The Overlooked Dirty Energy Money Behind Solar Net Metering Battles, And Why It Matters
Blog ››› ››› DENISE ROBBINS
Across the country, state and local lawmakers are battling over a solar energy policy called net metering. But while the reasons for disagreement vary from place to place, several share a common and oft-unreported thread: Many attacks on the solar policy are supported by fossil fuel interests.
Net metering allows customers who have installed rooftop solar panels to generate their own electricity and send what they don't use into the electric grid for others to use -- like during the day, when the sun is shining but a family is at work or school. In exchange for the electricity provided to the grid, the customer gets a credit applied to their utility bill. The Interstate Renewable Energy Council has explained that solar panels "predictably produce energy during peak hours of the day, supporting the grid when most needed," and that net metering makes solar energy a "viable financial investment for many consumers." The policy has widespread support from liberals and conservatives alike, and has even spurred an offshoot of the Tea Party, called the "Green Tea Coalition," which connects environmentalists with Tea Partiers in support of net metering.
The amount of credit solar energy users receive, however, is the subject of fierce debate in states across the country. Utilities have been pushing for legislation to roll back net metering credits by adding a cap or charging a flat fee for solar users. Net metering poses a distinct challenge for utilities because it disrupts their long-standing monopoly in the electricity market.
Moreover, net-metered solar energy cuts into utilities' profits; with more distributed solar energy in the electric grid, utilities have no reason to invest in and build new power plants. As the Energy & Policy Institute's Matthew Kasper told The Washington Post, distributed solar energy prevents "the need to build new, expensive power plants or transmission lines." He added, "Utilities make their money by building big, new infrastructure projects and then sending ratepayers the bill, which is exactly why utilities want to eliminate solar."
In coverage of net metering battles, the media has largely focused on opposition from utilities. But there are larger forces at play: Outside interests are influencing the battle through front groups and legislation. Here are just a few of the groups inserting themselves into net metering battles:
Americans for Prosperity, which was created by the Koch brothers and acts as their political arm, has fought against net metering in Georgia and Florida, and pushed misleading claims that net metering policies "have resulted in rate hikes and did not result in solar becoming more economically viable." In March, PolitiFact rated this claim "Pants on Fire" and called it "completely wrong."
Consumer Energy Alliance, which has received over $400,000 from the American Petroleum Institute and been affiliated with fossil fuel giants including BP, Chevron, ExxonMobil, Peabody Energy, and others, produced a phony petition in 2014 that attacked Wisconsin's net metering policy.
The Institute for Energy Research, which has received funding from ExxonMobil, the American Petroleum Institute, and the Koch brothers' political network, released a report earlier this year claiming that net metering only benefits higher-income households.
The National Black Chamber of Commerce, which has received $1 million in funding from the ExxonMobil Foundation, recently claimed (falsely) that Louisiana's net metering policies shift costs onto low-income families.
The American Legislative Exchange Council (ALEC), a corporate front group that connects fossil fuel industry executives with legislators to push model bills serving industry interests, has released a resolution on net metering, calling it "antithetical to free markets."
Several other fossil fuel front groups have been fighting against net metering, as detailed in a report by the Energy & Policy Institute:
The involvement of these groups, who don't appear to have direct ties with local utilities, may seem strange. But not when you consider that net metering policies are causing an unprecedented increase in solar energy use and thereby helping wean Americans off fossil fuels.
From 2010 to 2014, the amount of annual solar photovoltaic (PV) installations roughly increased by a factor of seven, and the U.S. had a record quarter for solar photovoltaics installations in the second quarter of 2015, reaching a total installed capacity high enough to power over four million homes. Meanwhile, prices have dropped rapidly over the past 10 years: the cost of installing solar is now 73 percent lower than it was in 2006.
Nine of the 10 states with the most solar electricity installed per capita also have strong net metering policies. But policies to roll back net metering are already impacting solar companies. One company, Vivint, scrapped its plans to expand to Nevada after the state changed its policy to cap net metering at what solar advocates call an unreasonably low limit. Massachusetts' net metering cap poses a similar threat to the solar industry there.
Attack campaigns against net metering could halt the expansion of a clean energy industry that threatens the fossil fuel interests usually behind those attacks. Media coverage of net metering debates should make that fact loud and clear, so the public knows the real identity of who's against net metering, and why.
Photo at top from Flickr user Wayne National Forest with a Creative Commons license.