In the ever-evolving landscape of the solar industry, keeping up with all changes is key in maximizing the value you get as a consumer or a business. The solar trends document for 2023, shared by The North Carolina Clean Energy Technology Center, provided some valuable insights into the state of the US solar policy.
As a professional and a passionate solar expert, I find the transition away from traditional net metering structures to new rate structures highly noteworthy. This transformation is impacting not just homeowners who are investing in solar panels for their home, but businesses too. Multiple states and solar companies are bringing these changes into effect.
In 2023, a total of 273 policy and rate changes at the state and utility level were proposed or enacted, with a clear trend towards “net billing”. In net billing, electricity that consumers generate but do not use is sold to electric utility companies. This new shift towards net billing has been observed in states like California, Arkansas, and Idaho among others.
One more exciting trend in the solar industry is targeting low-to-moderate income (LMI) customers. The US Environmental Protection Agency’s $7 billion “Solar for All” program encourages solar adoption among income-qualified customers. Alongside, different states are coming up with community solar incentives for the LMI population. If you’re considering an affordable solar array for home, this could be the right time to do so.
The use of time-varying rates for excess generation has grown too. States like North Carolina have a new time-of-use net metering tariff, while Hawaii has approved time-varying export credit rates for its newest smart distributed energy resource tariff. Even California has begun to utilize this rate model.
There has been a notable rejection of distributed generation fees, which utilities have often proposed to impose on rooftop solar owners. Such fixed fee requests have declined, offering more incentive for homeowners to opt for solar panels.
Community solar has seen expansion, with customers subscribing to a portion of off-site solar facility’s production in exchange for utility bill credit. Maryland, Minnesota, and New Jersey have moved towards next-gen community solar programs. California too is contemplating a newer community solar program model.
Project siting for community solar is a big talking point, with states implementing rules to limit eligible sites. However, incentives or preferences are given for projects located in preferable locations such as industrial areas or brownfields.
States have raised the system size limits or aggregate capacity limits for programs like net metering, while solar-plus-storage programs are being structured in a way that promotes pairing a battery with your household solar panel system. For instance, Hawaii’s new distributed energy resource tariffs are encouraging paired systems.
These changes in solar policy and other fresh trends are shaping a new future for solar companies and for those who intend to install a solar array for home. The solar industry’s advancements show that the adoption of renewable energy is not just preferable, but also increasingly accessible. It’s a perfect time to join the wide spectrum of solar consumers benefiting from these developments!
Original Article: https://pv-magazine-usa.com/2024/01/24/distributed-solar-and-storage-policy-trends/
