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).
  • Connecticut catastrophe

    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

    New Colorado Law Encourages Energy Storage

    By Frank Andorka, Senior Correspondent

    What Happened: Colorado Governor John Hickenlooper signed into law Senate Bill (SB) 9, which explicitly provides the state’s citizens the right to install energy storage.

    • It also calls on utilities to streamline the interconnection processes for adding storage to existing net-metered systems.
    • It instructs the Colorado Public Utilities Commission (CPUC) to create a regulatory framework surrounding such installations.
    • Under the new legislation, Colorado utilities can’t require the installation of new meters to monitor energy storage.
    • The law will go into effect 90 days after the legislature adjourns, which is expected to be on or about August 8.

    SolarWakeup’s View:  Colorado now joins four other states in their decisions to increase support for energy storage.

    As might be expected, Colorado Governor John Hickenlooper’s decision to sign SB 9 into law won widespread praise from the Solar Energy Industries Association as well as Colorado SEIA.

    “This new law cements Colorado’s status as one of our nation’s renewable energy leaders,” said Sean Gallagher, SEIA’s Vice President of State Affairs. “Pairing energy storage with solar will allow consumers to have the cleanest, most reliable and most affordable electricity. The solar industry thanks Governor Hickenlooper and the Legislature for continuing to support the state’s solar market by taking this important step on storage.”

    “Energy storage paired with solar energy gives consumers and businesses a way to be truly energy independent, and we commend our state’s leaders for declaring that citizens have a right to use this exciting technology,” said Rebecca Cantwell, COSEIA’s Executive Director. “We believe that this new law will spark more interest in going solar and will pave the way towards adding storage to many projects.”

    The most interesting implication of this legislation, however, is the fact that the ability to install energy storage is now a legal right, something only a handful of other states have done to date. While many states are exploring ways to increase the amount of energy storage their states can install, there’s something particularly poignant about making energy storage installation a right.

    I join SEIA and COSEIA in saluting Governor Hickelooper – it’s a nice-time Friday story that’s a great way to start off the weekend.

    More:

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