Solar panels: Who is really subsidizing whom?

When the Nevada Public Utilities Commission (PUC) adopted new net-metering rates for residential owners of solar panels, effective Jan. 1, it did so based on NV Energy calculations that solar panel owners were avoiding paying their fair share of infrastructure costs — to the tune of about $52 a month. Thus, the PUC raised the connection fee for net-metering customers and slashed the amount of credit given for power uploaded to the grid.

But The Alliance for Solar Choice begs to differ. In a recent filing with the PUC, the group claims NV Energy failed to adequately take into account the value of that exported energy during peak hours that reduce the need for additional power generation and capital costs.

TASC calculates that each residential solar panel owner provides a net benefit of $12.08 per month to NV Energy and does not require a subsidy of $52 a month. (TASC subsidy filing)

“Exported energy effectively reduces deliveries to neighbors, so should reduce increases in aggregate need to invest to meet capacity growth,” TASC argues in its filing. “These adjustments, which are based on evidence in the record of this proceeding, demonstrate that Vote Smart is correct in concluding that Net Metering does not result in an unreasonable cost shift.”

Vote Smart has also filed challenges to the net-metering decision.

TASC1

OK, I don't actually understand it either, but ...

OK, I don’t actually understand it either, but …

The PUC is considering a NV Energy filing calling for grandfathering rates for existing residential solar and transitioning rates over 20 years.

Meanwhile, the net-metering battle has moved to Washington, where Sen. Harry Reid, D-Nevada, and Sen. Angus King, I-Maine, are seeking an amendment they say would block states from jacking up rates on solar panel owners and save the future of the rooftop solar industry, according to the Review-Journal Washington bureau today and the R-J Carson City bureau yesterday. (Where this power is granted in the Constitution is certainly questionable, because interstate commerce is probably not involved.)

“We should not be pulling the plug on clean energy at a time when more and more Americans are making it work,” Reid said in comments on the Senate floor, according to the R-J.

Meanwhile, on the front page of Investor’s Business Daily, it is reported that subsidies will continue to make residential rooftop solar economical in 2017, but “Nevada won’t be among them.”

IBD says the Nevada PUC overhaul of net-metering rates and the rapid exit from the state of several solar panel installers show the “residential solar market still relies heavily on subsidies and favorable regulation.”

 

“Clearly, you’re not going to have the opportunity you’ve had in recent years in that market,” an analyst told IBD. “Given that, in our view, demand is going to hit the floor in Nevada.”

Amid all this, petitions are being contemplated to allow the voters to overturn the PUC net-metering decision and to break up the NV Energy monopoly, the R-J reports.

Nevadans for Affordable, Clean Energy Choices’ petition would allow NV Energy customers to choose another source of power by 2023. Several casino companies are already trying to get the PUC to allow them to buy cheaper power elsewhere.

 

 

 

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11 comments on “Solar panels: Who is really subsidizing whom?

  1. nyp says:

    Unemployment rate now down to 4.9%.

    I blame that job-killing ObamaCare.

  2. nyp says:

    Private sector jobs growth…

    Under W Bush:↓ 463,000

    Under Obama:↑ 9,858,000

    Socialism!

  3. nyp says:

    So, under President Obama unemployment is under 5%. Gasoline prices are under $2 a gallon. Dollar is strong. Inflation is low.

    What a disaster.

  4. Steve says:

    Then why are futures down?

  5. Steve says:

    And with all that great economic news from Nyp’s filter…..we are flying sideways!

    Woo…..

  6. Steve says:

    I get it now…..

    Nyp’s a short!

    He LIKES when things go south!
    No wonder he likes Democrats.

  7. nyp says:

    If I had gone short on job growth under President Obama I would have lost my shirt.

  8. Steve says:

    Sure…..you made out like a BANDIT today!
    Even on the latest jobs report!

  9. Rincon says:

    It is indisputable that, as the end of Obama’s term approaches, the economy is light years ahead of where it was at the end of the Bush administration. What’s funny though, is how so many people talk as if the President is some omnipotent being, capable of singlehandedly saving or ruining the economy. The economy is the product of machinations so complex that no one can even understand it, much less control it

    Although it’s unrealistic to fully credit Obama with our recovery, it is even more unrealistic to criticize him for a slow recovery. Do we really think he holds that much power? And isn’t it true that the economy cycles relentlessly from bubble to trough to bubble? Maybe a slower recovery will make for a longer, more dependable recovery. Only time will tell. To be sure though, even then, we won’t really know. If the price of oil quadruples or if China’s economy goes down the tube, do we say they have no impact on our economy or that if either happens, it must be the President’s fault? Or do we admit that the economy can only be managed to a limited and uncertain extent?

  10. Steve says:

    Rincon got it!

    Truth is its all coincidence that a Democrat happens to be in the White house during up times. Contrarily there happens to be a preponderance of Republicans in majority control of Congress during these same times.

    The very first thing one learns when managing money in investments is successfully “timing the market” is highly unlikely and a horrible “plan” if such could even be called a plan.
    The markets are a great reflection of economic activity and a clear indication of the trouble facing the FED.

    Mob psychology is nothing more than chaos theory and mobs are what drive the economy.
    Patience is the key, only time will tell and we will all look back and claim to have seen it coming!

  11. Steve says:

    https://www.fidelity.com/news/article/investing-ideas/201602052001BANKRATEBANKRATE_8-265291

    Relevant, Rincon. There is no way to predict the future, but on balance mobs tend to do OK.

    But looking back is 100% accurate.

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