florida net metering grandfather clause

[32], In early 2018, a bill was proposed in the Kentucky Legislature that could dramatically alter net metering within the state. [49], In 2017, a bill was proposed in the state House (House Bill 340[50]) that would give utility companies permission to increase fixed charges for rooftop solar customers by up to 75 percent. The NEM 3.0 program in California is already being discussed in policy circles and is likely less than a couple of years away from implementation. This is representative of the TOU changes the IOUs implemented, although the exact changes can differ depending on each utility and specific rate schedule. The initiative to revitalize renewable energy efforts garnered overwhelming bipartisan support. [70] Pablo Vegas, the president and chief operating officer of AEP Ohio, insisted at the time that rates are based on actual costs of system operations, solidifying the company's claim that no deceptive action had taken place. [56] (The major utility company in Nevada is NV Energy. Grandfathering protections for solar customers has become a hot topic over the last few years as utilities around the country have continued to change their rate design structures and Net Energy Metering (NEM) frameworks. "[8], Note: Some additional minor variations not listed in this table may apply. In turn, the utility aggregators would capitalize on the return on sales. In March 2017, regulators decided to "grandfather existing solar customers into retail net metering rates for the next 20 years." According to Florida Politics, on August 30, 2016, Amendment 4 accumulated almost 75 percent of the votes cast, surpassing the 60 percent minimum required. Governor Have A Lot To Say, But Is Anyone Listening? [68], According to Utility DIVE, "The legislation proposes a competitive bidding process for independent solar developers that lawmakers say will help keep costs down by using market-driven solutions to develop renewable projects. Under the bill, power produced by net metering customers would be valued at the wholesale rate and net metering customers to pay a monthly service charge to help pay for the fixed costs of the public utility's operation. The second subgroup, made up of public utilities, wanted to have an embedded cost service approach that would determine the costs and benefits associated with that metering. Rooftop solar customers can currently get $2,000 in tax credits on their state income tax return. In early 2017, the Maine Public Utilities Commission approved new limits that will eventually phase out net metering, beginning in 2018. This is especially important for solar customers given that as part of NEM 2.0, all new solar customers are required to take service on TOU rates. Numerous other mature solar markets outside of the US, like Germany and Australia, have experienced a similar history to Hawaii. Solar, wind, and anaerobic digestion facilities are eligible for much higher caps, depending on whether they are privately or publicly owned. The main differences between the two programs are NEM 2.0 customers have to pay an interconnection fee, Non-bypassable charge (NBC) fees which are effectively volumetric charges that cannot be netted-out by solar exports, and lastly, they are required to move to TOU-based rates after installing solar. The customer must also have their solar system installed prior to the rates becoming mandatory. N/A = Not available. This arrangement could last existing net metering customers up to 12 years. [47], In January 2018, officials in Ann Arbor, Michigan amended local zoning rules to prohibit ground-mounted solar panels in front yards, citing public safety. "[39] In response, several national solar companies paid for lobbyists to travel to Maine and attempt to persuade state legislators to stop the deal. We encourage to reach out to us if you have any questions on a specific program. The Energy Policy Act of 2005 required state electricity regulators to "consider" (but not necessarily implement) rules that mandate public electric utilities make net metering available to their customers upon request. Thats not the case, the grandfathering protections only lock in how the TOU windows were defined. In February 2017, there was a compromise in the state legislature to phase out the solar tax credit by the year 2021 by limiting how much of a tax credit each person can get. In those years, over 10,000 net metering installations were performed. The reason that the Michigan Public Service Commission is ending net metering is that in 2016, the state legislature called on the commission to come up with a study on the best way to measure and compensate for electricity from residential solar customers. [8], Phil Moeller of the Edison Electric Institute said, "We want to DER [distributed energy resources] but we want to make sure the rate structure is right to minimize cost shifts. In Ohio, American Electric Power (AEP) proposed to more than double its fixed charges from $8.40 per month to $18.40 per month, affecting nearly 1.5 million customers in order to accommodate for the increase costs due to net metering.[69]. Subscribe to our monthly newsletter and receive our blogs, webinars, and other announcements. "[21], The California Public Utilities Commission (CPUC) approved new TOU rates for San Diego Gas & Electric Company and moved the start of the peak period to 4 pm (four hours later than it was prior to the change). This reduction in credit applies to people whose systems generate enough electricity to offset all of their use, and still have some electricity left over. [28], In April 2017, the state House passed their own version of the bill. Major utilities in South Carolina are expected to meet the net metering cap this year. [56] Nevada's utilities pay net metering customers an average of $623 per year in southern Nevada and $471 per year in northern Nevada. "[46], The Michigan Public Service Commission Is calculating a new rate to pay solar customers who send energy back to the grid; the commission is using measurements of inflow and outflow of electricity to calculate the rate. The export rate would amount to $0.15/kWh for installations until the distributed power exceeded 7% of the utility's customer demand. Each of the CA IOUs has different timelines of when this transition will take place. Email:contact[at]energytoolbase[dot]com To accomplish that, the bill would increase the size limit for net metered projects from 1 MW to 5 MW. In June 2018, South Carolina lawmakers declined to remove limits on solar in the state during reconciliation of the state's annual budget bill. Grandfathered rates will last five years for residential customers and 10 years for other customers. Ill overview what grandfathering protections for solar customers means, why theyve become necessary, and what we expect to see in the future. ", "North Carolina solar reform bill easily clears House, moves to Senate", "AEP Ohio wants to double fixed charges, joining net metering debate", "Did AEP double-charge consumers $120 million? On September 13, 2016, the Maine Public Utilities Commission proposed a new rule, and then held a public hearing on October 17. "[67] Kelly was the original architect of New Hampshire's net metering law, which some municipalities such as Nashua hoped would expand, under a bill that saw bipartisan support during the 2018 legislative session. All three of the IOUs made significant changes to their TOU rate designs during the last general rate case (GRC) cycle. [53], In Nebraska, "customer-owned renewable energy generation" can be included under the state's net metering system. The bill also would allow the Missouri Public Service Commission to require solar customers to maintain a "reasonable amount of liability insurance coverage or other equivalent respecting the installation and operation of the qualified electric energy generation unit. Therefore, the utility bill savings that solar can achieve goes down, which is illustrated in the chart below for PG&E's E-19, Option R. To ease this erosion effect, the CPUC has mandated grandfathering protections for existing solar customers in California. Grandfathering has become a widely used policy mechanism to mitigate the negative impact that rate design or NEM changes have on customers who have already invested in solar. Gov. [2] As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. After this date, the credit will be secure for 15 years. In Utah, before the legislation takes effect, rooftop solar customers can claim $2,000 in tax credits. For commercial customers, bill savings are further increased through the practice of peak demand shaving. [82], National Association of Regulatory Utility Commissioners, Massachusetts Department of Public Utilities, "Current Experience With Net Metering Programs (1998)", "Examining interconnection and net metering policy for distributed generation in the United States", "Public Utility Regulatory Policies Act of 1978 (PURPA)", "Database of State Incentives for Renewables & Efficiency", "Best and Worst Practices in State Net Metering Policies and Interconnection Procedures", "NARUC rate design manual reignites debate over cost shift, value of solar", "NARUC's rate design manual draws praise from utilities and solar groups", "Mississippi Regulators Strive for Compromise With New Net Metering Rule", "Arizona regulators seek solar net-metering compromise", "Arkansas regulators complete first phase of net metering proceeding", "Arkansas net metering working group fails to reach consensus", "The Solar Rights Alliance Connects Solar Owners In Support Of Solar Rights | CleanTechnica", "California utilities propose alternative to regulators' net metering policy", "California extends grandfathering under new TOU rates", "Florida votes to strike property taxes on solar panels", "GPA petition could save non-solar users $3M annually", "Honolulu storage permits surge 1,700% in one year, new report says", "PUC: Decision to change solar compensation won't be soon", "Indiana House approves bill to phase out retail net metering", "Readers' Forum, Jan. 12, 2018: Getting most from our property taxes", "HOAs rain on homeowners' solar parade, residents' property rights", "Protect the Right to Manage Energy Usage without Discrimination", "Kansas utilities' proposed new fees could wipe out savings for some solar customers", "Coal supporter says critics are spreading misinformation about the net metering legislation", "Kentucky net metering proposals would explore subsidy issue", "Kentucky lawmaker borrows analogy from Koch-funded group to gain support for anti-solar bill", "Pro-solar coalition sues, says new metering rules violate Maine law", "Maine utilities, solar advocates back new bill to replace net metering, grow solar", "National companies seek to stop solar deal struck in Maine", "Review of Maine net energy billing rule comments continues - Daily Energy Insider", "Maine lawmakers craft legislation to preserve retail net metering", "Maine delays plan to reduce payments to rooftop solar customers", "Massachusetts approves new demand charge for Eversource's net metering customers", "Changing how people get paid for solar power", "Michigan report sparks fears of slowed solar industry pv magazine USA", "City Council amends Solar Energy Agenda for public safety", "Board adopts net-metering procedures, application", "Missouri House nears vote on bill allowing utilities to raise rooftop solar fees", "Montana bill to grandfather net metering reels in utility and solar support", "NorthWestern Energy supports net metering legislation in Montana", http://www.westernnebraskaobserver.net/story/2017/10/12/news/nmpp-urges-city-to-update-net-metering-policy-for-consumer-owned-alternate-energy-sources/4355.html, "Nevada PUC chair speaks out on solar decision", "PUCN to consider revised rates for customers who participate in net energy metering", "Nevada panel OKs new rate structure for rooftop solar users", "Harry Reid blasts Nevada PUC in Reno appearance", "Worries over firearms surface in rooftop-solar debate", "Regulators take 'a first step' toward restoring rooftop-solar rates", "Nevada Legislature clears bills raising net metering rates, RPS mandate", "New Hampshire utilities, solar companies file rate design settlement proposals", "New Hampshire Senate moves to allow larger net-metered projects", "NH net metering bill that boosts facility size leaves House committee", "Giuda: Net metering, biomass bills a threat to transmission companies", "Democratic Candidates For N.H. [22], Net metering was established in Guam in 2004, with 1,700 customers as of September 2018. In a state that is presently faced with various renewable energy issues, the idea of terminating personal property taxes on solar panels was widely supported. The policy also moved time-of-use (TOU) rates for residential customers. During that time, Rocky Mountain Power must study a "new method of compensation after a value of solar study concludes."

In 2016 the National Association of Regulatory Utility Commissioners (NARUC) published the Manual on Distributed Energy Resources Compensation as a way to help states decide on rate structures dealing with homes and businesses that generate their own power and send excess power back to the electric grid. [28], As of 2018, a new net metering law is "limiting net metering benefits, but anyone with solar panels installed before January 1, 2018, was able to secure the credit for 30 years. Net metering will be reduced over a five-year period from 2019 to compensate customer-generators for avoided cost instead. Separate from NEM grandfathering is the issue of TOU-based rate grandfathering in California. Additionally, the rates were updated to reflect "conditions on California's grid. [63], Both the utility companies and solar companies in New Hampshire filed proposals regarding a settlement over how customers will be compensated in the future over distributed solar systems. Fax:(866) 303-7786, 2022 Energy Toolbase Software Inc All Rights Reserved, By Erin Christensen on [8] A draft of the manual was released in July, which generated more than 70 public comments from stakeholder groups. In December 2015, a policy that would protect retail net metering for rooftop solar consumers was proposed by the California Public Utilities Commission (CPUC). They range from H.R. One of the goals laid out in the plan would expand net metering and community solar programs. The Arkansas Public Service Commission convened a working group to look at the costs and benefits of net metering; the working group was split along ideological lines and each of two subgroups submitted its own set of recommendations instead of having a unified position. "[17], In Arkansas, early in 2017 state regulators voted to grandfather existing solar customers into the current retail net metering rate until 2037. Another decision made by the commission would allow the original net metering rates to stay with the home if it is sold. [42], Massachusetts law allows net metering for any kind of generation technology (even non-renewable), up to 60 kW in capacity. [25] Beginning October 2018, The Hawaii Public Utilities Commission Approved a program Called NEM Plus which allows existing NEM customers to install additional Solar PV provided that the additional capacity does NOT export more power back to grid than was approved on the original NEM contract. Jul 13, 2022, By Erin Christensen on DPU also got rid of optional time-of-use rates for residential customers. "[30], Kansas Corporation Commission approved demand charges for solar net metering customers of Kansas City Power & Light and Westar Energy fall of 2018. [9], The Edison Electric Institute and the Solar Energy Industries Association both supported the manual. It projects that when the 2017 numbers are in, that number will grow to 1.2 GW. In February 2017, a group called the Natural Resources Council of Maine "vowed to continue fighting new net metering restrictions. "[34], By March 2018, Kentucky legislators "continue to wrestle over a plan to sharply reduce the amount utilities pay customers who sell excess solar power to their local utilities. [32], The demand fee proposals would charge customers nine dollars per kilowatt during four summer months. [38], In March 2017, state legislators in both the Maine state House and Senate began writing legislation that would preserve retail net metering. [53], There are at least two bills in the state legislature that would change that rate. It could be a simple change to the fixed charge or minimum bill structure, a redesign of how the Time-of-use rates are structured, or a complete restructuring of the NEM or distributed generation compensation rules. Recently, it has become a popular trend for utilities in several states to dramatically increase their consumers' fixed charges in order to account for the cost-shift created by the growing number of net metering customers who do not cover their share of grid upkeep costs, which, subsequently, places the burden onto non-solar panel customers. Solar customers that interconnected their photovoltaic (PV) systems prior to the dates listed below were grandfathered under the original net-metering tariff, NEM 1.0, for a period of 20 years from the date of interconnection. Under the current law, generators of up to 1 megawatt are eligible for net metering. Developers and renewable advocates criticized state legislators for cutting the proposal from the budget bill. The issue has two political sides: utility companies that to pay solar customers the "wholesale rate" for their excess electricity, and solar panel installers and solar customers who want utility companies to pay the "retail rate" (higher than the wholesale rate). DER is being integrated into the national grid at a rapid pace, and the system of electricity generation, delivery, and utilization are constantly changing with new technology. Many customers and solar salespeople assume they lock in on the legacy rate which gets frozen in time. The most notable change in the dramatic shifting of the "on-peak" period to much later in the evening (4p 9p). The findings concluded that the customers were indeed overpaying. The Sierra Club's "Beyond Coal" campaign ran a radio ad campaign to oppose the bill. The individuals said they would return to the next commission hearing and would be armed. Customers are still subjected to other changes that may occur in the rate schedule, like a change in the fixed fee or minimum bill charges, or a change to the $/kWh volumetric TOU rate.

In Indianapolis, for example, Indianapolis Power & Light has roughly 100 solar customers. For example, the cap for private generation on Nantucket is only 3.5 MW, but for western Massachusetts it is 59.78 MW. Second, it would create a solar leasing program. Companies that install solar panels expect that the new policy will hurt their business. This helps to preserve the savings that their solar system will achieve. The new TOU rate designs are not friendly for solar because most solar production occurs in the middle of the day when the sun is at its highest. This is due to the growth in residential installations. [36], A coalition of pro-solar groups filed a lawsuit in September 2018 against the Maine Public Utilities Commission. Since the elimination of net metering in 2015, Hawaii regulators have capped the number of solar customers who can send their excess energy back into the grid. The credits given to customers are equivalent to the retail rate of electricity. "[35], In Kentucky, homeowners who have rooftop solar sell their surplus electricity back to utility companies at the retail rate (the rate the utility charges the customer, not the rate the utility purchases electricity). "[45], In June 2018, the Michigan Public Service Commission decided to end net metering for new solar installations. Entergy was a part of the second subgroup and said "the current net-metering policy that credits excess generation at the full retail rate must be changed for new net-metering customers. Senate Bill 78, sponsored by Sen. Keith Regier (R-Kalispell) would require the Montana Public Service Commission to create a separate rate class for net metering customers by January 1, 2018. In June 2017, the North Carolina House of Representatives took action on a bill, HB589. "[8] The president of NARUC, when he commissioned the manual, said his instructions to the committee writing the manual were to write a "practical, expert and most importantly ideologically neutral guide that offers advice" to states. Book a private screen share with one of our account managers. Eversource had argued it faced "displaced distribution revenues" of more than $8 million per year that should be collected from net-metered customers. "[35] The bill was approved by the House Natural Resources and Energy Committee but has not yet been debated on or voted on in the Kentucky House of Representatives. Existing customers before the program rules were changed got grandfathered, the specifics of the protections and duration varied. Bill HB 34 would have raised the net metering cap from 50kW to 250kW for government buildings. The bill passed the legislature but was vetoed by Governor Paul LePage. [38], In 2016, solar companies and major utility companies came to a legislative agreement over net metering issues. "[49] The board took up the issue after city residents asked about regulations regarding hooking up their own solar panels. It also would encompass some small-scale hydropower projects that already exist in the state. As utilities and public utility commissions around the country continue to change their rate designs and NEM frameworks, they will likely continue to use grandfathering as a mechanism to protect existing customers from the effect of those changes. In this blog, Im going to discuss all aspects of grandfathering for solar customers, which can be a misunderstood topic. Among renewable and clean energy advocates, demand charges are "very controversial. Those customers are in the CGS program. [57][59] On February 8, 2016, during a commission hearing, three individuals with guns attempted to enter the hearing. "[29], As of January 2018, dozens of homeowner associations across central Indiana put up barriers to residential solar installations, according to the Indianapolis Star. A fixed export compensation rate for exported energy over a 10-year period would also be imposed. Customers who use a small amount of electricity because they produce some of their own via solar panels do not pay enough to cover their portion of transmission and distribution systems, according to the utility companies. The Office of the Ohio Consumer's Council, under the auditor's advice, requested AEP to disclose additional records, which was, in turn, denied by a PUCO administrative law judge, who agreed with AEP's stance that their confidentiality be protected until the audit process was resolved. The types of changes and policy actions vary dramatically. The solar industry is supporting that bill. The DPU agreed, saying "the companies have demonstrated a cost shift from net metering to non-net metering customers by identifying costs directly imposed by net metering facilities on the distribution system. [73], In South Carolina, residential solar can make up two percent of the energy each utility sells, according to a law passed in 2014. Our data team at Energy Toolbase will continue tracking and updating both the grandfathered and non-grandfathered versions of rates in our database when applicable. Senate Bill 7, sponsored by Sen. Pat Connell (R-Hamilton) would ban net metering customers from being subsidized other customers of the utility company. As participation in the program grew rapidly, penetration levels of solar on Hawaiis grid kept increasing, which led to a historic decision in October of 2015 when Hawaii ended their NEM program. Utility companies would then be allowed to compete and bid against third-party energy developers. Grandfathering for solar customers comes into play when utilities change the rules, normally either its utility rate designs or NEM frameworks.

Over a dozen entities signed onto the agreement, including Rocky Mountain Power, Vivint Solar, Utah Clean Energy, the Utah Solar Energy Association, and the Utah Division of Public Utilities. All solar salespeople in California are likely very familiar with the term grandfathering. [21], In October 2017, CPUC extended the grandfathering period for many distributed PV systems to the old rates and eliminated completion deadlines for "qualifying PV systems." [28], In February 2017, the state Senate approved by a vote of 39-9 Senate Bill 309 which would roll back net metering in Indiana. Tyler White, the president of the Kentucky Coal Association, who supports the bill, has said that net metering is paramount to a renewable energy subsidy. [37], In Maine, the two major issues regarding retail rates and net metering programs were how to deal with CMP reaching 1 percent of peak load net metering cap and the real value of solar. Our team hosted a webinar on the Hawaiian market, which details in more depth many of the changes the Hawaiian solar market has seen over the last 5 years. [1] In 1983, Minnesota passed the first state net metering law. [77], The plan would "decrease the value of credits customers receive from the utility in exchange for excess power their panels generate." *** = Only available to customers of Austin Energy, CPS Energy, or retail electric providers in Oncor service areas such as TXU Energy, Reliant Energy, MP2 Energy, or Green Mountain Energy (Green Mountain Energy is not a utility but a retail electric provider; according to www.powertochoose.com).[15].