On November 18, 2015 the Louisiana Public Service Commission voted to enforce a hard cap of 0.5% on rooftop solar net-metering. This meant that once a utility company reached the cap, they were allowed to stop offering solar credits to new solar customers.
Since the vote, Entergy and SWEPCO filed that they had hit the cap and would no longer be offering net-metering service to new solar customers. Since there is no approved tariff for residential solar customers, Entergy and SWEPCO decided to apply a tariff designed for large energy generators to small residential solar customers. This is why SWEPCO is charging a $12/month “administrative fee”, for example.
The Alliance has compiled a FAQ for your convenience to help you understand the technical parts of what is at stake for your solar value. If you have a question that is not answered here, please email us at info@all4energy.org.
Since the vote, Entergy and SWEPCO filed that they had hit the cap and would no longer be offering net-metering service to new solar customers. Since there is no approved tariff for residential solar customers, Entergy and SWEPCO decided to apply a tariff designed for large energy generators to small residential solar customers. This is why SWEPCO is charging a $12/month “administrative fee”, for example.
The Alliance has compiled a FAQ for your convenience to help you understand the technical parts of what is at stake for your solar value. If you have a question that is not answered here, please email us at info@all4energy.org.
UPDATES
August 2016:
Solar Tax Credit Update:
The Louisiana Legislature changed the state solar tax credit in the summer of 2015. As a result, the credit changed to a first-come first-served basis. Additionally, caps were applied to annual payments for the program. There was no consideration given to homeowners who purchased solar systems before the law went into effect, as a result the program was quickly spent. For more resources, and to register as a taxpayer affected by this new solar legislation, please visit gsreia.org.
The Louisiana Legislature changed the state solar tax credit in the summer of 2015. As a result, the credit changed to a first-come first-served basis. Additionally, caps were applied to annual payments for the program. There was no consideration given to homeowners who purchased solar systems before the law went into effect, as a result the program was quickly spent. For more resources, and to register as a taxpayer affected by this new solar legislation, please visit gsreia.org.
May 2016:
There was no vote or discussion of the solar issue at the May 18th Public Service Commission meeting. The solar issue will be on the agenda at next month’s Public Service Commission meeting. Please continue to call your Commissioner and tell him you support fair net-metering!
May 2016:
The next Public Service Commission meeting will be held on May 18th at the Galvez Building in Downtown Baton Rouge. There will be discussion and a possible vote on the staff’s recommendation.
LPSC staff has submitted a recommendation that Phase 1 rules should continue monthly net metering (for new customers following this order), with any excess electricity exported to the grid DURING the month credited at “avoided cost.” Avoided cost is the average cost for the utility to either generate or purchase a kWh on the open market, and is averaged for the billing period by the utility.
Staff considers this recommendation as part of Phase I of a two phase rule making process, and makes no further recommendations as to a statewide cap, grandfathering, an additional charge for solar customers, or any other changes. If the LPSC votes for a simple adoption of staff’s recommendation, current solar customers will continue at true retail net metering.
Please call your commissioner and let him know you support full net metering and fair compensation for your exported energy. Click the bar on the left to get your commissioner’s contact info.
The next Public Service Commission meeting will be held on May 18th at the Galvez Building in Downtown Baton Rouge. There will be discussion and a possible vote on the staff’s recommendation.
LPSC staff has submitted a recommendation that Phase 1 rules should continue monthly net metering (for new customers following this order), with any excess electricity exported to the grid DURING the month credited at “avoided cost.” Avoided cost is the average cost for the utility to either generate or purchase a kWh on the open market, and is averaged for the billing period by the utility.
Staff considers this recommendation as part of Phase I of a two phase rule making process, and makes no further recommendations as to a statewide cap, grandfathering, an additional charge for solar customers, or any other changes. If the LPSC votes for a simple adoption of staff’s recommendation, current solar customers will continue at true retail net metering.
Please call your commissioner and let him know you support full net metering and fair compensation for your exported energy. Click the bar on the left to get your commissioner’s contact info.
April 2016:
Net Metering was on the agenda for the April LPSC public meeting, but was pulled from the agenda.
March 2016:
The Solar Issue was not on the Public Service Commission agenda in February or March. But on April 15th the official agenda for the Public Service Commission’s April meeting will be published. That means we will know on April 15th if the Solar Issue will be discussed in April. Commissioners still need to hear from you even if the Solar Issue is not on the official agenda for the April 28th Public Service Commission Meeting! In the meantime here are a few things you can do to preserve your right to be justly compensated for solar generated power:
1)Attend the April 28th Public Service Commission meting. Even if the Solar Issue is not on the agenda we will introduce you to your Commissioner so you may give a response to your utility’s proposal to devalue your solar.
2)Calls to your Commissioner are still answered and counted. Keep spreading the word and calling!
3) If the Solar Issue is put on the agenda for the April 28th meeting we will send out another message through our text service and on this page to let you know. (Text LASolar to 313131 for these text updates)
4) There will be another LPSC meeting in May. If the issue is not discussed in April’s meeting, it will likely come up in May. We’ll keep you updated!
Frequently Asked Questions
WHAT IS “NET-METERING”?
Net-metering is a credit that people with solar panels get from their utility company for producing clean energy and delivering it to the grid. For every kWh delivered to the grid, the solar customer gets 1 kWh credit. At the end of the billing cycle, the solar customer only pays the difference on their light bill.
To explain, here is an example.
Solar customer uses 1000 kWh
Solar panels send 500 kWh back to utility
Solar customer’s net energy use is 500 kWh
Customer pays utility for 500 kWh at “retail” or $50
To explain, here is an example.
Solar customer uses 1000 kWh
Solar panels send 500 kWh back to utility
Solar customer’s net energy use is 500 kWh
Customer pays utility for 500 kWh at “retail” or $50
WHAT IS “INTERCONNECTION”?
“Interconnection” happens when a person puts solar panels on their roof and then connects the panels to their power company. This allows the solar customer to put energy onto the grid.
DO I HAVE NET-METERING?
If you installed a solar system before the end of 2015 (or before February 1, 2016 for SWEPCO customers) then you have Net-Metering.
WILL I LOSE NET-METERING?
The utilities say that they will honor your net-metering agreement for 5 years but then they want to change your service to “2-channel billing”.
WHAT IS THE “CAP”?
The cap is set at 0.5% of a utility’s total energy use in any given month. This was set by the Louisiana Public Service Commission to limit solar net-metering because they say that solar customers are not paying for grid costs that other customers are paying for. Louisiana’s cap is the 2nd most limiting cap in the country.
WHAT UTILITIES HAVE REACHED THE CAP?
Entergy Louisiana, SWEPCO, Panola-Harrison Cooperative, Washington St. Tammany Cooperative, and Northeast Cooperative.
WHAT IS HAPPENING NOW?
The Commission is trying to determine what is fair in a post-cap world. We have made a guide to help you understand each side of the argument.
Founded in 1985, the Alliance for Affordable Energy promotes fair, affordable and environmentally responsible energy through education, advocacy and policy.
From the start, we have advanced a philosophy that there is no conflict between lower energy costs and lower pollution, between good jobs and regulation, or between serving the public interest and making a reasonable profit. Because we are both a consumer protection and environmental advocacy organization, our policy work meets at the crossroads of social justice, sustainable economic development, and environmental protection.
From the start, we have advanced a philosophy that there is no conflict between lower energy costs and lower pollution, between good jobs and regulation, or between serving the public interest and making a reasonable profit. Because we are both a consumer protection and environmental advocacy organization, our policy work meets at the crossroads of social justice, sustainable economic development, and environmental protection.