are discussing.

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At issue here is something called the “average cost” calculation, which is how utilities set their rates. SB 9 wants to make the Connecticut catastrophe worse by lumping all solar generators – including residential installations – in with other massive electricity producers like utilities. The problem, of course, is that this puts an unreasonable burden on solar consumers to keep up with the reporting procedures and other regulatory hoops through which utilities must jump (I should say must RIGHTLY jump, given that their profit is guaranteed by the state).

Subjecting solar consumers to the same regulations as the utilities destroys the entire underlying rationale for homeowners to install solar arrays. As The Alliance for Solar Choice writes,

Pursuing an “average cost” approach instead of the standard value-based approach will undervalue solar energy, reduce consumer choice and jeopardize the viability of residential solar businesses. This may cause some residential solar businesses to shut down, particularly smaller, local solar companies with costs that are above-average.

This backwards approach could particularly impact low-income and middle class residents who rely upon no-money-down financing options to go solar. Most solar customers in Connecticut are below the median income level thanks to these financing options, which the new tariff could threaten.

Had enough yet? Wait until you see what this Connecticut catastrophe does to the community solar side of the business.

I can’t urge you strongly enough to get on the phones and tell Connecticut legislators not to destroy the state’s solar industry by passing this bill. No, seriously. Do it now. You only have six days left to stop this Connecticut catastrophe from moving forward.

More:

How To Screw Up Solar With One Horrid Bill (Connecticut Edition)

Here’s this asinine bill:

SB 9

Well-Funded Republicans Get Solar’s Hard-Earned Cash

By Frank Andorka, Senior Correspondent

What Happened: So Reuters reported this morning that solar companies are setting large piles of cash on fire in their parking lots…oh, I’m sorry, I misspoke. They’re actually funding Republicans. Wait, maybe I was right in the first place.

OK, I’m not a political naif. I know you have to give money to both sides to get things done, especially when the party that doesn’t support you is in power.

But seriously, solar industry? How many times do you have to get sand kicked in your face before you realize that being nice to the anti-solar side isn’t going to get you anywhere?

SolarWakeup’s View: It has long been a pet peeve of mine that the solar industry seems hellbent on playing nice with politicians who, given the opportunity, would completely destroy the solar industry on a heartbeat’s notice.

After all, it’s not state legislatures led by Democrats that are trying to gut net metering and other pro-solar policies around the country. And while it’s true solar is a popular issue among the voters, anyone who thinks voters get to weigh in on what these politicians are voting on doesn’t understand democracy (small “d”) in the United States in 2018.

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Which is why Reuters’ report that the solar industry has decided to provide more money to Republicans than Democrats this cycle just makes my head want to explode. Here are the details:

Overall, political action committees representing solar and wind companies have donated nearly $400,000 to candidates and PACs in the 2018 election cycle, including $247,000 to Republicans, $139,300 to Democrats, and $7,500 to independents, according to the Reuters analysis.

That marks a record. During the 2016 presidential elections, the first cycle during which the clean energy industry gave more to the GOP than to Democrats, Republicans received just over half of the combined $695,470 in political contributions from major wind and solar PACs.

To which I scream (startling the dog in the process): “WHY?”

Look, I’m no political naif. I’ve been steeped in politics since the age of 6, when I supposedly wanted to vote for my “Uncle Carty” for president (my Uncle Carty – a nickname – was not running for president, but a former peanut farmer named Jimmy CARTER was). I’ve been heavily involved in politics ever since, up to and including local politics. I’ve watched the sausage get made, and I do not have a weak stomach.

But in politics as in business, I’m all about return on investment, and outside of an ITC extension in 2015 (and we can debate how much of that was the result of fawning over Republicans at some other date), what has this “investment” gotten us? Wouldn’t it make far more sense to invest in politicians who might actually SUPPORT our priorities instead of merely NOT ACTIVELY OPPOSING them?

For reals – it’s time for us to get our priorities in order and support those who support us wholeheartedly without reservation. Otherwise, you’re just throwing good money after bad.

More:

Clean energy sector swings Republican with U.S. campaign donations

How To Screw Up Solar With One Horrid Bill (Connecticut Edition)

By Frank Andorka, Senior Correspondent

What Happened: The swath of destruction the Connecticut legislature is about to cut through the solar industry with their latest bill to replace net metering is breathtaking and stupefying to behold.

The absurdity of the legislation is so mindblowing I’m going to have to take more than one piece to do it justice, but it includes the illusory cost-shift, a buy-all, sell-all scheme, an arbitrary commercial solar cap….oh, yeah. This legislation is a beaut.

The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire up your phones and get dialing is what I am saying).

The level of awful in the Connecticut solar bill that is careening drunkenly toward passage as the session comes to an end is breathtaking in scope and stupidity.

SolarWakeup’s View: Connecticut Senate Bill (SB 9) is the perfect distillation of everything that solar opponents use when they’re trying to destroy solar industries in various states.

For today’s lesson in bad solar ideas, let’s just start with the legislature’s decision to eliminate net metering.

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As introduced, SB 9 moved solar power from net metering to a “sell all, buy all” system, meaning that homeowners with solar on their rooftops wouldn’t be allowed to use the electricity they produce themselves. Instead, they would have to sell all their electricity to the utility at a lower, wholesale rate. Then the homeowners would be required to buy all their electricity back from the utility at the higher retail rate. Solar advocates in the state say this is akin to having the utilities seize the solar panels from customers’ roofs and charging them for the privilege.

This is, seriously, one of my favorite anti-solar policies because, DID YOU READ IT? They want solar consumers to sell their power to the utility so it can be sold back to them at a higher rate. Somewhere, Bernie Madoff is smacking his forehead and saying, “Why didn’t I think of that?”

Pushback against this idiotic scheme has led solar opponents to say, “OK, fine. We won’t violate your property rights that way. Here’s another scheme, though, that we think you’ll LOVE!”

The replacement is called “simultaneous consumption,” which means that every kilowatt-hour solar consumers produce will be credited immediately, and then the public service commission will choose what the utilities will pay them for their excess production. ‘Cause, you know, that’s fair.

As The Alliance for Solar Choice (TASC) argues,

Its uncertainty would jeopardize the financibility of systems, which will disproportionately impact low-income customers who depend upon it. It also disadvantages working people who cannot change when they use electricity.

And that’s just the beginning of what’s wrong with this bill. Just you wait – if you think it can’t get any worse, wait until you see my next article.

More:

Here’s this asinine bill:

SB 9

Sources Say Sunnova Is Heading To Lucrative Florida Market

By Frank Andorka, Senior Correspondent

What Happened: Following a Florida Public Service Commission (FPSC) decision that third-party solar installations won’t be considered regulated utilities, residential solar giant Sunnova is set to get into the game, sources tell SolarWakeup.

The company has been quietly setting up its partner network in the state over the past year waiting for the right time to enter this lucrative market.

When they move into the state, Sunnova will be offering “solar finance agreements” (known everywhere else in the country as loans).

You don’t have to be a Kennedy Space Center rocket scientist to know that it’s time to move into the Florida solar market – you just have to be smart. Sunnova, clearly, is smart.

SolarWakeup’s View: It feels like I’ve been writing about Florida’s potential as a solar state for the entire seven years I’ve been in the solar industry. And as many times as I’ve written the story, that’s equally as often as I’ve been disappointed when the lucrative market I’ve predicted has failed to materialize.

It appears, however, that my prediction of a lucrative Florida solar market might finally be coming true (fingers crossed – I hate being wrong).

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Sources close to residential solar giant Sunnova, speaking on condition of anonymity to discuss the unannounced plans freely, have told SolarWakeup that an announcement of the company’s plans to enter the Florida market are imminent. No definitive timetable has been set for the announcement of the plans, but it could come as early as this week, sources say.

Honestly, I wish they’d hurry it up a bit – Floridians I talk to are desperate to install solar systems on their roofs but haven’t had the ability to do so for lack of solar providers.

It’s clear that Sunnova has known for a long time about the same decades-old report I also reported on last week, which indicates the state’s potential solar production could reach nearly 56 GWh annually by 2020 and has been planning accordingly.

I’d want to be part of that market, too – and I’m glad to see Sunnova is getting ready to take the plunge.

This story was updated at 12:13 pm ET on 5/1/2018 to clarify that Sunnova will be offering loans to solar customers, not leases.

More:

Could Decade-Old Florida Report Finally Be Relevant? Let’s Hope So

Florida Public Service Commission OKs Sunrun’s Petition – So It’s Full Speed Ahead