SOLAR POWER
A growing number of states are gearing up to leverage distributed energy resources (DER) to support grid operations amid clean energy and climate goals that require investments in and incentives for renewables and customer-sited generation.
The pressing trend towards revisiting retail rate net metering for rooftop solar continues, in a bid to ensure proper compensation for solar customers and avoid cost shifting to non-solar customers. Net energy metering, which credits customer generators for grid-exported power, has been a key component of the policy framework to spur investment in customer-sited renewable energy facilities, including solar and energy storage systems.
Recently, state regulators have stepped up efforts to value distributed energy resources (DERs) more accurately while looking for ways to better reflect the costs they impose on the grid. Among recent actions, New York adopted a mechanism to move the market towards more cost-reflective rates, while California decided to include avoided transmission costs in the valuation, and Connecticut unveiled a study on quantifying the benefits of these resources.
As states continue to reexamine net metering programs in the evolving distributed solar landscape, the industry faces a new challenge: a petition asking federal regulators to exercise jurisdiction over these state-administered programs that compensate behind-the-meter generation for grid-exported energy.
A handful of U.S. states have taken steps to provide relief for the solar industry that has been facing uncertainties in light of the COVID-19 pandemic. Measures to address the ensuing challenges range from expanding incentive programs, extending project deadlines, and expediting new projects.
Utility-scale solar is growing at a remarkable pace driven by declining costs, state clean energy commitments, retirement of fossil-fueled generation, and utility decarbonization goals. The industry is poised to add about 13.5 gigawatts of new projects this year, outpacing the previous annual record of 8 GW set in 2016, according to the U.S. Energy Information Administration.
The prolific growth in distributed energy resources is forcing states to re-examine their policies. State efforts range from modernizing interconnection standards and enhancing distribution system planning, to rewriting solar net metering rules. Keep on top of the latest changes in solar energy policy by accessing EnerKnol’s Quarterly Tracking Table. The Table provides a comprehensive, up-to-date…...
The debate over net metering for rooftop solar power continues across U.S. states as utilities seek rate structures that reduce the compensation for power exported to the grid or add charges to avoid shifting grid maintenance costs to non-solar customers. More than 20 states are reexamining the policy to more precisely assess the value of distributed generation. Some have changed their rules, while others have initiated studies, and a few have opted to continue with net metering. Critical findings across state commissions will influence the outcomes in other states.
Utilities are optimizing green power programs to meet carbon reduction targets and satisfy their customers simultaneously. Green pricing options allow customers to meet a portion of their electricity needs from renewable energy resources. While offering innovative products to increase customer access to green power, these programs provide larger consumers the option to meet their varying sustainability and renewable energy goals.
Community choice aggregation has existed for over two decades, but it has gained popularity in recent years, driven by competitive rates, consumer interest in controlling their electricity source, and the desire for renewable energy options. The procurement model allows local governments to buy power on behalf of their communities, tailoring their purchases to meet customer preferences.
Since distributed-level solar generation just started to proliferate across the U.S. a decade ago, as many as 21 states are now reexamining or revamping policies for compensating the power source, upsetting the status quo and deepening a divide among states for and against the incentives.
State renewable portfolio standards are a key driver behind the torrid expansion of wind and solar generation across the U.S., responsible for about half of the nation's deployment of the clean energy sources over the last couple of decades.