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.
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