Maine has been the site of one of the fiercest battles over net metering seen to date in the United States. Under the leadership of the state’s idiosyncratic governor, Paul LePage (R), state regulators have implemented a policy which will reduce the compensation for electricity generated by behind-the-meter PV systems 10% annually.
Perhaps the most damning aspect of this policy – which is set to start two weeks from now – is that it will not only reduce compensation for electricity exported to the grid, but also the value of that produced and consumed by homeowners, an abuse of utility power described as “gross metering”.
Yesterday the Maine Senate fought back by passing a bill 28-5 that would remove “gross metering” and allow full compensation for electricity generated and consumed within a monthly period, while still retaining the 10% decline in compensation for electricity exported to the grid (calculated monthly).
The bill would also allow up to 50 customers to participate in shared-interest projects including community solar, up from the current limit of 10.
The bill must still pass the Maine House, which Natural Resources Council of Maine Clean Energy Director Dylan Voorhees describes as “the more difficult chamber”. From there it will inevitably be vetoed by Governor LePage, who has been known to rant about solar in his frequent radio tirades, usually repeating the “cost-shift” myth.
This means that for these changes to become law, the bill will need to override a veto. Maine’s Legislature often attempts to override vetoes by LePage, however again the House will be the more difficult chamber as it contains more of the governor’s allies.
This exact situation played out last August, when the Maine House failed to override a LePage veto of a compromise bill on net metering by a mere two votes.
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It seems that Maine is headed for a surplus of off-peak power, and a scarcity of peak power.
Why does Maine have 33 state senators? Is it ever sunny there?
A few notes here. First, Maine is part of the New England grid, which like almost all major grids in the United States has its highest annual peak demand during heat waves in the summer. Thus solar can help to mitigate the need for additional generation. That can be a bigger factor than meeting daily peak electricity demand, especially given the flexibility of the New England fleet.
Second, Maine has better solar irradiation than Germany, which until a few years ago had the most solar deployed of any nation on Earth. Within the United States, solar is often deployed first not only in places that are sunny, but in places that have high electricity prices. Like the rest of New England, Maine has residential electricity rates that are above the national average.
Thanks Christian you did a nice job summing up the key selling points of solar in Maine! 😉
Impressively 1kw of installed solar in Portland, ME generates only about 10% fewer kWh annually than 1kw of installed solar in Austin, TX. We have long sunny summer days and lots of bright sunny / cold conditions which is great for PV Generation.
As for the endless saga that is our legislature… Well thanks for featuring the play-by-play. Maine’s solar industry has persevered through a relentlessly anti-solar Governor’s office (and, by proxy, the PUC, who are now all appointees by the anti-renewable Gov administration) as well as all the other ‘solar coaster’ issues the industry faces writ large.
Despite these headwinds, ReVision Energy (and other installers in the state) continue to grow, in the range of 20-30% annually… we were actually a bit surprised to see the total job #s come out last year seeing a decline in solar installer jobs, since we actually added about 30% to our headcount.
In addition to a good solar resource, and high conventional electricity prices, we also have a lot of independent-minded, environmentally-conscious consumers in the region. Our mission to transition away from fossil fuels resonate with them and they vote with their dollars regardless of what the government says… The price of PV panels doesn’t hurt, since we’re still able to offer cashflow positive solar loans and ~10-yr payback for most cash projects.
Maine’s solar industry is tougher, leaner, and more resilient for the adversity we’ve faced, and looks forward to the time when idiotic, regressive policy is a thing of the past and solar rapidly scales in our state the way we know it can and will.
– Fred Greenhalgh / ReVision Energy