Rooftop solar has historically been supported by net metering regulations across the United States. The process involves customers exporting excess electricity generation to the grid, receiving a credit on their bill for exporting local clean energy to their neighbors.
In Utah, legislators have introduced SB189, which would raise the rate paid under net metering and build consumer protection into future rates. Utility Rocky Mountain Power currently charges about $0.10 per kWh and credits its customers half as much, about $0.05 per kWh for exported rooftop solar generation.
The new policy would require utilities to credit solar owners at least 84% of the cost-per-kilowatt.
“This bill is about providing Utahns with the energy choice they deserve at a fair price,” said Josh Craft, the government and corporate relations manager for Utah Clean Energy.
Historically, Utah has updated its net metering rates on an annual basis. This creates complexity and confusion in the market and makes it difficult for homeowners to make the decision to move forward with a rooftop solar array. Legislators say the new law will help simplify the process and make it easier and more financially attractive to go solar.
The 84% compensation rate seeks to strike a balance between utilities and rooftop solar customers in their territory. The utility incurs some costs by maintaining and repairing a local distribution grid to transmit rooftop solar, so the 16% it shaves off the retail value of exported solar helps maintain those costs.
“By updating rooftop solar policies, we can ensure that clean energy remains an accessible option for all residents,” said Craft in an interview with KSL News Radio.
California anti-corruption
The bill proposed in Utah bucks a nationwide trend of anti-rooftop solar regulatory moves by electric utilities.
Net metering has come under attack in several states, most notably in California, which represented about 50% of the nation’s rooftop solar market before enacting Net Energy Metering (NEM) 3.0. Post-NEM 3.0, California’s rooftop solar installations have dropped as much as 80%, with tens of thousands of employees being laid off and numerous companies announcing bankruptcy.
The sharply rising electricity rates in California coupled with a track record of anti-consumer regulations has led legislators in California to introduce laws aimed at weeding out potential corruption within the California Public Utilities Commission (CPUC). Assembly Bill 2054 imposes a 10-year cooling-off period under which commissioners cannot take a high-paying position with a utility company after serving.
“It is crucial to safeguard against potential conflicts of interest and undue industry influence on regulatory bodies,” said Assemblymember Bauer Kahan (D, Orinda).
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This is great news for Utah in bucking the national trend harming net metering! We should all want to support solar and cleaner air. I just wish I could help when it seems our politicians don’t always seem to have our best interests at heart.
Laws forcing companies to pay you for feeding back power doesn’t make sense. I can’t just make meat patties and sell them to McDonald’s for half cost. Private companies have a right to pay what they want as individuals have a right to choose wether or not to supply extra power. Nobody is forcing people to feed back power, but now companies are forced to pay if people do.
This will blow up in consumers faces. Next will be a law, made by the owner of power companies working with lawmakers in retaliation, to force consumers to feed power or have a new fee added to your bill. Some sort of charge for NOT being green. It’s happened to vehicle purchases as you get gas guzzler tax for a common ICE now.
Cause and effect. Push someone to pay more and they don’t want to cut into profits. And yes it’s mere pennies but they add up and companies don’t like losing profit no matter how small. So you will see fee increases on other surcharges in your bill later on if they don’t make a new charge altogether.
It like minimum wage going from 7 to 15$. Almost a decade ago I said doubling pay just doubles the costs of goods and services provided, if not then you have to cut half the staff to cover the double pay. And that’s exactly what we’re seeing now. I’m not a business major, I’ve never been to college, but it doesn’t take a scientist to do that quick math and figure out stuff.
This is a horrible idea. Some energy company accountant already had this thought because I’m just a consumer and I’ve thought of this. And if not this they will find some way to get theirs back momentarily. You’ll need a special power output meter on your home from their company that only they produce, and it ensures the power you make is a clean wave, right form, etc. and their tech will have to hook it up for another fee. They will do this all because people are greedy. Greedy consumers want a few pennies more, but greedy corporations will get it back in the end.