Sarah Shemkus, Author at Energy News Network https://energynews.us/author/sshemkus/ Covering the transition to a clean energy economy Mon, 09 Sep 2024 17:14:13 +0000 en-US hourly 1 https://energynews.us/wp-content/uploads/2023/11/cropped-favicon-large-32x32.png Sarah Shemkus, Author at Energy News Network https://energynews.us/author/sshemkus/ 32 32 153895404 In net metering case, New Hampshire regulators focus on costs while ignoring benefits, advocates say https://energynews.us/2024/09/09/in-net-metering-case-new-hampshire-regulators-focus-on-costs-while-ignoring-benefits-advocates-say/ Mon, 09 Sep 2024 10:00:00 +0000 https://energynews.us/?p=2314582 A crane lifts a solar panel onto a sloped roof as two workers await.

An agreement among utilities, generators, and clean energy advocates didn’t quell skeptical questioning by state utility regulators, who are focused heavily on whether there is a cost burden for other ratepayers.

In net metering case, New Hampshire regulators focus on costs while ignoring benefits, advocates say is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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A crane lifts a solar panel onto a sloped roof as two workers await.

Solar customers and clean energy advocates are waiting to see if New Hampshire will continue its system for compensating customers who share excess power on the grid. 

State regulators at a recent hearing seemed unconvinced about the policy’s benefits, despite support from utilities, customers, and hundreds of residents who submitted public comments on a proposed extension. 

“This commission is highly skeptical of anything involving energy efficiency or clean energy, and focused almost solely on cost,” said Nick Krakoff, senior attorney for the Conservation Law Foundation in New Hampshire. 

These compensation plans, generally referred to as net metering, are widely considered one of the most effective policies for encouraging more solar adoption. Recently, however, several states have changed or considered changing their programs, as utilities object that the policies are too costly and some politicians and policymakers push for more purely market-based approaches. 

New Hampshire’s net metering rules haven’t been modified since they were established in 2017. The state’s public utilities commission opened a case to consider the question of whether and how to adjust the rules in September 2022. A year into the proceedings, the state’s major electric utilities — Eversource, Liberty Utilities, and Unitil — came out in support of continuing the existing system of net metering, despite the tendency of utilities nationwide to consistently push for lower net metering rates. The move was a welcome surprise for environmental advocates. 

“If you don’t have a compensation rate that’s high enough, you’re not going to have customers that are going to want to invest in solar panels or other renewable energy,” Krakoff said.

Striking an agreement

In early August, a diverse coalition including the utilities, the Conservation Law Foundation, Clean Energy New Hampshire, Granite State Hydropower Association, Standard Power of America, and Walmart reached a settlement agreement about the future of the policy. 

The agreement calls for the state to keep the current net metering structure in place for two years; at the end of two years, utilities would propose time-of-use rates for net metering, so the compensation rate more closely matches the real-time value of the power being sent into the grid. Also, any projects that join the net metering program during those two years will receive the same compensation for 20 years before transitioning into whatever new system is created by then (currently the compensation ends in 2040). 

An influx of public comments has also reflected wide support for the tenets of the agreement. Nearly 450 comments were submitted since the beginning of the year, more than Sam Evans-Brown, executive director of Clean Energy New Hampshire, has ever seen in a public utilities case, he said. The vast majority urge the commission to maintain the current net metering system. 

Peterborough resident Brian Stiefel was among those who filed comments. He and his wife installed 37 solar panels on their home in 2021, at a cost of $51,000. Though the solar doesn’t fully cover their electric bills, it provides $2,000 to $3,000 in savings per year, in large part due to net metering. 

“A big part of the decision to do this was the fact that the state would approve us for net metering,” Stiefel said in an interview. “If that’s going to change it could have a significant financial impact on everybody who has panels and is set up with net metering.”

An uncertain path forward

However, clean energy advocates say they have seen some signs in recent months that the commission might not be paying much attention to the benefits the system creates, while seeking out evidence that net metering creates a cost burden for consumers who aren’t part of the program. 

“The concern is that the chair is looking for a cost shift and is going to do whatever it takes to find one,” Evans-Brown said. 

Last spring, the commissioner requested a series of records in the case, several focused on gathering information about other states’ net metering programs — information that did not seem relevant to the decisions needed in New Hampshire, Evans-Brown said. The commission also requested, in a different docket, information about stranded cost recovery, which it then placed into the record on the net metering case as well, a move energy advocates interpreted as an attempt to focus on costs to the exclusion of benefits.

Then, in hearings on August 20 and 22, the commissioners asked questions that seemed focused on finding costs being passed on to consumers, even though there is simply no such evidence on the record, Krakoff said.

Advocates’ concerns are magnified by the commission’s history: In 2021, the commission drastically reduced funding for the state’s energy efficiency rebate and incentives. Though the utilities, consumer advocates, and environmental groups had come to an agreement to raise funding for the programs, the commission claimed that the program would burden consumers and that the state should focus on promoting market-based energy efficiency services. 

Current commission chair Daniel Goldner was one of the commissioners who signed the energy efficiency decision. During his confirmation hearing earlier that year, Goldner expressed skepticism about climate science, and advocates raised concerns about his lack of experience in the energy field.

“They expressed strong skepticism of energy efficiency and actually gutted the program,” Krakoff said, comparing that case to the present-day net metering proceedings. “It’s very concerning.”

Now advocates, homeowners, and other stakeholders can only wait to see what the commission decides and when they decide it. An order could come by the end of the year, said Evans-Brown, or the commissioners could decide to push the matter well into the new year — there are no deadlines set on the process. 

Should the commission in some way reject the settlement, there is still hope the legislature would take action to protect net metering. As part of the proceeding, state Sens. Kevin Avard, Howard Pearl, and David Watters submitted a letter explaining their belief that reducing net metering compensation would be against the goals of the legislature. 

“It is the intent of the legislature to preserve a viable net metering program in the state of New Hampshire, and we will take action to do so if necessary,” they wrote.

Resolving the question through legislative action, however, would leave the matter open and undecided for even longer, making it harder to encourage solar development in the state, advocates noted. 

“We were expecting this to be a challenging docket when this was first announced,” Evans-Brown said. “It’s frustrating, but not surprising.”

In net metering case, New Hampshire regulators focus on costs while ignoring benefits, advocates say is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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Massachusetts cities are quickly embracing new emission-slashing building code option https://energynews.us/2024/09/03/massachusetts-cities-are-quickly-embracing-new-emission-slashing-building-code-option/ Tue, 03 Sep 2024 10:00:00 +0000 https://energynews.us/?p=2314476 A building under construction in Somerville, Massachusetts.

Since state lawmakers approved an optional stretch code early last year, 45 municipalities covering about 30% of the state’s population have adopted the new guidelines.

Massachusetts cities are quickly embracing new emission-slashing building code option is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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A building under construction in Somerville, Massachusetts.

A year and a half since Massachusetts introduced an optional new building code aimed at lowering fossil fuel use, climate activists are heartened by how quickly cities and towns are adopting the new guidelines. 

The new code, known as the specialized stretch code, became law in 2023. Since then, 45 municipalities representing about 30% of the state’s population have voted to adopt its guidelines. The code is already active in 33 of these communities and scheduled to take effect over the next year in another 12.

“That is just an astounding statistic to me,” said climate advocate Lisa Cunningham, one of the founders of decarbonization nonprofit ZeroCarbonMA. “The rollout has been, quite frankly, amazing.”

Massachusetts has long been a leader in using opt-in building codes to push for decarbonization of the built environment. In 2009, the state introduced the country’s first stretch code, an alternative version of the building code that includes more stringent energy efficiency requirements. Municipalities must vote to adopt the stretch code, and the vast majority have done so: As of June, just 8.5% of residents lived in the 50 towns and cities without a stretch code. 

The specialized stretch code takes this approach a step farther. The goal is to create a code that will help achieve target emissions reductions from 2025 to 2050, when the state aims to be carbon-neutral. In 2021, the legislature called on the state to create an additional opt-in code that would get close to requiring net-zero carbon emissions from new construction. 

“We want to work towards decarbonizing those buildings, right from the start, as we look to a future in 2050 while we are net-zero in greenhouse gas emissions,” said Elizabeth Mahony, commissioner of the Massachusetts Department of Energy Resources.

At the same time, electrified, energy-efficient homes will mean lower energy costs for residents over time, more comfortable and healthier indoor air, and more stable indoor temperatures when power outages occur, she said. 

The construction industry, meanwhile, has concerns about the measure’s impact on upfront costs. 

Getting to net-zero buildings

The resulting code doesn’t require buildings to achieve net-zero emissions right away, but attempts to ensure any new construction will be ready to go carbon-neutral before 2050.

There are a few pathways for compliance. A newly built home can use fossil fuels for space heating, water heating, cooking, or drying or be built fully electrified. If the new home uses any fossil fuels, however, it must be built to a higher energy efficiency standard, be wired to ready the house for future electrification, and include solar panels onsite where feasible. In all cases, homes must be wired for at least one electric vehicle charging station.

Larger, multifamily buildings must be built to Passive House standards, a certification that requires the dramatic reduction of energy use as compared to similar buildings of the same size and type. Single-family homes can also choose to pursue Passive House certification. 

Decarbonization advocates are pleased with the rollout so far. The state’s major cities, including Boston, Worcester, and Cambridge, were all quick to adopt the code. In most municipalities the vote to adopt the specialized code has been near-unanimous, said Cunningham.

And more communities are considering the specialized code.

“We’re talking to a lot of communities that are contemplating it for their town meetings this fall,” Mahony said. “We know there is a growing sense out there of wanting to do this.” 

 The key to convincing cities and towns that the code is a good idea is for municipal governments to understand and frame the code as a consumer protection measure, rather than an added burden, Cunningham said. The requirements of the specialized code along with state and federal incentives can save on construction costs upfront, and will ensure buildings cost less to operate during their lifetime, offering significant benefits to residents, she said. 

“At the point of construction this is an incremental expense – it’s barely even a blip,” she said. “Then it directly reduces your future electricity bills.”

A troublesome transition?

Many in the construction industry, however, disagree with Cunningham’s take. Emerson Clauss III, a director with the Home Builders and Remodelers Association of Massachusetts, has found the equipment needed to reach the high standards in the code is more expensive than its authors counted on, and supply chain issues are causing even higher prices.  

“It’s had quite a rough start to it,” Clauss said. “It’s adding considerable cost to new housing.” 

He also worries that the high cost of electricity now — Massachusetts electricity prices are the third highest in the country — spells near-term financial trouble for homeowners that feel forced to go all-electric. 

“The idea that it’s going to cost less 20 years from now — what does that do for people who need to get into a house now?” he asked.

Furthermore, the creation of a new optional code, he said, adds another variable for builders already jumping between the basic code and the previous stretch code, as well as learning the new rules in ten communities banning fossil fuels as part of a state pilot program. Even municipal building directors aren’t able to keep up, Clauss said, recalling a confused call with a suburban building inspector who needed 20 minutes to confirm it was OK to install a natural gas line in a new home. 

In Cambridge, one of the first cities to adopt the specialized code, Assistant Commissioner of Inspectional Services Jacob Lazzara noted there was some confusion at the outset, but time and proactive communication from the city helped ease the transition. The city has held trainings, created materials to hand out to builders and design professionals, and fine-tuned internal communications to make sure the staff is all well informed. 

“There was a little bit of shock for everyone at first, but I think we’re in a good place right now,” Lazzara said.

Massachusetts cities are quickly embracing new emission-slashing building code option is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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Massachusetts awards $53 million to help affordable housing operators cut emissions and make homes healthier https://energynews.us/2024/08/02/massachusetts-awards-53-million-to-help-affordable-housing-operators-cut-emissions-and-make-homes-healthier/ Fri, 02 Aug 2024 09:59:00 +0000 https://energynews.us/?p=2313740 A view of downtown Boston.

The latest round of grants will improve insulation and electrify heating and cooling systems as the state aims for net-zero emissions by 2050.

Massachusetts awards $53 million to help affordable housing operators cut emissions and make homes healthier is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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A view of downtown Boston.

Massachusetts has awarded $53 million — and announced plans for additional funding — to allow affordable housing operators to execute energy efficiency retrofits that are expected to reduce carbon emissions, cut energy bills, and create healthier, more comfortable homes for residents. 

The state in late July announced the second round of awards in the Affordable Housing Decarbonization Grant Program, allocating $26.1 million to five organizations to improve insulation, tighten building envelopes, and switch to heat pump heating and cooling systems. These grants come seven months after an initial round of $27.4 million was awarded to seven affordable housing operators statewide. 

“This has been a really critical funding stream for moving forward critical energy projects at some of our family public housing sites,” said Joel Wool, deputy administrator for sustainability and capital transformation at the Boston Housing Authority, which received grants in both rounds.

Along with the most recent round of awards, the state also announced it would invest another $40 million into the program in anticipation of giving out another set of grants in the fall.

The program was designed to address two major policy goals: decarbonization and addressing the state’s affordable housing crisis. 

Massachusetts has set the ambitious goal of going carbon-neutral by 2050. Buildings — which contribute 35% of the state’s carbon emissions — are a particularly important sector to target for decarbonization. This means finding ways to retrofit the state’s existing housing stock, much of which is drafty, heated by fossil fuels, and decades — or even centuries — old. 

At the same time, Massachusetts is experiencing an acute housing crisis. State officials estimate at least 200,000 new homes are needed to accommodate demand by 2030. Finding an affordable home is even more challenging for lower-income residents faced with soaring rents and home prices — and often, high energy bills. 

“We have such a housing crisis in Massachusetts that we want to do anything we can to create more housing, but also to make the housing we have now a better place to live,” said state Energy Department Commissioner Elizabeth Mahony. “These are investments in our infrastructure.”

Nonprofit Worcester Common Ground received an $820,000 grant in the latest round that it will use to complete deep energy retrofits on four buildings that were last updated some 30 years ago. The money will allow the renovations to include air sealing, more energy-efficient windows, and extra insulation. The grant will also allow the buildings to go fully electric, including with air source heat pumps that will provide lower-cost, more comfortable heating and cooling.

“Even though it’s a higher upfront cost, the hope is that maybe it reduces expenses going forward,” said Timothy Gilbert, project manager for Worcester Common Ground. “It might sound a little cheesy but we really do care about the well-being of the folks who live in our houses.”

In most cases, the grant money is being combined with other funding to allow more complete — and even downright ambitious — upgrades. In Worcester, other funding sources will pay for rooftop solar panels that will make the newly energy-efficient buildings even more cost-effective and environmentally friendly. The Boston Housing Authority is using its latest $5.8 million award as part of a larger project that aims to completely decarbonize the Franklin Fields housing development in the Dorchester neighborhood by combining energy efficiency upgrades and Boston’s first networked geothermal system. 

In the Boston neighborhood of Roxbury, the Madison Park Development Corporation is receiving $13.5 million from the Affordable Housing Decarbonization Grant Program to do work at its 331-unit Orchard Gardens development. But it is also seeking out other sources to meet the $20 million expected cost of the planned sustainability upgrades.

“It’s a big property and the heart of one of Boston’s oldest, most diverse, most underserved neighborhoods,” said Oren Richkin, senior project manager for the organization. “This grant money is pivotal for this project.”

Supporters of the program are expecting it to strengthen the state’s ability to respond to climate change in the future as well. Switching affordable housing units from fossil fuel heating to heat pump heating and cooling will allow residents to stay comfortable and safe in their own homes during increasingly hot summers, Wool said. 

The funding could also help nudge the ideas of deep energy retrofits and electrification more into the mainstream, Mahony said. 

“We are essentially socializing these programs — the more we do it, the more people will get used to the ideas,” she said. 

As the recipients of the first round of grants begin their projects, the state is starting to learn how to operate the program more effectively. The state has already, for example, started providing some technical assistance to organizations interested in applying for future rounds of funding. Continued conversations with building owners and nonprofits will be essential to creating an even stronger program moving forward, Mahony said.

“We’re setting ourselves up for success in the future,” she said.

Massachusetts awards $53 million to help affordable housing operators cut emissions and make homes healthier is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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Massachusetts aims to ‘adapt with the times’ with updates to solar incentive program https://energynews.us/2024/07/25/massachusetts-aims-to-adapt-with-the-times-with-updates-to-solar-incentive-program/ Thu, 25 Jul 2024 10:00:00 +0000 https://energynews.us/?p=2313529 Solar panels suspended over a school parking lot.

Proposed adjustments to the Solar Massachusetts Renewable Target program encourage solar on buildings and parking lots, and improve access for low-income residents.

Massachusetts aims to ‘adapt with the times’ with updates to solar incentive program is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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Solar panels suspended over a school parking lot.

Massachusetts officials, advocates, and businesses are hoping proposed changes to the state’s solar incentive program will help reinvigorate a flagging market and give more disadvantaged residents access to the benefits of renewable energy. 

“The program has been pretty set in stone since it first launched,” said Katie Moffitt, project development manager for solar investment firm Sunwealth. “I am very excited about making the program more responsive to the needs of the solar industry and allowing us to adapt with the times.”

The state’s energy department earlier this month unveiled an extensive set of proposed adjustments to the Solar Massachusetts Renewable Target, or SMART, program, the first major overhaul since the program launched in 2018. The suggested changes include strategies to ensure subsidy rates keep up with the solar market, incentives to encourage more installation of solar on buildings and previously developed land, and plans to make solar power more accessible to low- and moderate-income residents. 

The state is accepting feedback on the proposal until August 2, and expects to file final draft regulations in the fall. 

The proposal comes at a moment when the state has seen significant declines in new solar power coming online. In 2021, Massachusetts saw more than 600 megawatts of new solar installed, according to the Solar Energy Industries Association; in 2022 and 2023, less than 400 megawatts were installed each year. Yet the state’s climate plan calls for at least 27 gigawatts of solar to meet its goal of going carbon-neutral by 2050.

“We know, based on historical deployment rates, that we’re falling behind those goals,” said Samantha Meserve, director of the state’s renewable and alternative energy division. “We need to spur more development.”

Adaptable rates

Much of the slowdown in solar development is due to a mismatch between market conditions and state incentive rates, said those in the industry. SMART works by providing a fixed rate for every kilowatt-hour of power generated by a solar installation, with increased rates (called “adders”) available to projects that advance certain policy goals, like serving low-income populations. The set rates were intended to help encourage development with financial support and also create stability and predictability for developers.

The base rates were set when the program launched in 2018, and were designed to decline as more installations were built. The idea was that the solar market would gain steam and prices would continue falling, making state support less necessary over time. 

However, the market did not cooperate with this vision: Supply chain problems made equipment more expensive, inflation increased costs for materials and labor, and rising electricity rates canceled out much — and sometimes all — of the financial benefit the SMART payments provided. 

“That model theoretically would have worked fine in a noninflationary environment, but worked very poorly in the inflationary period,” said Isaac Baker, co-CEO of solar developer Resonant Energy. 

The proposal tackles this problem by instituting an annual system for setting rates. Each year, the state will undertake an analysis of the current market conditions and progress toward state solar targets, and use this information to determine the program’s rates and capacity for the following year. Developers will provide real cost details to ensure the accuracy of the process. 

“We achieved a lot of certainty in the last program, but we now need certainty with flexibility,” Meserve said. “We know we’re losing momentum to get to some of our goals because of that certainty.”

The proposal’s approach to deciding how much capacity to support each year, however, has some in the industry a bit wary. For the first two years, the capacity for projects larger than 25 kilowatts would be set at 300 megawatts; in subsequent years, the annual analysis would determine the capacity. 

This limit does not help encourage more development, said Lindsay Bourgoine, vice president for policy for the Solar Energy Business Association of New England. And the starting point of 300 megawatts a year does not come close to supporting the state’s goal of hitting 10 gigawatts of solar power by 2030, she said. 

“We remain pretty concerned about the use of caps,” Bourgoine said. 

Getting siting right

Additional changes to the program aim to encourage more solar installations on buildings, parking lots, and other already-developed land.

“We’re making it more attractive to site projects in the built environment,” Meserve said.

A 2023 study found the state has highly suitable sites for 54 gigawatts of rooftop and canopy solar potential. At the same time, some environmental groups have been raising concerns about large solar installations disturbing important wildlife habitats and forests that can pull carbon from the air.

“We can’t be doing that with state money,” said Michelle Manion, vice president of policy and advocacy for Mass Audubon. 

However, the economics of building large, ground-mounted arrays on previously undeveloped land have generally been more favorable. The new SMART proposal lays out several ideas to rebalance that equation. The proposal would lift the cap on subsidizing developments smaller than 25 kilowatts, a category that includes most residential projects and many installations for nonprofits, houses of worship, and small businesses. 

The proposal also increases adders connected to projects in the built environment. The adder for building-mounted projects would go from 2 cents to an estimated 3 cents, and the adder for building over a landfill would increase from 4 cents to 6 cents. 

Canopy-mounted systems would see both an increased adder — from 6 cents to 8 cents per kWh of energy produced — and a new definition. Whereas the current program awards a canopy adder only to projects over parking lots, pedestrian walkways, and canals, the revamped program would widen the criteria to include any array mounted on a structure high enough to maintain the function of the area beneath. This change opens the door for canopy projects shading everything from junkyards and gas stations to compost piles and picnic areas. 

“You’ll start to see a lot more interesting and creative applications like that,” said Ben Underwood, Baker’s co-CEO at Resonant Energy.

A new adder, likely starting out at 4 cents per kilowatt-hour, would also be created for raised racking on rooftops: mounting systems that raise solar panels up high enough that other equipment such as climate control systems can still operate and be accessed beneath them. This addition has the potential to unlock enormous amounts of roof space for development, Underwood said. On some of Resonant’s smaller projects, it could even triple the size of projects that could fit on a roof, he said. 

While the changes incentivize solar in the built environment, they also attempt to narrow the criteria for building in previously undeveloped greenfields to make sure only “cream of the crop” sites are developed, Meserve said. While the existing program decides whether land can be developed by looking at the entire parcel, the updated iteration would look more closely at the footprint of a proposed array to make sure it is not disturbing the most valuable green spaces and habitats.

The proposal also calls for an increased “subtractor” — a reduction in the base SMART rate — for greenfield developments. The rate would go down 6 cents plus an additional 0.4 cents per acre of land affected, a significant increase from the current subtractor which tops out at 0.1 cents. Developers can earn back the 6 cents through a community engagement adder by proving they’ve worked with the community to mitigate the impacts the project will have, an element Meserve said will help the state focus on only the best developments. 

Bourgoine, however, said many solar installers are worried that the hefty subtractor will slow down solar development too much at a time when the state needs to be accelerating its move to renewable energy. 

“There are situations where the subtractor could cause damage where it doesn’t need to,” she said. 

Sharing the benefits

New strategies could also make the benefits of solar energy more accessible to low-income households, which have so far made up only a very small fraction of the consumers using SMART-subsidized power. 

The proposal would expand the list of facilities that qualify for low-income adders to include deed-restricted affordable condominiums, homeless shelters, domestic violence shelters, and other affordable housing buildings not covered by the current definition. 

The new plan would also broaden the definition of a low-income customer. Under current guidelines, a low-income customer is someone who receives a discounted rate from the electric utility or who lives in a designated low-income area. The new definition would also include consumers enrolled in other needs-based programs to qualify as low-income, and those who self-attest that they fall under the set income caps. 

“This will make participating in low-income solar a much more accessible option,” Moffitt said. 

Furthermore, community solar developments will now be required to enroll a minimum of 40% low-income customers to receive the community solar adder of 7 cents. Though community solar is fairly widespread in Massachusetts, customers have generally been those with higher incomes and credit scores. The current program includes an adder for low-income community solar, but it is not often used because of the obstacles of locating customers — obstacles the new definitions would lower significantly.

“This new program will lead to there being a massive shift in value coming from stand-alone community solar,” Baker said. “A huge amount of that value is going to be directed to low-income tenants and ratepayers throughout the commonwealth, which is a really positive step.”

Massachusetts aims to ‘adapt with the times’ with updates to solar incentive program is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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New Hampshire law provides new solar incentives for cities, drops ineffective consumer rebate program https://energynews.us/2024/07/23/new-hampshire-law-provides-new-solar-incentives-for-cities-drops-ineffective-consumer-rebate-program/ Tue, 23 Jul 2024 09:55:00 +0000 https://energynews.us/?p=2313436

Officials say they eventually hope to develop new incentives for consumers, acknowledging that the now-defunct rebate scheme wasn’t working.

New Hampshire law provides new solar incentives for cities, drops ineffective consumer rebate program is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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A recently signed New Hampshire law makes significant changes to the operations of the state’s Renewable Energy Fund, directing money to help towns and cities develop municipal solar projects and ending a residential solar rebate program that was generally viewed as deeply flawed. 

“The previously existing program had sort of run its course,” said Joshua Elliott, director of policy and programs in the state energy department.

The Renewable Energy Fund, created in 2007, is a pool of money the state uses to support renewable and thermal energy initiatives through grants and rebates. It is funded by annual compliance payments made by electric service providers that failed to buy the legally mandated proportion of their power from renewable sources in the previous year. 

The sum the fund collects can vary widely from year to year, ranging from as low as $1.3 million in 2009 to $19.1 million in 2011. More recently, revenue has hovered around $7 million. 

This money is then allocated across several programs including those supporting solar hot water heating, low-and-moderate income community solar, and wood pellet boilers and furnaces for residential, commercial, and industrial customers. 

Advancing municipal solar

The new funding for municipal solar projects represents the next step for an approach just getting underway in the state. 

Installing solar power can allow a municipality to both cut carbon emissions and realize significant savings on their energy bills. These savings can be used to cut property taxes or to provide additional support or services for residents. Until recently, however, there was little state or federal support for municipal solar. At the same time, getting a municipality to agree to the upfront costs has always been challenging. 

“There’s a variety of competing factors for property tax revenue,” Elliott said. “It can be hard to get a warrant article passed to invest the money to purchase a solar array for town buildings.”

The state began tackling the problem this year with the Municipal Solar Grant Program, which is using a $1.6 million federal grant, part of the 2021 Bipartisan Infrastructure Law, to help cities and towns install solar arrays on municipal property. Lower-income communities that intend to retain complete ownership of their solar system will be eligible for grants up to $200,000; municipalities that don’t meet these criteria can request grants up to $120,000.

Though the program is just getting started — the application period is open until August 1 — the opportunity has already sparked wide interest from municipal governments. Community liaisons for the nonprofit Clean Energy New Hampshire have identified roughly 50 cities and towns likely to apply for a share of the limited funding. 

“There’s been a huge response,” said Sam Evans-Brown, executive director of Clean Energy New Hampshire. “That shows this is a good space to be spending the money in.”

The new legislation calls for funding to be allocated to a new municipal solar program this year, with the sum likely to be announced in late August or early September. Then, before the money can be offered to cities and towns, the state will have to design a new system. The new incentive will be inspired and informed by the program now launching, Elliott said. 

“We’re certainly going to take feedback, have stakeholder sessions,” he said. “And that will help refine what this program looks like.”

Replacing residential incentives

The bill also terminates the state’s rebate program for residential solar and wind installations, an incentive that was widely thought to be ineffective.

The program offered rebates of up to $1,000 to a limited number of households each year. In fiscal 2023, rebates totalling about $424,000 were issued. 

The program used a lottery system to determine what order rebate applications would be processed in each year; applicants closer to the end of the list might not end up receiving any rebate if the funds ran out before they made it to the top of the list. That uncertainty meant the program was doing little to spur additional solar development, Evans-Brown said. 

“It’s almost by definition not getting projects done: If you can’t know for sure if you’re getting rebate, it’s not factoring it into the purchasing decision,” he said. “When we asked residential solar installers if the rebate was helpful they said no.”

The program also accepted applications from any household with a solar array installed after 2012 that has not yet received a rebate, diminishing its impact on new solar development even further. 

“You’re not actually helping to develop the solar market at that point,” Elliott said. 

Though the recent law eliminates this rebate, lawmakers were clear during hearings on the bill that they want to see a replacement residential incentive developed. No plans are yet in the works for such a program, and it is unclear what the timeline would be for designing a new incentive from scratch, Elliott said. Furthermore, the law does not require a new program be enacted.

Elliott, however, has every intention of making sure a replacement program comes to be, he said.

“I made a commitment in public saying, ‘Yes, we are going to do this,’” he said, “and I certainly feel beholden to that.”

New Hampshire law provides new solar incentives for cities, drops ineffective consumer rebate program is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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