Guest writer

Solar future bright

Renewable energy can benefit all

FRANK KELLY
SPECIAL TO THE DEMOCRAT-GAZETTE

There are many shining examples of community power networks paving the way to the distributed generation frontier. States, cities and neighborhoods across the country are implementing new policies and programs to give renewable-energy developers a spot on the playing field.
As a customer with a net-metering facility, I create electricity from solar electric panels on my roof. If my facility consumes the electricity, I avoid buying kilowatts from the utility. If the electricity generation is in excess of what I need, it goes back to the utility for credit against those kilowatts I need at night or when the sun is not shining. At the end of each billing period, the amount of kilowatts I received from the utility is offset by the amount of kilowatts I sent back.
By entering into long-term purchase agreements for the total generation from the renewable-energy system instead of trading kilowatt hours back and forth like we have with net-metering, it would only mean sharing generation capability with independent system owners.
The Arkansas Renewable Energy Association is one of those groups working tirelessly to help raise the top-of-mind awareness of fellow Arkansans to think more about how their electricity is generated. Once there is an understanding of the real numbers associated with the democratization of energy generation, there is the realization that we should be promoting this, for diversification reasons alone.
Solar energy generated by rooftop solar panels is something that most Americans can access. This should come as no surprise given the falling costs of solar over the last few years. There is little reason to insert a leasing component into a plan that should end with system ownership being retained by the person wanting a little energy independence and protection from future electricity price increases.
Rooftop solar system owners continue to pay for the privilege of being connected to the grid through a monthly customer charge that includes a state sales tax. What the utility is getting out of the roof-mounted solar electric systems are kilowatt hours being created at numerous locations around the state. There are no line losses since excess generation flows to the next consuming customer, not back to the substation and then out again.
Distributed generation from rooftop solar electric systems requires no new utility-owned infrastructure. It lightens the load on the transmission lines, allowing existing equipment to continue in service longer, reducing stress on the lines, and delaying the need for additional grid infrastructure improvements. Rooftop solar electric systems generate electricity during the time of day when it is needed most.
If Arkansas wants to diversify how our electricity is generated, we should move to enact incentives to promote more renewable-energy installations instead of carrying on with electric utility cartel deterrents. Owners of renewable-energy systems take their own funds or, if necessary, borrow funds to invest, insure, upkeep, and maintain their renewable energy systems. These ownership costs are not borne by other electric utility customers.
The benefits of rooftop solar electric systems are beneficial to all parties whether they own their own system or not. The most economical and effective policies reward renewable-energy electricity production with an added Renewable Energy Payment (REP). A contract for a REP on your individually owned renewable-energy system would breeze through the lending approval process. A REP stimulus would only be needed for a limited number of years.
Enacting policy that puts the electric meter as the only thing between the generation and the reward cuts out many middlemen and as much of the present bureaucracy. The price of rooftop solar electric systems has never been lower. All across Arkansas, if your site is suitable for a rooftop solar electric system, you can prepay all or a portion of your next 30 or more years of on-site energy needs at a lower cost than what you are paying your local electricity provider now. That, my friends, is what the utilities are afraid of.
Any state with an existing netmetering policy should absolutely focus on eliminating the artificial barriers that the electric utility cartel currently has on the books. Arkansas’ own net-metering rules need intervention. Do we have any folks in charge that care enough about it?
Embracing and promoting efficient, effective, sustainable, and temporary policy incentives that reward the production of electricity from independent renewable energy systems should be enacted.
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Frank Kelly is chairman of the Arkansas Renewable Energy Association.