Supporters of solar power are gearing up for another fight with one of Virginia’s big electric utilities – hoping to block a proposed program that could make solar more expensive.
The solar industry is growing rapidly in this country, with enough power to supply 4.6 million homes. Virginia’s potential is better than average, but this state ranks 31st in the nation, with just 15 megawatts of installed capacity. Even so, our main utilities are uneasy. Dominion and Appalachian Power argue that people generating their own electricity will still need the grid on cloudy days and at night, but they won’t be paying as much to support administration and maintenance of the system’s hardware.
“The lines that run there, the metering systems, are still there and still used.”
So APCo spokesman John Shepelwich says maintenance and administrative costs would be shifted to people who don’t have solar.
“If they’re not participating, they shouldn’t have to subsidize that.”
Proponents of solar say it will relieve pressure on companies like APCo and Dominion. As customers begin to generate their own energy, the utilities won’t have to buy as much fuel or build as many new plants.
“Now that’s possible, but the fact is it still has to be there and still has to be maintained by our company, and still has to be repaired if an outage occurs.”
Which is why APCo and Dominion impose substantial fees on homes with large solar arrays.
Now, APCo has proposed a program for large non-profits, like universities. If they want solar, APCo says it will act as a middle-man, buying the power from a third-party producer, supplying electricity from the grid at a price based on the wholesale solar market, and charging customers a monthly fee of $30.
Tony Smith, CEO of a solar development company called Secure Futures, can’t see how that benefits customers.
“Not only is it going to cost the customer more, but the customer is assuming more risk and also setting aside land or roof space for solar installation.”
And at the non-profit Appalachian Voices, Hannah Wiegard is dismayed.
“It would flip the situation from allowing the customer to immediately pay less to immediately paying more, so it creates a real disincentive, and if Virginia is to catch up with other states, we need a freer, more open market.”
Again, Virginia has 15 megawatts of solar, compared with 1,000 in North Carolina and 275 in Maryland. With such tiny numbers in this state generating a miniscule amount of power, critics question the need for a $30 monthly fee, and a state report concluded solar users have no real impact on other rate payers.
If the APCo proposal is approved, and a university preferred to contract directly with a third party, like Tony Smith, could it do so, or would customers be obliged to do business through APCo? Smith – who faced a lawsuit by Dominion Power over plans to build solar at Washington & Lee University – isn’t sure.
The law is in dispute, and I believe that the attorney general’s office may be arguing that customers are allowed to go third party owners, however utility companies have taken the opposite point of view.”
The State Corporation Commission holds a hearing later this month to decide whether it will allow APCo to offer its Renewable Generation Purchase Program. The SCC is accepting public comments online through Tuesday, and those who want to weigh in will find a link on our website.
You can submit an official comment to state regulators here.
