‘Huge, huge decision’: Solar advocates laud veto to proposed net metering changes

Solar advocates are celebrating a win for consumers and the industry, they say, after Gov. Ron DeSantis vetoed a bill that sought to phase out financial incentives for rooftop solar.

“(The veto) protects thousands of jobs in the state and it protects consumers’ rights against the monopoly utilities that were trying to pull an end around,” said Joe Magro of Blue Ocean Solar Strategies in Tarpon Springs, who was among the dozens who traveled to Tallahassee during the legislative session to ask lawmakers to oppose the bill.

The net metering bill seemed all-but-certain to become reality after sailing through the Legislature despite fervent opposition from solar users, contractors and environmental groups.

Those who were against the bill can breathe a sigh of relief, if not only for the moment, that the legal mechanism to allow rooftop solar users to sell excess energy they produce back to the grid at the retail rate will remain intact, rather than be phased out to the lower wholesale rate.

A "huge, huge" decision in favor of Florida consumers opting for solar

That sell-back provision is a critical financial incentive by letting solar users defray installation costs.

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“It’s a huge, huge decision, particularly for the industry,” said Stephen A. Smith, executive director of the Southern Alliance for Clean Energy. “It would have set the industry back probably a decade.”

In his veto letter, DeSantis said the bill would have let utilities to recover costs associated with serving rooftop solar users, but those estimates were “speculative and would be borne by all customers.”

The governor also cited inflation as a reason not to support the bill, which was pushed by the state’s largest utility, Juno Beach-based Florida Power & Light. The utility has said it is not against rooftop solar, but believes those customers are subsidized by non-solar customers.

“The fact that he took on one of the most powerful interests in the state, Florida Power & Light, I think it’s more than scoring a few political points on inflation. This is a big slap,” Smith said.

Justin Vandenbroeck, president of Florida Solar Energy Industries Association, said DeSantis “understands the value of solar as an economic engine and a powerful tool for energy independence.”

“His decision to veto this bill will allow our industry to continue growing and give more homeowners in our state the chance to lower their electric bills with solar,” he said.

Florida law allows solar users to recover costs by selling excess power

Solar advocates say the decision safeguards a homeowner’s choice by being able to leverage the excess energy they sell, plus the overall lower amount of energy consumed from the grid, to help pay off their solar systems.

It’s not just homeowners that benefit, but local governments and other entities that have invested in solar systems. Broward County has installed rooftop solar on nine of its buildings as of 2021, offsetting about half of the energy that would otherwise be drawn from the grid.

“We have made significant investments on some of our newer buildings,” said Broward Mayor Michael Udine, who also appeared before lawmakers to oppose the bill. “This is a way to provide those financial benefits for taxpayers who ultimately pay these bills.”

Non-solar customers, Magro said, have no recourse when the Florida Public Service Commission approves a utility’s request to increase rates due to rising costs like natural gas, which adds a level of uncertainty into a homeowner’s monthly electricity bills. Such an increase for FPL's fuel costs was approved by the PSC in December, and utilities are monitoring the volatile market that is likely to result in another monthly bill increase for customers.

That unpredictability is being particularly felt in the Panhandle, said Heaven Campbell, Florida director of Solar United Neighbors. That’s where customers of Gulf Power, which was absorbed by FPL, have protested their higher power bills that went into effect in January.

“It’s caused no overstatement of crisis,” Campbell said.

Key question in Florida net-metering debate: Who owns the sun?

Lisa Edgar, who sat on the Public Service Commission when the state’s net metering rules were first written in 2008 and spoke in favor of the bill before lawmakers, said Thursday she still thinks the bill would have saved non-solar customers money.

“I still believe that adjusting the net metering formula is a good policy,” she said. “I hope there are more discussions in the future.”

One thing some advocates hope for is a study, which some lawmakers had called for during debate over the bill, that shows the impacts of rooftop solar on the grid.

“Are we going to eventually start supporting our industry or let monopoly utilities continue to beat up on this extremely robust economic force in our state?” Campbell said. “Floridians want more, not less, solar and they want equitable access to solar.”

If history is any indication, it’s unlikely that the fight over net metering is over. Utilities backed the failed constitutional amendment in 2016 that, in part, aimed to codify that “consumers who do not choose to install solar are not required to subsidize the costs of backup power and electric grid access to those who do.”

“They’re not going to give up,” Smith said. “This is a huge setback for them. They’re monopolies. They think they own the sun down there.”

Hannah Morse covers consumer issues for The Palm Beach Post. Drop a line at hmorse@pbpost.com, call 561-820-4833 or follow her on Twitter @mannahhorse.

This article originally appeared on Palm Beach Post: Solar advocates cheer Ron DeSantis veto of Florida net metering bill