Mon Power and Potomac Edison seek to change net metering policy, potentially making solar less affordable for West Virginians and stifling the state’s growing solar industry.
As the cost of solar panels continues to decline, many homeowners and businesses across the country have been investing in solar energy to save money on their electricity bills and reduce their carbon footprint. West Virginia, a state known for its coal industry, has seen a slow but steady growth in its solar industry in recent years. However, two major utility companies in the state are now proposing changes to the net metering policy, which could make solar less affordable for West Virginians and threaten the state’s budding solar industry.
Utility companies propose slashing solar incentives:
Mon Power and Potomac Edison have filed a rate case with the West Virginia Public Service Commission, requesting a restructuring of the current net metering policy for future solar customers. They are seeking to change how much users are credited for selling back power generated through solar. Currently, solar customers are credited at a fair market value, which is the same price the power companies charge other residential customers for electricity. However, the utility companies want to credit solar customers at a “wholesale rate” of $0.0663 per kilowatt hour, roughly half of the rate charged by the companies.
The companies argue that this change is necessary for fairness, ensuring that solar customers pay for the distribution, transmission, and capacity facilities they use and are not subsidized by non-solar customers. However, cost-benefit analyses have shown that the current net metering policy imposes no significant increase for non-solar ratepayers and that the economic benefits of solar outweigh the costs.
A threat to West Virginia’s budding solar industry:
If the proposed changes to the net metering policy are approved, it could discourage further investment in solar energy in West Virginia. The return on investment and projected savings for future solar owners would be affected, potentially doubling the time it takes for homeowners to recoup their costs. This could have a significant impact on the state’s solar industry, which has been growing steadily over the past few years.
Currently, around 3,000 homes and businesses in West Virginia participate in net metering. While solar jobs account for less than 1% of the state’s energy jobs, there has been a 21.5% growth in solar jobs over the last five years. Net metering is seen as the backbone of equitable solar policy, and cuts to net metering policies in other states have resulted in a stifling of solar energy growth.
Conclusion:
The proposed changes to the net metering policy in West Virginia could have far-reaching consequences for the state’s budding solar industry and the affordability of solar energy for its residents. While utility companies argue for fairness, experts and advocates maintain that the current net metering policy is economically beneficial for all customers and that solar energy offers numerous benefits, including increased grid resiliency and reduced energy costs. As the state regulators consider the utilities’ request, the future of solar energy in West Virginia hangs in the balance, with potential implications for the environment, the economy, and the energy landscape of the state.
