Innovative solar policy could help more Iowans save money
As solar technology has evolved and prices decrease, more Iowa homeowners, farmers and businesses have been able to harness the power of the sun to control their electric bill. However, some hurdles still exist for solar adoption across the state.
As interim president of the Iowa Solar Energy Trade Association and president and co-founder of 1 Source Solar, I’ve witnessed policy challenges firsthand that make it hard for all Iowa ratepayers to have access to solar energy.
Most Iowans are likely unaware that the Iowa Utilities Board, the governing body of utilities in Iowa, is currently undergoing a review of utility ratemaking in Iowa that could impact some of these policies governing customer-owned solar energy. Through a series of stakeholder input sessions, the IUB review is looking at a variety of utility practices and how they impact affordability, accessibility, reliability, and safety.
Best practices in other states showcase how good public policy can increase renewable energy access to more Iowa ratepayers at more affordable rates, while helping to increase grid resiliency and lower emissions. These mechanisms include, but are not limited to, virtual net metering, aggregated net metering, and virtual power plants.
These mechanisms can also help utilities save money and hedge against rate increases for all ratepayers. A recent report by the Brattle Group found that utilities could save up to $35 billion a year if they invested in smaller-scale energy projects like home batteries and rooftop solar panels that can be built more easily and quickly.
Minnesota, our neighbor to the north, is a national leader in community solar. Xcel Energy runs the nation’s most extensive community solar program, which started 10 years ago. Minnesota has over 30,000 subscribers sharing over 800 megawatts of capacity. On average, most community solar subscribers save 5% to 10% off traditional electricity costs. The program recently underwent some updates to better meet the existing needs of all stakeholders.
Virtual net metering, also known as shared or group net metering, is a billing arrangement that allows multiple customers to share the benefits of a single, collectively-owned renewable energy system. Virtual net metering is especially useful in situations where individual consumers may not have suitable locations for renewable energy installations but still want to invest in, and realize cost savings from, solar or wind energy. The electricity generated is measured, and the total energy output is credited to the utility bill of each participating customer.
Increasing more distributed energy generation points within our electric grid also enhances energy resilience and independence by reducing dependency on centralized power grids, helping to mitigate the impact of grid failures or disruptions. It also promotes greater energy efficiency as energy is generated closer to the point of use, reducing transmission losses and cost associated with long-distance electricity transport. This, in turn, can lead to cost savings for consumers.
Those of us at the Iowa solar association thank the IUB for facilitating these important conversations. Together, we can work to craft an energy future for Iowa that benefits all stakeholders and enhances our energy grid’s resiliency and cost-effectiveness for Iowans.
Todd Miller is interim president of the Iowa Solar Energy Association and president and co-founder of 1 Source Solar.
This article originally appeared on Des Moines Register: Innovative solar policy could mean more Iowans save money
