Threat to community solar in Maine could potentially drive away developers
Maine has seen a significant increase in community solar capacity, with 1,008 MW installed as of May 2021, a marked rise from the 79 MW in 2019. However, a bipartisan bill currently under consideration aims to reform the state's net energy billing program, causing concern among renewable energy advocates and solar developers.
The proposed legislation seeks to reform Maine's net energy billing program, known as net metering in other states. The bill outlines a new system for compensating commercial and industrial customers who own solar panels, with a focus on gradual, annual rate increases to avoid excessive windfalls for solar owners when energy costs rise.
The bill imposes monthly fees on community solar owners to cover the cost of delivering solar power to consumers. Projects between 1 MW and 3 MW in size would pay $2.80 per kilowatt of capacity monthly, while larger arrays between 3 MW and 5 MW would pay $6 per kilowatt monthly.
Critics argue that Maine's net metering program has created excessive profits for developers while unfairly shifting costs to consumers who don't use solar power. Renewable energy advocates and solar developers, on the other hand, express concern that the monthly fees could deter new projects and put existing operations at risk.
The bill contains provisions that apply specifically to community solar developments, larger-scale installations that sell power to multiple subscribers. Brendan Bell, chief operating officer of Aligned Climate Capital, has expressed concern about the legislation, stating it changes the rules of the market after the fact and has caused his company to stop investing in Maine.
Kate Daniel, Northeast regional director for the Coalition for Community Solar Access, emphasizes the importance of community solar to Maine's clean energy efforts. Many renewable energy advocates and developers agree that the program needs some reform, but they believe the current bill goes too far.
Rep. Sophie Warren, a Democrat and one of the bill's sponsors, emphasizes the importance of fighting climate change in an economically just way. The sponsor of the bill, however, remains unidentified in the provided search results.
The legislation does not address the compensation rate for residential solar customers. It does not discuss any potential changes to the compensation rate for commercial and industrial solar customers beyond the focus on gradual, annual rate increases outlined in the bill.
Nationally, net metering programs have been contentious, with states like California, New Hampshire, and North Carolina making significant changes to their programs. The reform in Maine is having a chilling effect on solar developers in the state, with some stating they may stop working in Maine or have already done so.
The goal of the legislation is to continue supporting solar energy in a way that does not add to residents' financial hardships. As the debate continues, it remains to be seen how the legislation will impact Maine's solar industry and its clean energy efforts.
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