Maryland Solar: Let’s Keep a Great Thing Going Strong

Marylanders can feel pretty proud. Thanks to our progressive policies, we have made tremendous progress deploying solar and developing a vibrant industry.  This is especially true if you consider the fact that the solar carve-out went into effect only 4 years ago. If states had solar résumés, few could boast the following bullet points. But Maryland can.

• Almost $100 million dollars in solar investment in the past 6 years

• Home to 114 solar-related businesses

• Legislators who strongly believe in the value of clean energy

The solar carve-out of Maryland’s RPS, which became law in 2008, has obviously boosted solar growth in the state immensely. The current solar carve-out within the RPS assures that 2% of Maryland’s energy will be derived from solar by 2022. This has been the impetus for the economic growth, growth in energy security and improvements to our environment. As beneficial as the RPS has proven itself, it is not perfect.

Unfortunately, the demand rate of the current RPS from 2015-2017 will cause a period of stagnation followed by a rapid demand—a glitch that makes the current RPS curve look a bit like a hockey stick (see below). Though we certainly enjoy hockey from time to time, the RPS curve is not where a hockey stick belongs. Again, see below.

Thankfully, a bill is gaining momentum that will correct this market stagnation and benefit Maryland in the process in more ways than one:

Senate Bill 791/ House Bill 1187 will accomplish the following:

• Add 10,000+ jobs to the Maryland economy by 2018
• Boost Maryland’s economy with $3 billion in solar investment in the next 7  years and $144 million in tax revenues from jobs in the next 8 years
• Maintain all consumer protections and exempt existing contracts

The bill has gained numerous sponsors, and many legislators realize the significance of this bill on Maryland solar businesses—from one-man companies to the biggest of the “big guys.” This bill, at its core, is a simple correction to the hockey stick, intended to smooth out instability in the market and balance out supply and demand. However, it’s much more than that. This bill is a job-creator. An investment-driver. A clean air-maker.  A puts-Maryland-on-the-map kind of bill.

We can’t afford to let this opportunity pass by.

HOW YOU CAN HELP:

•   Call and e-mail key legislators (see list below) in support of the bill. A form letter for your e-mail is provided at the end of the page. Feel free to use the talking points from the form letter when you call the legislators as well.

Sen. Anthony Muse- Email: anthony.muse@senate.state.md.us; Phone: (301) 858-3410

Sen. Catherine Pugh- Email: catherine.pugh@senate.state.md.us; Phone: (301) 858-3738

Sen. Delores Kelley- Email: delores.kelley@senate.state.md.us; Phone: (301) 858-3399

Sen. Allan Kittleman- Email: allan.kittleman@senate.state.md.us; Phone: (301) 858-3395

Sen. Barry Glassman- Email: barry.glassman@senate.state.md.us; Phone: (410) 836-2400

Del. Jeannie Haddaway-Riccio- Email: jeannie.haddaway@house.state.md.us; Phone: (301) 858-3523

Del. Dereck Davis- Email: dereck.davis@house.state.md.us; Phone: (301) 858-3558

Del. Kelly Schulz- Email: kelly.schulz@house.state.md.us; Phone: (301) 858-3028

•   Go a step further and contact your own Senator and Delegate here, and demonstrate your support for this law with a phone-call or e-mail (see talking points below). 

•   Attend the Committee hearings on the bill. The hearing for H.B. 1187 is on March 8, and the hearing for S.B. 791 is on March 20. Details may be found on the hearing schedule webpages below.  

House Economic Matters Committee Hearing Information

Senate Finance Committee Hearing Information

• PLEASE Join us FRIDAY, MARCH 9 for a MARYLAND SOLAR SOCIAL MEDIA DAY to raise awareness and support of #HB1187. Follow us on Twitter and retweet our posts on Friday or create your own!

Be sure to use the hashtags #IsupportMDSolar and #HB1187. Tweet @MDVSEIA if possible so we can keep track of the support as well!

Follow us on Facebook and LIKE and SHARE our statuses on March 9.

Check out the Social Media Day flyer.

____________________________________________________________

Feel free to copy and paste the following language into a message to the representatives, and please add your own personal comments:

Dear _______,

As a Maryland resident, I want you to know that I support all you have done for our communities and the state. The upcoming legislation pertaining to the Maryland Renewable Portfolio Standard (S.B. 791/ H.B. 1187) is of upmost concern to me, as it directly impacts our state’s economy and future well-being in a time when every little bit counts.

The new legislation will create 10,000 solar jobs by 2018, generate over $3 billion in investment, and provide for stable growth for the solar industry.  These are jobs and investment that Maryland needs in these pressing economic times. We all recognize that energy independence is not only a domestic necessity, but is also a matter of national, environmental, and economic security. Further, this legislation will demonstrate that the State of Maryland is a leader in fostering the energy technologies of tomorrow.

I support this particular bill and hope that you are able to concur with me in this matter, by voting in support of (S.B. 791/ H.B. 1187). This bill will bring tangible benefits to our community and our state.

Thank you for your time in heeding this call and serving this great state.

Sincerely,

______________

Maryland’s Solar Future: Francis Hodsoll Reports at MD Clean Energy Reception

ANNAPOLIS, MD—

How do we turn “green” into gold?

This was the question posed by the Maryland Clean Energy Center at its Legislative Reception, “Transforming the Energy Landscape: Turning Green to Gold” on Wednesday of this week.

Policy makers, local representatives, and business leaders convened to share a dialogue on the major clean-energy related topics that are currently facing the General Assembly. The success of Maryland’s clean energy economy—turning “green into gold”—often relies heavily on these policies.

The event featured speakers such as Malcolm Woolf, the Director of the Maryland Energy Administration and Senator Thomas “Mack” Middleton, and our own Executive Director, Francis Hodsoll, who reported on the recent successes of the solar industry locally and nationally and the policies that will help us ensure a strong future for Maryland solar.

So, where do we stand with solar in Maryland, and in the U.S. more generally? Here’s a re-cap of Francis’s report on the world of solar.

Solar sees success in the face of challenge

• Bringing together policy makers, the clean energy businesses and other stakeholders allows us to chart the path to a clean, sustainable energy future.
• Collectively, we have had much success, but we now have tremendous challenges: 95% of today’s energy infrastructure supports the technologies of yesterday.
• The fabric of our laws and regulations that define the markets and regulate the businesses support and protect the energy technologies of yesterday.
• These factors and our proclivity to resist change and see obstacles rather than opportunity create real hurdles to the development and deployment of the energy technologies of the future

MDV-SEIA’s Role in the Clean Energy Economy

• Our members have built the solar industry in MD – we worked with many of you in this room to design the policies, we advocated, and together successfully enacted the laws and rules that define our markets and govern our businesses.
• Those businesses that we built represented an estimated 40% job growth last year.
• Q3 2011 solar industry achieved 140 percent annual growth. Predictions are that Q4 was stronger than the third quarter.

Solar at the National Level

• Today solar industry employs 100,000 Americans with 5,000 businesses
• Solar has become mainstream for corporate America including companies like Target, Walgreens, Whole Foods, Johnson & Johnson, Safeway and others.
• Nearly 9 out of 10 Americans support the development and growth of solar energy.
• For the past 4 years, 89% of Americans—80% of Republicans, 90% of Independents, and 94% of Democrats believe that the United States should develop and grow our supply of solar energy.

Solar in Maryland

• In June 2011, SEIA recognized Maryland as one of the national leaders in solar development.
• Maryland now ranks 16^th among all US states for installed solar capacity.
• Over the last 5 years, Maryland’s investment in solar grew from under $1 million in 2006 to over $100 million in 2011.
• Maryland has 114 solar-related businesses!
• These statistics are incredible given the solar carve only came into effect in 2008.

So… now what? 

The legislative priority for solar in Maryland is S.B. 791: Renewable Energy Portfolio Standard- Solar Energy and Solar Water Heating Systems.”

• Maryland has achieved remarkable growth, but we are about to hit a bump in the road. The current RPS requirements have a growth hockey stick built into them. Essentially this Bill is a technical fix that will have a dramatic impact on jobs.
• The good news is that the dramatic drop in prices gives the industry ability to deliver more solar at a lower cost. 

What are the bill’s benefits?

• S.B 791 creates over 4,000 solar jobs (nearly twice that of the current legislation) and adds more than 10,000 jobs across the Maryland economy by 2018.
• S.B. 791 advance MD economic goals with 3.3 billion in direct investments over the next 7 years.
• New tax revenues resulting from job growth will total $144 million in the next eight years alone.
• This bill helps offset 1,300 MW of inefficient and expensive fossil-fuel produced peaking power plants.

Costs- residential and commercial

• MEA and MDV-SEIA have both separately concluded that the maximum impact is $0.19 cents on a residential bill
• The impact on commercial customers is about one-tenth of one percent.
• Lets put this in perspective: 4,000 jobs, an additional $1 billion in direct investment over next seven years for 0.19 cents per month or one-tenth of one percent.

Other Legislation to Watch

• SB 595 Electricity, Pinske & Rosapepe– Community Energy–Generating Facilities and Net Energy Metering
• HB 258, Haddaway – Renewable Energy Portfolio Standard – Sale or Transfer of Solar Renewable Energy Credits – Elimination of Minimum Required Term
• SB 677, Senator Rosapepe – Solar Water Heating Systems and Billing Services – Prince George’s County

Stay tuned for more information about how you can get involved in advancing Maryland’s clean energy economy during this legislative session. 

Check out Maryland Clean Energy Center’s website: http://mdcleanenergy.org/

Solar Businesses Start the Year off Strong in Virginia

Renewable Energy Businesses to Unite in Richmond on January 19th

Richmond, VA—

Next Thursday, renewable energy businesses from across the state of Virginia will convene in Richmond to voice concerns and priorities to Virginia’s General Assembly. The day will begin bright and early at 8:30 with a briefing on the Renewable Energy Legislative Agenda at the Richmond Marriott.

Businesses who participate will have the opportunity to visit with legislators, attend a press conference in the State Capitol building and a reception with legislators in the evening. The impressive list of speakers includes Lt. Governor Bill Bolling and Terry McAuliffe of Greentech Automotive. Attendees will also hear from several other engaging speakers such as Aviv Goldsmith of Fishermen’s Energy, Scott Sklar of The Stella Group, and Bill Greenleaf of the Richmond Region Energy Alliance.

During last year’s Renewable Energy Business Lobby Day, 40 renewable businesses participated and made over 60 visits with legislators. Organizers of the event are hoping for an even greater level of participation in 2012 to inform the Virginia General Assembly about the concerns for renewable energy businesses in the Commonwealth.

Register today to present a strong voice to the General Assembly and voice the concerns and interests of your renewable business. Find your legislator here.

Interested in sponsoring the 2012 Renewable Energy Business Lobby Day? Contact Eileen Levandoski at eileen.levandoski@sierraclub.org.

Check out the press from last year’s Renewable Energy Business Lobby Day:

http://vasierraclub.org/2011/01/first-renewable-energy-business-lobby-day-comes-to-richmond/

http://www.businessweek.com/ap/financialnews/D9KSAKN80.htm

http://clarendon.patch.com/articles/groups-say-va-energy-projects-generate-jobs

Rob Garagiola: Dedicated to Maryland’s Clean Energy Economy

Rob Garagiola.

To renewable energy supporters in Maryland, Rob has delivered a cleaner energy future for Maryland, more solar jobs, and energy efficiency.  

 “Maryland Senator Garagiola has consistently championed all solar friendly legislation and often as the sole sponsor,” says Francis Hodsoll, Executive Director of the Maryland-DC-Virginia Solar Energy Industries Association (MDV-SEIA).  “Rob understands the need to invest in the future of energy supply and the associated economic and environmental benefits.  If you support a sustainable future and the economic growth from investments in clean, new energy technologies, we urge you to support Rob’s campaign for Congress.” 

Rob received a degree in Political Science in 1994 from Rutger’s University, and enlisted in the U.S. Army Reserve shorty after graduation. He served as a Sergeant in the 450^th Civil Affairs Battalion (Airborne) and in the 150^th JAG Detachment. A strong leader and thinker, Rob also earned his J.D. from George Washington University’s Law School in 2001. After first being elected as a Maryland State Senator in 2002, Garagiola became the Maryland Senate Majority Leader in 2011. Garagiola has been a member of numerous committees, including the Finance Committee, the Joint Committee on Federal Relations, Joint Information Technology Committee, and the Spending Affordability Committee, among others.

Garagiola has served on the Task Force on Renewable Alternative Fuels, and he has been a tremendous leader in lessening Maryland’s dependence on fossil fuels and growing the number of green jobs in Maryland. Chesapeake Climate Action Network named Rob a Climate Champion in 2011, and the Maryland Clean Energy Center awarded Garagiola with the Legislative Leadership Award in 2011. In addition, Garagiola has received MDV-SEIA’s Solar Energy Champion numerous times.

Let’s go back in time and take a look at some of the major milestones for solar in Maryland.

Remember the Solar Energy Grant Program?

Garagiola sponsored it.

The solar carve out in the Renewable Portfolio Standard?

Yep, Garagiola sponsored it.

That time they included solar hot water heating systems as an eligible resource in the RPS?

Garagiola was there, standing behind the legislation.

How about the legislation requiring the Maryland state government to reduce its own energy consumption by 10% from 2005 levels by 2010?

 You guessed it. Garagiola was a sponsor.

Project VoteSmart offers a quote from the Interstate Renewable Energy Council regarding Rob’s dedication, “Beginning with his development of the state’s solar grant program and through to 2007, Senator Garagiola spearheaded the effort for a historic ‘all in one’ bill — Maryland’s Senate Bill 595 — bringing interconnection, net metering, and a gigawatts-class best practices solar standard. From square one through a tough fight in the dramatic final hours, Senator Garagiola was a true leader. More than any other individual, his technical savvy, personal conviction, and tactical brilliance brought Maryland from the ‘back of the pack’ to a position of national leadership.”

 Maryland is a better place because of Rob’s leadership, and the solar industry’s growth in Maryland is just one instance of how his leadership has brought about positive change for the state.

Show your support for Rob Garagiola in 2012.

Useful Links:

 Garagiola for Congress

 Rob Garagiola’s State Senator Profile

 Rob Garagiola’s Facebook Page

 Rob Garagiola’s Twitter Page

Solar Energy Focus Offers Insight, Inspiration to Attendees

November 17-18, Washington, D.C.–

Last Thursday and Friday, MDV-SEIA’s Solar Energy Focus gathered solar advocates, industry leaders, business owners, government officials and politicians together for open dialogue about the current successes of the solar industry and potential obstacles it may face in the coming years.

On the night of the 17^th, over a hundred people packed the room for Former Colorado Governor Bill Ritter’s address. Ritter commended states and local governments for taking action when the federal government seems paralyzed, saying, “We do not have the luxury of waiting a year to have a serious national energy policy.” Ritter offered insight and advice based on his own time as governor working to advance Colorado’s new clean energy economy.

Nobel prize winner Dr. John Byrne, who serves as the Director of the Center for Energy and Environmental Policy and Distinguished Professor at University of Delaware, spoke to attendees during the morning plenary session on the 18^th. He discussed a variety of topics, including the significant achievements of the Delaware Sustainable Energy Utility (SEU).  The SEU is a public-private partnership that delivers renewable energy and conservation service.

Byrne noted some of the challenges to America’s solar industry, including the rapidly expanding manufacturing industry in Shenzhen, China. He demonstrated his point by showing a photograph of Shenzhen in 1980, as a fishing village, and a photo of Shenzhen today, a colossal city the size of two Manhattans with huge production capabilities and allure to industry investors. He closed by stressing that someone will get the jobs from renewable sector—the answer as to whom will get those jobs depends on America’s willingness to act quickly and compete.

The numerous breakout sessions offered during the afternoon kept conference attendees busy and engaged. The state policy panel addressed the opportunities and challenges facing DC, Maryland, and Virginia respectively in growing the renewable sector. In particular, Virginia emerged in discussion as the state with the most obstacles to clean energy growth. To its north, south, and west, progress has been strong, yet it remains in an almost “third world energy state.”

The EPA vs. Congress panel posed important questions to the audience about what the government’s role is in the energy sector. Panelists noted that the EPA has long been constrained from essentially doing its job, and it has a lot of catching up to do now. Panelists discussed regulations on coal and natural gas and what the implications of these will be on the market share for renewables. One panelist advised solar advocates to make their voices heard to their elected officials in support of the EPA’s proposed rules.  The EPA’s rules are an indirect way to fix the pricing failures and externalities of fossil fuels, according to Roger Ballentine, President of Green Strategies.

All of the breakout sessions gave a chance for solar industry members to raise important questions and engage in discussion about solutions for current and future problems.

Founder and President of the Stella Group, Ltd., Scott Sklar, wrapped up the evening with a speech that highlighted some of the things that make the solar industry essential and well suited for the 21^st century world. Sklar intrigued the crowd with his comment that there are 24 peer-reviewed studies that most or all of our energy needs can be met by renewable energy in the not-so-far future, and zero peer reviewed studies that claim that we can sustain our energy needs on nuclear power and fossil fuels far into the future.

Sklar urged attendees to get “out of their bubble” by attending meetings of  local service organizations and explaining the facts, statistics, and technology of solar energy to the community members. He noted that it’s very difficult for people to support something that they don’t understand—it’s the responsibility of the people like those at Solar Energy Focus to help the community understand why solar matters. Sklar touched the crowd by tugging at the very heart of what it means to be American, “We embody choice. The American market idea. You typify American exceptionalism. We offer choice and control. There is no other set of technologies that is so versatile or that fits the American ideal.” Solar energy provides alternatives—it gives consumers the freedom to choose where their energy comes from and the opportunity to produce their own energy and become self-sufficient.  Nothing could be more American.

Solar Energy Focus was held November 17-18, 2011 at the Marriott at Metro Center, Washington, D.C. Stay tuned to http://www.mdv-seia.org for upcoming information about Solar Energy Focus 2012 and other MDV-SEIA events. 

MDV-SEIA’s Solar Energy Focus Conference Just Days Away

Solar Energy Focus 2011 to Gather Key Solar Thought Leaders in Washington DC

The Mid-Atlantic’s premier solar conference, Solar Energy Focus, is this Thursday and Friday, November 17 & 18, at the Marriott Hotel at Metro Center in Washington, DC. The conference will bring the Mid-Atlantic’s leading solar energy industry thought leaders, investors, suppliers, legal experts, business leaders and policy makers together for engaging dialogue about the current state of the solar industry and its future.

“In the past five years our annual Solar Focus conference has grown to become the nexus between the Mid-Atlantic’s solar industry, solar developers and financers, policymakers at the local, state and national level, solar manufacturers, professional service firms and other entities in our regional solar community,” said MDV-SEIA president Tony Clifford. “Given the growth and changes in this industry and the challenges it is facing as a result, we expect this year’s event to be the most dynamic yet.” 

Critical commercial issues, state and federal policy and trends, renewable energy finance, distributed generation, technology and federal procurement opportunities will be among the topics open for discussion and debate during the conference. Speakers include national solar champion and former Colorado Governor, the Honorable Bill Ritter, Jr., Nobel Prize winner on climate change Dr. John Byrne, distributed generation expert John Farrell, and President and Founder of the Stella Group, Ltd. Scott Sklar.

View the full agenda here, and register for the Conference before it fills up. 

Engage with Solar Energy Focus and MDV-SEIA on Facebook, Twitter and LinkedIn. 

Solar Community Challenges Dominion Power’s Proposed Standby Charges at Hearing

Industry champions provide strong testimony to urge Virginia to take steps against negative impact on state’s solar economy

Thursday morning, solar advocates called into question the methodology of Dominion Virginia Power’s proposed standby charges for 10 to 20 kilowatt residential solar systems at a hearing granted by the State Corporation Commission. The Maryland-DC-Virginia Solar Energy Industries Association requested the hearing, following Dominion’s application to the Commission for approval of the standby charges, which could cost solar home owners up to $60 extra a month.

Seven individuals, including representatives from Sierra Club and Chesapeake Climate Action Network, solar business owners and residential solar system owners took the stand to assert the benefits of solar power and the positive impact of distributed generation on Virginia’s electricity grid. Most of the solar advocates stressed the ability of solar systems to generate electricity during peak hours, which reduces the pressure on Dominion’s lines during high demand—a benefit they contend is not reflected in the proposed standby charges. Residential solar system and business owners urged the Commission to re-examine Dominion’s standby charge methodology before implementing these charges too hastily without the proper data and analysis taken into account.

Solar business owners noted the negative impact the proposed standby charges will have not only on their businesses, but also on the overall future of the fast-growing solar energy industry in Virginia. Business owners who had previously planned to expand their number of employees explained that they would be unable to do so if these charges were implemented, or would possibly have to lay off employees. In addition to addressing the negative economic impact on the solar market in the Commonwealth, several witnesses voiced concern about the amount of effort and expense Dominion Virginia Power devotes toward promoting a “green” image, while failing to act upon this image by neglecting to incorporate the benefits of 10-20 kW systems in their calculations for the proposed standby charges.

Richard Good, the owner of Solar Services, a 25-employee solar energy business in Virginia Beach, discussed the amount of time it takes to pay off the significant costs of a residential solar system in his statement to the Commission. Under the current rate structure, he tells the average customer that it will take approximately 20 years for the system to generate a full return on the investment. With the proposed standby charges calculated into this equation, he projected that it would take an additional 6-8 years to pay off the system. He fears the harmful precedent that this charge would provide for future unfair charges on renewable energies brought forth by utilities.

Dominion customers and owners of a 6.2 kW residential photovoltaic solar system John and Ann Roper attended the hearing, because they are concerned that the standby charges destroy the economic viability of customers’ solar investments. John Roper commented, ”Today, with the cost of PV coming down, we might have considered investing in a 10 KW solar system. With the onerous proposed standby charges, we probably wouldn’t consider it.”

Expert witnesses for Dominion Virginia Power, the State Corporation Commission, and the MDV-SEIA offered testimony and rebuttal during the day long hearing, in addition to answering thorough questioning from the Virginia State Corporation Commission.

The Commission will announce their decision regarding the standby charge on December 1.

About MDV-SEIA

MDV-SEIA represents the interests of photovoltaic and solar thermal equipment manufacturers, installers, distributors and component suppliers, including more than 45 companies in Virginia. Its members design, sell, integrate, install, maintain and finance solar energy equipment for residential, commercial and institutional customers throughout the region. Among our ranks are the accountants, attorneys, builders, architects, electricians, plumbers, and consultants that support the solar industries. MDV-SEIA represents hundreds of Virginia jobs in the fastest growing industry in the United States. 

Collaborations between Utilities and the Solar Community

Conference Panel to focus on Distributed Generation

What does it take to get more utilities to develop their own solar energy projects? A recent panel at SPI discussed the question, as reported recently in Renewable Energy World by Lindsay Morris. The discussion, as could be expected, centered around the costs of solar. Representatives from PSEG, Duke Energy, and others stated that the combination of declining solar costs, the need for reliability improvements to the grid, and the retirement of coal-fired power plants will help solar move into a more dominant place in the energy supply world.

However, when we ask how utilities can scale-up solar, are we asking the right question? A panel at MDV-SEIA’s upcoming conference, Solar Energy Focus 2011, will be tackling the utility issue from a different angle. Distributed solar is a significant growth opportunity for utilities and electricity producers. This panel will discuss how and why these traditional energy suppliers and utilities are collaborating with the solar community to move towards a distributed generation (DG) energy future. Panelists include:

• Tony DePrima, Executive Director of Delaware’s Sustainable Energy Utility
• Bryan Miller, Vice President of Energy Policy at Constellation Energy
• Yuri Horwitz, CEO of Sol Systems
• Harry Warren, President of Washington Gas Energy Services

Other related panels and discussions at the conference include a look at SREC programs and markets in the region, a talk from Dr. John Byrne about Delaware’s Sustainable Energy Utility financial model, and distributed solar thermal development. Please join in the discussion on November 17^th and 18^th in Washington, DC. We hope to see you there!

Solar Advocates Challenge Dominion Stand-by Rate

Hearing requested by the MDV-SEIA to be held November 3^rd

The Virginia State Corporation Commission will hold a hearing, as requested by us here at the MDV-SEIA, on the stand-by rates proposed by Dominion Power in July. Legislation passed by the General Assembly allows utilities to collect Stand By charges from owners of “electrical generating facility[ies] with a capacity that exceeds 10 kilowatts.”. However, Dominion can only set the charges to “recover … infrastructure costs that are properly associated with serving” these systems.

Dominion’s stand-by rates will severely reduce or eliminate the economic value of eligible PV systems (10-20kW) that can reduce infrastructure costs that are ultimately passed on to all customers and provide clean energy for decades to come.

Our case focuses on serious irregularities between the new law and Dominion’s rate proposal. First, Dominion has not provided sufficient data or a proven methodology to show that their proposed rates accurately represent their infrastructure costs caused by 10kw to 20kw solar energy systems.

Second, and more broadly, solar photovoltaic (PV) systems actually reduce a utility’s infrastructure costs, meaning these rates are unlawful. Dominion fails to consider the benefits of distributed generation (DG), which offset the distribution infrastructure costs. Additionally, PV systems generate electricity at the location where used and during the “peak” cost periods.  These systems displace the need for generation that is both high cost and spews carcinogenic and other polluting toxins into the air.   This, as we know and many researchers have shown, leads to fewer new power plants fewer highly controversial transmission and distribution lines; and lowers overall demand for electricity. Thus, these systems actually reduce the need for infrastructure and lower costs.

It is imperative to note that Dominion’s stand-by charge structure results in higher charges for a net-metered customer than a regular customer with a similar load profile. This appears to violate the Virginia statute requiring utilities to provide uniform rates to similarly situated customers.

Dominion’s proposal is not only shortsighted, but also premature. Additional information and analysis on net metering in Virginia will be available in the near future.

For all the above-mentioned reasons, MDV-SEIA, representing the regional solar industry, will ask the Virginia State Corporation Commission not to approve Dominion’s rate proposal. The proposed rates would discourage the development of and investment in PV systems. Instead, we suggest that Dominion perform a ‘cost-of-service’ study before proposing any stand-by rates, as required by law.

The hearing will be held on November 3, and I invite you to join MDV-SEIA in opposition of Dominion’s standby rate proposal.  To learn more or to support this effort please email us at Director@mdv-seia.org and write in the subject line “Dominion Stand By Rate case.”  

Francis Hodsoll
Executive Director
MD DC VA Solar Energy Industry Association

Delaware Program set to Strengthen Solar Markets through SREC Procurement

Join us for and information and discussion session with the experts at Solar Energy Focus 2011, November 17-18 in DC.

Solar in Sussex County, Delaware. Source: DNREC

States interested in promoting solar energy through policy are increasingly turning to the solar-carve-out option. Today, over half of all states with a Renewable Portfolio Standard (RPS) have a carve-out, either focused on distributed generation or specifically on solar energy. While an RPS requires the state to obtain a certain amount or percentage of electricity from renewables, a carve-out states that a specified amount or percentage of that renewable electricity must be generated by solar. Thus, these policies are an effective way to promote solar, which has unique attributes among renewable energy technologies, such as peak-shaving and significant job-creation.

Delaware’s RPS is relatively aggressive, requiring 25% renewables by compliance year 2025, of which 3.5% is to be generated by solar.

A pilot SREC procurement program has been proposed in Delaware by the Renewable Energy Task Force, a body created by legislation in 2010. The procurement program creates market mechanisms for four different capacity-based categories of solar generators. The four-tier system will ensure that the carve-out is met by both large-, medium-, and small-scale installations, which maximizes the economic and reliability benefits of distributed solar generation. The pricing of SRECs will be set for smaller systems, making financing for small residential and commercial projects easily obtainable and less risky. For larger systems, the SREC pricing is more market-based, keeping costs to a minimum.

The program will be administered by Delaware’s Sustainable Energy Utility (SEU), an independent not-for-profit already successfully implementing a number of energy efficiency programs in the state.

If you are interested in learning more about Delaware’s SREC procurement program, or what goes into developing and implementing a solar carve-out, please join us, MDV-SEIA, at the Solar Energy Focus 2011 Conference this November 17-18 in Washington, DC. The conference will feature a breakout session focused specifically on this topic, featuring Dale Davis, President of CMI Solar Electric and President of the Delaware Solar Energy Coalition and Glenn Moore, Regional VP of Delmarva Power, both experts involved in developing Delaware’s pilot SREC program. Register by Oct. 14th and receive a discount. We hope to see you there!