Connecticut Catastrophe, Part 2: Solar Consumers Are NOT Utilities

By Frank Andorka, Senior Correspondent

What Happened: Yesterday, I promised you more information on why pending legislation in Connecticut that would eliminate net metering would be a disaster for the solar industry.

  • Yesterday, we dealt with the idea of “simultaneous consumption” argument (a compensation scheme so complicated you need an accounting degree to figure it out). Today, we’ll deal with the idea that solar consumerss are utilities.
  • The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire up your phones and get dialing is what I am saying).
  • Connecticut catastrophe

    The level of awful in the Connecticut solar bill that is careening drunkenly toward passage as the session comes to an end is breathtaking in scope and stupidity.

    SolarWakeup’s View:  Yeah, the genius just keeps coming from what I’ve decided to dub the “Connecticut catastrophe,” which in case you aren’t aware is Senate Bill (SB) 9, a bill hellbent on destroying the solar industry in the state once and for all.

    For today’s lesson in bad solar ideas, let’s discuss the…SPECIAL idea that because solar consumers are generating electricity, they should be considered regulated utilities.

    Yep. That’s a thing supposedly “serious legislators” are discussing.

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    At issue here is something called the “average cost” calculation, which is how utilities set their rates. SB 9 wants to make the Connecticut catastrophe worse by lumping all solar generators – including residential installations – in with other massive electricity producers like utilities. The problem, of course, is that this puts an unreasonable burden on solar consumers to keep up with the reporting procedures and other regulatory hoops through which utilities must jump (I should say must RIGHTLY jump, given that their profit is guaranteed by the state).

    Subjecting solar consumers to the same regulations as the utilities destroys the entire underlying rationale for homeowners to install solar arrays. As The Alliance for Solar Choice writes,

    Pursuing an “average cost” approach instead of the standard value-based approach will undervalue solar energy, reduce consumer choice and jeopardize the viability of residential solar businesses. This may cause some residential solar businesses to shut down, particularly smaller, local solar companies with costs that are above-average.

    This backwards approach could particularly impact low-income and middle class residents who rely upon no-money-down financing options to go solar. Most solar customers in Connecticut are below the median income level thanks to these financing options, which the new tariff could threaten.

    Had enough yet? Wait until you see what this Connecticut catastrophe does to the community solar side of the business.

    I can’t urge you strongly enough to get on the phones and tell Connecticut legislators not to destroy the state’s solar industry by passing this bill. No, seriously. Do it now. You only have six days left to stop this Connecticut catastrophe from moving forward.

    More:

    How To Screw Up Solar With One Horrid Bill (Connecticut Edition)

    Here’s this asinine bill:

    SB 9

    How To Screw Up Solar With One Horrid Bill (Connecticut Edition)

    By Frank Andorka, Senior Correspondent

    What Happened: The swath of destruction the Connecticut legislature is about to cut through the solar industry with their latest bill to replace net metering is breathtaking and stupefying to behold.

  • The absurdity of the legislation is so mindblowing I’m going to have to take more than one piece to do it justice, but it includes the illusory cost-shift, a buy-all, sell-all scheme, an arbitrary commercial solar cap….oh, yeah. This legislation is a beaut.
  • The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire up your phones and get dialing is what I am saying).
  • Connecticut

    The level of awful in the Connecticut solar bill that is careening drunkenly toward passage as the session comes to an end is breathtaking in scope and stupidity.

    SolarWakeup’s View:  Connecticut Senate Bill (SB 9) is the perfect distillation of everything that solar opponents use when they’re trying to destroy solar industries in various states.

    For today’s lesson in bad solar ideas, let’s just start with the legislature’s decision to eliminate net metering.

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    As introduced, SB 9 moved solar power from net metering to a “sell all, buy all” system, meaning that homeowners with solar on their rooftops wouldn’t be allowed to use the electricity they produce themselves. Instead, they would have to sell all their electricity to the utility at a lower, wholesale rate. Then the homeowners would be required to buy all their electricity back from the utility at the higher retail rate. Solar advocates in the state say this is akin to having the utilities seize the solar panels from customers’ roofs and charging them for the privilege.

    This is, seriously, one of my favorite anti-solar policies because, DID YOU READ IT? They want solar consumers to sell their power to the utility so it can be sold back to them at a higher rate. Somewhere, Bernie Madoff is smacking his forehead and saying, “Why didn’t I think of that?”

    Pushback against this idiotic scheme has led solar opponents to say, “OK, fine. We won’t violate your property rights that way. Here’s another scheme, though, that we think you’ll LOVE!”

    The replacement is called “simultaneous consumption,” which means that every kilowatt-hour solar consumers produce will be credited immediately, and then the public service commission will choose what the utilities will pay them for their excess production. ‘Cause, you know, that’s fair.

    As The Alliance for Solar Choice (TASC) argues,

    Its uncertainty would jeopardize the financibility of systems, which will disproportionately impact low-income customers who depend upon it. It also disadvantages working people who cannot change when they use electricity.

    And that’s just the beginning of what’s wrong with this bill. Just you wait – if you think it can’t get any worse, wait until you see my next article.

    I can’t urge you strongly enough to get on the phones and tell Connecticut legislators not to destroy the state’s solar industry by passing this bill. No, seriously. Do it now. You only have seven days left to stop this monstrosity.

    More:

    Here’s this asinine bill:

    SB 9