Our Sunshine Solution
Here is a quick guide to the proposals
Utility Proposal |
Alliance Counter Proposal or a “Sunshine Solution” |
|
2-Channel Billing instead of Net-Metering *see below for explanation |
1. Customer pays utility for usage at retail rate. 2. Utility pays customer for each kWh of solar energy at avoided cost plus an added $.01 per kWh benefit for reliability |
The Alliance prefers net-metering 1. New solar customers will be billed for the energy they used, minus the energy they generated and put onto the grid. 2.Any excess energy exported to the grid during a billing cycle will be credited on the next billing cycle at the utility’s avoided cost plus 1.5 cents. (Avoided cost: the cost a utility would have incurred had it supplied the power itself or purchased it from elsewhere) |
Utility Cost Recovery |
1. Solar energy “purchases” are recovered through the fuel adjustment charge. 2. Utility may recover more costs through a rate case |
It is appropriate for the utility to collect under the fuel adjustment charge but we strongly oppose the utility from collecting money from solar customers for energy they did not buy. Why should the utility get paid for energy their customers did not use? |
Battery |
No commitment |
Allowed |
Grandfathering current net-metered customers |
3-5 years |
Not needed. Current net-metered customers should remain net-metered indefinitely or until the full cost of the system has been recovered ($25,000 not $5000). The utilities should not be allowed to usurp customer’s tax treatments or negate interconnection agreements that do not specifically note a change in tariff. |
Cap on amount of solar allowed |
No cap, or a new cap |
No cap |
Cap on size of systems |
Continue 25kW residential & 200kW commercial cap |
No cap or apply the federal cap of 80 MW |
Rights to RECs |
Utility retains rights |
Customer retains rights |
Aggregation |
Not allowed |
Aggregation by residential and commercial customers is allowed and across rate classes. |
*2-Channel billing is the alternative to net-metering that is being considered. Instead of a kWh credit, the solar customer will earn money for every kWh delivered to the power company. The utility wants the solar kWh to be valued at “avoided cost”, which is different for each utility but in the general range of $0.03 – $0.04 per kWh. They have offered an additional cent to compensate for the benefit of solar energy. Here is an example to explain:
Customer uses 1000kWh
Solar panels generate 500kWh
Customer pays utility for 1000 kWh at “retail” or $100
Utility pays customer for 500 kWh at “avoided + $0.1” or about $20-$25
Customer owes $80 – $75
Customer uses 1000kWh
Solar panels generate 500kWh
Customer pays utility for 1000 kWh at “retail” or $100
Utility pays customer for 500 kWh at “avoided + $0.1” or about $20-$25
Customer owes $80 – $75
What’s next?
The Louisiana Public Service Commission will decide on how to value residential solar energy.
Let your Commissioner know you support a fair Sunshine Solution.