Regulatory Certainty Could Help Stabilize Michigan’s Market

By Frank Andorka, Senior Correspondent

Stability and certainty. Those two elements are always critical to building and expanding a solar industry. And a third element is supporting the Public Utility Regulatory Policies Act (or PURPA, as it is most often known in the solar industry.

Well, late last week Michigan decided to combine all three elements in their Public Service Commission (MPSC) finalized the rates and standard contract terms for Consumers Energy, one of Michigan’s biggest investor-owned utilities. In the ruling, they set the rates the utility must pay for energy and capacity from solar energy facilities and other independent power producers under PURPA.

Now that they know what rates they’ll be receiving, the ruling is expected to promote more investment in solar energy in the state, which has fallen well behind other Midwest states like Illinois and Minnesota when it comes to solar development.

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“The MPSC’s ruling provides much-needed certainty in the Michigan solar market, which has experienced delayed project development and a lack of substantial solar industry investment,” said Sean Gallagher, vice president for state affairs for the Solar Energy Industries Association. “With these rates in place, Consumers Energy can begin investing in cost-effective solar projects to the benefit of its customers. However, there is still more work to do, and how the MPSC rules on Consumers’ Integrated Resource Plan will play a big role in determining the future of clean energy in Michigan.”

With 118 megawatts (MW) installed, enough solar energy to power 18,500 homes, Michigan ranks 33rd in the country for installed solar capacity. Today’s decision paves the way for a dramatic increase in installed solar capacity in Michigan. Michigan’s solar market is forecast to add 605 MW of solar over the next five years, a 347 percent growth rate, the 5th largest percentage growth of any state. These forecasts could grow substantially, depending on the MPSC’s ruling on Consumers Energy’s IRP.

The MPSC originally determined Consumers’ avoided cost rates in an order issued last November, but was reviewing additional feedback provided by the solar industry, Consumers Energy and other stakeholders. Under federal law, these costs must be at or below the cost the utility would pay to buy power on the market or generate from its own portfolio. The MPSC also ruled that it will revisit a range of related issues in Consumers’ pending Integrated Resource Plan (IRP) proceeding that will be concluded sometime next year.

Washington Unveils Community Solar Rules Despite Concerns From Advocates

By Frank Andorka, Senior Correspondent

Community solar is taking the United States by storm, and it’s increasingly being used by states to provide access to solar to non-traditional solar constituencies like low-income and communities of color. And as Utility Dive reported this week, Washington is the latest state to announce the rules it will use to govern these projects.

To say they are a bit byzantine is an understatement, and solar advocates in the state told Utility Dive that they’re afraid the new regulations will have the opposite effect than the one intended.

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…the regulation comes from a place of concern over consumer protections and against for-profit entities entering the market and “overpromising the benefits of community solar to potential customers,” [Jaimes Valdez, policy manager at Spark NW] said.

However, “especially the housing agencies that are trying to develop community solar are overly burdened by incentives intended to apply to larger companies that are more sophisticated,” he added. “We hope there can be a longer term view of what community solar means outside of this incentive program and ways for people to actively participate in a renewable energy future … including communities of color that haven’t traditionally been able to access that solar.”

One of the problems is that the state incentive for community solar is capped at $110 million by statute, and the number of project currently in the queue have put it close to hitting its cap.

As advocates told Utility Dive,

Spark NW, along with NW Energy Coalition and Solar Installers of Washington, fears that the new regulations may prevent smaller entities, such as affordable housing groups or nonprofits, from clearing the layers of red tape needed to apply.

While Washington’s heart may be in the right place in trying to protect consumers, making community solar more difficult to access – and limiting the entities that can do it to large companies and/or utilities – defeats the democratizing (small ‘d’) effects community solar is trying to achieve. It’s time for the legislature to go back to the drawing board and rethink its approach to community solar so more people have the opportunity to participate in it.

Organic Valley Launches Community Solar Projects In Six Communities

By Frank Andorka, Senior Correspondent

It’s nice to see companies start putting their money where their mouth is.

Organic Valley, America’s largest cooperative of organic farmers and a leading organic brand, today announced details of the first-of-its-kind community solar partnership launched last year. The project enables Organic Valley to share the benefits of solar energy with its rural neighbors and become the largest food company in the world to be 100 percent renewably powered.

In October 2017, the company ambitiously committed to achieve 100 percent renewable power at its corporate facilities. Since pioneering this new model of community solar development, Organic Valley has unlocked solar beyond its needs.

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In the spirit of cooperation, 13 communities across the Midwest will also benefit from this partnership, including six in Organic Valley’s project portfolio. Beyond the company’s 12.3 megawatt (MWdc) project portfolio, an additional 19 MWdc will be constructed, resulting in over 31 MWdc of new solar in the region, including a 33 percent increase in the state of Wisconsin. Partners for the remaining renewable energy credits will be announced later this year.

The six communities within Organic Valley’s portfolio that will benefit directly from the community solar partnership include Arcadia, Cashton, La Farge, Merrillan, and Viola in Wisconsin; and St. Charles in Minnesota. When the projects begin generating power next year, the Arcadia array, sized at 6.78 MW, will be the largest solar array in the state of Wisconsin.

Every member of these communities will benefit from stable and low electricity rates and the environmental benefits of renewable power for decades to come. Nearly 10,000 residents in these communities will soon have access to the power of the sun.

“Organic Valley is a farmer-owned cooperative with deep roots in the rural Midwest, so it makes sense that we would work together to create new sources of energy right here at home that can be shared by all,” said George Siemon, CEO and a founding farmer of Organic Valley. “We are committed to achieving 100 percent renewable electricity for our cooperative, but also sharing the bounty of solar electricity with rural communities where we live and work.”

Speaking Truth To Money: Fossil Fuels Are Dying Industries

By Frank Andorka, Senior Correspondent

Let’s all take a moment to give a standing ovation to Amory Lovins, co-founder and chief scientist at the Rocky Mountain Institute. On Sunday, he stood before a group of investors from around the world – who control approximately $8 trillion in assets – and told them it was time to stop investing in fossil fuels because those industries are “on their last legs.”

That’s the news from the Fiduciary Investors Symposium at Stanford University, according to an article on Top1000Funds.com. Lovins not only delivered this hard truth to the investors, but told them they’d be foolish if they didn’t invest in the coming renewable energy revolution. From the article:

The electricity industry is undergoing its biggest transformation in centuries as supply shifts to modern renewables. Renewable energy production hit 1 trillion watts of capacity three years ago, the next trillion watts will be added in just four years, pushing fossil fuels out of the market, Lovins said. He added that fossil fuels were more at risk from competition than regulation.

“In the next 4-5 years, cheaper renewables will offset growth in all fossil fuels, tipping them into decline,” he warned.

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But it wasn’t just generic renewable energy Lovins had love for – he had particularly nice things to say about the solar industry. He said the cheaper solar becomes, the more people are buying it – and he pointed to the proliferation of solar not just in the United States but in China as well. He said the world is rapidly reaching a tipping point from which oil, coal and gas will not recover (he also sees buoying trends in the electric vehicle market and foresees a day when the internal combustion engine will be relegated to the ash heap of history).

It’s not that Lovins is saying anything new or particularly radical, at least not from the standpoint of the solar industry. What is important, however, is that he is speaking to the current and future investors in the solar industry. And he’s telling them it’s time to stop clinging to the investments of the past and exhorting them to charge into the brave new future of renewable energy (and specifically, as it turns out, solar).

Money, after all, talks. And if we can get investors with $8 trillion in assets on board with the Solar Century, then the future of this industry is truly as bright as the sun.

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Fossil fuel on last legs: Lovins