Greetings, solar enthusiasts and aficionados. Today, I’m bringing to light some notable changes happening in the world of solar, particularly in the state of Arkansas which have significant implications for solar companies and anyone investing in solar panels for their home.
Let’s get into the nitty-gritty of this development. Our discourse revolves around the recent enactment of Act 278 by Arkansas—the ramifications of which spell out some drastic cuts in solar incentives. To those of you who are new to the solar industry, you might be asking, what does this mean? Well, it’s all about net metering contracts.
Net metering is a popular practice through which solar companies reward their customers, kind of like a “thank you” for feeding excess solar electricity back into the grid. Typically, under such agreements, the electric utility matches the retail rate to customers for every kilowatt-hour (kWh) of electricity they contribute. It’s a win-win situation, providing customers with a strong return on their investment in a solar array for home.
However, according to Act 278, things are about to change. For net metering agreements signed after September 30, 2024, the recompense rate will tumble from the full-price retail rate down to the wholesale rate. In layman’s terms, the remuneration is going to be just a fraction of what it used to be. This disheartening news is reminiscent of a similar net metering rate reduction that occurred in California, which led to a distressing number of solar company bankruptcies.
Now, there’s a silver lining for those who had already secured their net metering contracts under the higher rate. They are set to continue enjoying the retail-rate benefits for their solar array until September 2040.
Additionally, Act 278 does impart some advantage to customers. It now permits meter aggregation onto a single bill. This is great news for property owners with large homes or farms. They can link their billing to one meter rather than dealing with multiple-meter systems.
It’s interesting that these changes are happening in Arkansas, a state whose net metering program dates back to 2001. The General Assembly had then enthusiastically supported net-metering, stating it would not only promote the use of renewable energy resources and technologies, but also attract energy-technology manufacturers and make it easier for customers to access these technologies.
Currently, solar accounts for just under 3% of Arkansas’ electricity. While the majority is derived from utility-scale solar fields, 2022 marked a record year for the state in terms of rooftop residential solar installations.
These changes leave us with much to ponder on, as we navigate our way towards a clean energy future. Keep in touch to remain updated with the latest news, tips and tricks for your journey with solar!
Original Articlehttps://pv-magazine-usa.com/2024/09/19/arkansas-to-cut-11-solar-net-metering-rate/
