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Maryland Releases Its Value of Solar Report. SPOILER: Solar Is Good For The State

By Frank Andorka, Senior Correspondent

Maryland’s status as a solar state has waxed and waned over the years. Under Governor Larry Hogan, the ups and downs have been rather violent.

On at least two occasions – most notably the Clean Jobs Act in 2016 – Hogan has vetoed legislation that would have encouraged solar and other clean energy development. And unfortunately, the legislature lacked the votes necessary to overturn them – at least in the Senate.

But if Hogan decides to stand in the way now, he’ll have his own Public Utilities Commission with which to contend. After all, the Commission released a report two weeks ago that focused on putting a value on solar and, to no one’s shock, the value of solar is good.

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Like most value of solar reports that have been commissioned around the country, the independent report says solar is a good way to develop Maryland’s new electricity infrastructure, based on three different categories of measurement:

bulk power system and emission reduction benefits (utility-scale solar)
macroeconomic benefits (jobs); and
distribution system benefits (behind the meter solar).

In all three cases, the Commission’s report suggests that not only is solar a net benefit to everyone in the state, but more solar should be developed posthaste. The final paragraph of the executive summary states this clearly:

The large potential for additional BTM and utility scale solar development and the significant value that solar can bring to the bulk power system, distribution system, and to the residents of Maryland through macroeconomic and health benefits represent a considerable opportunity for the state. The state and investor owned utilities should consider developing policies and enhancing utility system planning processes to encourage additional cost-effective solar development.

In recent years, Hogan has stood in the way of solar and said it wasn’t worth developing. Now his own Public Utilities Commission says otherwise. Only time will tell whether Hogan comes around and allows Maryland to become the leading solar state it has the potential to be.

Read the whole report here:

MDVoSReportFinal11-2-2018

Partnership Allows Marylanders To Marry Clean Energy And Batteries

By Frank Andorka, Senior Correspondent

Maryland residents will soon have the opportunity to marry clean energy and battery storage, thanks to a partnership between CleanChoice Energy and Swell Energy.

As power outages become more prevalent as violent, climate-change induced storms rock the U.S. mainland, home battery storage is increasingly becoming a necessity, not a luxury. Thanks to CleanChoice and Swell, Marylanders can install home energy backup and perhaps qualify a state tax credit of up to $5,000.*

Last year, more than 36.7 million people – including 88,000 Marylanders – were affected by 3,526 reported power outages across the country.

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“People need reliable backup power now more than ever. Climate change is fueling extreme weather that makes the grid more vulnerable to power outages at the exact time that we all depend on electricity for nearly everything. Marylanders can now have peace of mind knowing their lights will stay on when the power goes out,” said Tom Matzzie, CEO of CleanChoice Energy. “Home battery backup makes our homes more resilient, helps move us closer to 100% clean energy, and can make dirty generators obsolete.”

“This program enables us to offer Maryland CleanChoice Energy consumers a radically simple, cost-effective clean energy and smart home solution,” said Matthew Rising, CRO of Swell Energy.

Home batteries store energy from the electric grid and provide seamless backup power to run essential items during power outages of up to 12 hours**—long enough to get through nine out of 10 utility company power outages.

Home energy batteries are a clean alternative to dirty generators that run on polluting fuels including gasoline, propane, natural gas, and diesel fuel. Burning fossil fuels contributes to climate change and unhealthy air pollution; for example, diesel exhaust has been classified a potential human carcinogen.

Swell offers batteries to homeowners as-a-service, and virtually combines the storage capacity across these batteries to provide energy and grid services to its utility and retail electricity partners.

*Tax credit information based on Maryland Energy Administration Energy Storage Tax Credit Program and should not be construed as legal or tax advice nor does it guarantee availability, qualification, or amounts of incentives or credits.

**A standard home will use 1-2 kW/hour. The total time that a battery can power your home during an outage depends on your individual usage.

Maryland Launches Six-Project Community Solar Pilot Program

By Frank Andorka, Senior Correspondent

Maryland today launched a six-project community solar program that is looking for subscribers, according to an article in today’s Baltimore Sun.

Community solar programs are now all the rage, as solar continues to spread and solar companies are realizing that it can go beyond individual homeowners and businesses putting solar arrays on their roof. It’s the perfect hybrid of utility-scale solar providing electricity for residential and consumer customers.

The program has been in place since 2015, when the Maryland legislature authorized it. But writer Scott Dance asserts that it hasn’t taken off because of NIMBY-ism combined with arguments over where the appropriate placement for the arrays are.

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As Dru Schmidt-Perkins, the former president of the land conservation group 1,000 Friends of Maryland, told the Sun:

People are very much in favor of going for a lot more renewables, for whatever reason. That support comes to a screeching halt when land that is perceived to be valuable for other things, whether a historic viewshed or farming, suddenly becomes a target of a location for this new project.

Now, the conflict between farming and solar is a real concern in Maryland although, as we wrote about yesterday, perhaps it should be less of a concern than it is. But such concerns have halted development in many Maryland counties, as the Sun reports:

Such concerns have at least temporarily stalled the momentum for solar across the state. Anne Arundel County had at least five small community solar projects in the pipeline in December when officials decided to pause development for eight months. Baltimore County officials imposed a four-month moratorium on solar development before passing an ordinance last year to limit the size and number of solar farms.

It remains to be seen if such concerns outweigh the hunger for community solar in a state that has been among the leading states in the Mid-Atlantic region for solar development. The six new projects the government has launched should give everyone a better picture of how much work still needs to be done in those rural areas to bring these farms to fruition.

(To hear an excellent recap of how similar concerns are being overcome in Illinois, listen to the latest edition of the SolarWakeup podcast, where Jon Carson of Trajectory Energy Partners outlines his strategy for bringing more community solar to rural areas.)

More:

Maryland launches community solar program, creating new green energy opportunities — but also potential conflicts

Two VOS Studies Vary Widely: Can You Spot The Major Difference?

By Frank Andorka, Senior Correspondent

What Happened:Utility Dive has an excellent piece describing the 88% difference in two VOS studies, one in Montana and one in Maryland.

The Maryland VOS study, prepared by the state’s Public Service Commission, values solar highly. The Montana VOS study, prepared by the state’s largest utility, values solar less highly. Can anyone spot the difference?

While the Utility Dive analysis goes far deeper into the specifics, it’s no surprise that these reports turned out the way they did.

Is the image of the sun setting on a utility pole too heavy handed? I worry it’s a little heavy handed.

SolarWakeup’s View: Let’s get this out of the way first: Go read the Utility Dive explanation of two value-of-solar studies – one in Montana, the other in Maryland – which come to two deeply different conclusions about how solar should be valued when it comes to net metering and other compensation structures. It is excellent, and it is detailed. I could not do a better job myself.

But I want to look at one factor that UD slides over that may be the single-biggest determining factor in why, according to the two studies, solar is 88% more valuable in Maryland than in Montana. That factor is who paid for the study.

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In Maryland, the study was prepared by the state’s Public Service Commission, a supposedly independent body whose job it is to balance the needs of ratepayers and utilities to come to an equitable balance between those two seemingly divergent interests. As such, it has no particular agenda to push; it can afford to look at as many facts as possible – and take as many stakeholder views into account as possible – before rendering its decision.

Montana’s study, on the other hand, was paid for by the state’s largest utility, in whose interest it is to value solar less highly because of its own vested interest in keeping solar penetration limited. After all, the more solar penetration there is, the fewer people are dependent on the utility to supply electricity. That means a smaller customer base, which means fewer profits, which means unhappy investors. When there’s a study being done by one of the party’s involved in a dispute, it can’t surprise anyone when the study comes out in that party’s favor.

I don’t mean to imply either study is perfect, nor am I suggesting that who paid for the study was the sole factor in outcome. But I am suggesting it plays a significant role – and is something activists on the solar side should account for whenever one of these VOS studies comes out against us.

More:

How two value-of-solar studies add up to no clear value of solar (Utility Dive)