Tag: solar power

Will Massachusetts Solar Net Metering Caps Continue?

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Solar energy is thriving in the commonwealth of Massachusetts, but the clean energy trend has slowed considerably due to the current cap on solar net metering. Contributing to the decrease is the imminent expiration of Federal incentives for installation of solar energy. Solar net metering allows customers who generate their own electricity from solar power to feed their surplus into the grid, calculated as a percentage of peak electrical usage.

Solar Net Metering Caps Create Backlog

The current caps particularly affect the MetroWest service grid, which is already buying back the maximum amount of solar-produced electricity produced by commercial customers required by state law. This situation has created a waiting list of commercial customers who would like to install solar panel systems but are delaying installation until the caps are raised to make the projects economically viable.

Local business leaders have expressed hope that the solar net metering caps will soon be raised. In late June, the Massachusetts Senate voted 37–0 to raise the caps to 1,600 megawatts, up from the current caps of 1,000 and accounting for approximately 4–5% of the total energy generated statewide. The decision was passed as a part of a larger climate change preparedness bill. Another positive indicator is Governor Charlie Baker’s recent announcement that he plans to file legislation regarding the caps.

Solar Panels Collonial

Solar Detractors Speak Up

Not everyone is in favor of the solar initiative. Associated Industries of Massachusetts has spoken out against the Senate’s move, indicating it could add up to $600 million to the total electric bills of Massachusetts customers who do not have access to solar power. The group has indicated a lift in the solar net metering caps would only put money back into the pockets of the companies installing the solar arrays. Solar advocates say that AIM did not take into consideration the benefits associated with solar energy and merely weighed the up-front costs. Massachusetts has the fifth highest electricity cost in the continental United States.

Unless the Federal government acts, incentives for businesses that adopt solar energy systems will be scaled down in December 2016 and Federal incentives for residential projects will be eliminated. The incentives have spurred the Massachusetts solar industry as the state ranked second in 2014 with 9,400 solar industry jobs. The cost of installing solar arrays has come down in recent years, making them more feasible even without incentives.
Although the initial cost of installation has gone down, solar supporters advocate that it is still too early to remove government incentives as a motivating factor.

Solar Debate Heats Up As Massachusetts Raises Net Metering Cap

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The Massachusetts Senate convened last week and responded to on-going pressure by solar supporters with a vote to raise the solar power net metering cap. Net metering, part of the incentives offered to consumers to encourage clean energy development, allows utility users to sell their excess energy back to the grid. The cap represents a percentage of the peak energy usage and limits the amount of energy that solar power users can amass and sell back. Utility companies have argued against attempts to raise the limit, on the basis that consumers without solar power end up paying the difference. The decision to raise the cap was made to help facilitate the state’s goal of developing 1,600 megawatts of solar power by 2020.

The solar energy stipulation was a component of an expansive climate change preparedness bill, sponsored by Senator Benjamin Downing, who believes that the passage of the bill would approximately double the cap. The current cap limits net metering to 4% of a utility’s peak load for private consumers and 5% for public consumers with no limit on residential.

“There’s been a lot of discussion in the theoretical, but not enough in the actual, and the hope is that this is something concrete for people to react to, and I would hope that if the House or if the administration has a different way of going about this that they would put it on paper and we can get to what is our broadly shared goal,” Downing commented to reporters. The bill, which advocates the development of a plan for reacting to the potentially damaging effects of climate change and cutting back on greenhouse gas emissions, is headed to the House of Representatives. Its prospects remain unclear.

Regional utility companies have proposed that Massachusetts legislators support the imposition of a minimum fee on all electrical bills to include customers who generate most or all of their own energy in the cost of maintaining the electrical grid. If the bill is passed, the Massachusetts Department of Public Utilities would have the authority to disperse the costs associated with additional solar energy generated to other providers and service regions, thus relieving any single utility of the burden of the overall expenditures. The legislation would also shrink the gaps between service areas.

Currently, the cap has already been reached by National Grid, with Eversource close behind. According to Downing, the lines drawn between service territories are fairly arbitrary, and solar development in one county has the ability to benefit nearby towns covered under other service zones. Since the net cap was met this spring, green energy advocates have warned that enthusiasm and available solar projects may begin to disappear, putting Massachusetts at risk for losing its leadership position in the solar industry.

Since solar production began in 2007 under Governor Duval Patrick, the state has added 860 megawatts of solar energy to the power grid. With the end goal of 1,600 megawatts still looming, the solar community has been advocating for a lift to the net metering cap. Although unrestricted residential projects continue to move forward, larger projects for private and public properties have been put on hold. Janet Besser, vice president of the New England Clean Energy Center, has stated that while the sudden increase in solar power was not entirely expected, it is a good sign for the future, and her organization will work diligently to convince House lawmakers they would be prudent to encourage solar power expansion in the state by lifting the cap.

Solar Power Finally Gets Its Time In the Sun

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Solar power is on the rise and threatening to unseat coal and nuclear power as the primary source of our energy. While the technology to harvest energy from our nearest star is nothing new, advances in efficient collection and storage have positioned solar power to take its place as a major power supplier over the next 30 years.

Advocates of solar power recently called on officials to lift the caps on solar energy production, which has created a major deterrent for companies considering investing in the switch to solar, or even producing compatible equipment.  While opposition has been expressed, perhaps most obviously from existing utility providers, Massachusetts administrators are taking a measured approach to address the solar issue in a balanced manner with a focus on long-term planning.

This type of resistance in the US may explain why it’s trailing behind Germany, China, Italy, and Japan in solar power installations, however, the US is expected to increase its solar installations significantly over the next few years. It will be interesting to see if the anticipated growth in the US  is met in light of the strong opposition from utility companies trying to protect their bottom line.

Experts now suggest solar power could provide up to 10 percent of our global energy within the next decade. Already accounting for 1 percent of global energy production, solar is quickly gaining popularity as costs decline and access to photovoltaic equipment and infrastructure increases.

Capacity for solar production is expected to multiply rapidly and is predicted to offer up to 3k gigawatts of clean, renewable, usable energy. According to a new study by UBS, the convergence of increased energy demands, more efficient power storage, and affordable solar solutions have set the stage for solar power to become a viable energy source for home use. While utility companies will still be an important player in managing power storage and use as the transition progresses.

The UBS study suggests dramatic decreases in battery cost, up to 50 percent by 2020. Combined with the increased popularity of battery-powered cars and homes, the picture this analysis paints is clear: solar power has finally found its time to shine.