Creative Energies: State of the Solar Industry in Utah

By Scott Jones 

 

For the past seven years, I’ve enjoyed a fulfilling career assisting businesses and residents achieve renewable energy independence in Utah’s solar industry.  I’d like to share my experience working in system design and technical sales for Creative Energies while also offering context into the current state of solar affairs in Utah.

Founded in 2000, Creative Energies is a community of adventurous solar craftspeople who care deeply about the environment and the communities in which we live, work and play.  And our mission is to empower people to address climate change. Through the Sierra Club’s Rooftop Solar Partnership, we’ve designed and built hundreds of quality, discounted systems for Utah Sierra Club Chapter members.  A typical system can eliminate the equivalent of 12,000 pounds of CO2 or about 7,600 pounds of coal annually.  Looking back, I know we’ve made a meaningful impact and I’m grateful for the opportunity to have engaged with so many like-minded stewards of our beautiful environment.

With over 300 sunny days per year, Utah is one of the top 6 states in the nation for solar energy production. Advances in equipment efficiency and a steady reduction in equipment costs allowed solar to surpass grid-parity (the point at which solar becomes cheaper than utility power).  However, “going solar” still requires the system to remain connected to the utility grid.  Because of this, folks who invest in solar depend on fair compensation rates for surplus energy they deliver to the grid.  This process is known as “net metering” and, until recently, most utilities including Utah’s monopoly behemoth, Rocky Mountain Power, offered fair compensation for solar energy.  During this time, Utah experienced rapid solar growth and the industry’s future looked brilliant.  

The only constant is change. Explosive solar growth was seen as a threat to the Monopoly Utility business model.  Emboldened by a regime change the day after the 2016 presidential elections, Rocky Mountain Power filed to reduce solar compensation. The gloves have come off since then with numerous attempts by the utility to kill the solar industry through reduced, complicated rate schedules.

In 2017, Rocky Mountain Power put an end to their reasonable net metering policy and implemented a reduced “transitional program” for solar owners.  During this time, the solar industry experienced a dramatic downturn putting nearly 7,000 jobs in jeopardy.   According to Ryan Evans, President of the Utah Solar Energy Association, (USEA,) “the industry is already seeing job losses due to a long battle with RMP that has created a lot of uncertainty and eaten up a lot of resources and capital trying to keep up with the utility’s rate payer funded lawyers”.  Indeed, numerous local and regional solar installation companies have closed shop or filed for bankruptcy.  Ironically, Vivint, one of the nation’s largest solar companies headquartered in Utah, ceased installing residential systems in their own home state.  At the same time, Utah has been experiencing high population growth, resulting in a per-capita decrease in solar installations.

And now Rocky Mountain Power is attempting to kill the solar industry altogether.  The monopoly utility recently filed a nefarious “Export Credit Docket” with the public service commission that would decrease the value of solar by 84%!  

However the basis of RMP’s argument is flawed - based on a study with an intentionally small sample size of just a few dozen customers.  Keep in mind that RMP is proposing a punitively low compensation rate for customer-owned solar while simultaneously charging premium rates for their utility-owned Solar Subscriber Program.

“What Rocky Mountain Power is proposing for the new rate structure would grind our industry to a halt in this state. USEA along with [other stakeholders] is fighting hard against their proposal in hopes of demonstrating to the Public Service Commission the value of rooftop solar- on many different levels,” - Ryan Evans.

Enter Vote Solar, a national advocacy group with technical energy policy expertise and a goal of sustainable solar industry growth.  Vote Solar, along with the help of over 3,300 willing solar homeowners conducted an independent, comprehensive study valuing solar over 15 times greater than RMP’s proposed rate!  

Rooftop solar energy is consumed on-site, right where it’s produced, eliminating hefty transmission losses that occur when centralized power plants push energy over long distances.  Solar has a direct and positive impact on the community by increasing resiliency and energy independence.  Similarly, solar reduces strain on the grid and alleviates the Utility from investing in additional infrastructure required for a growing population.

Since the onset of the COVID-19 pandemic, one of the silver linings in the Salt Lake Valley has been a marked improvement in air quality, undoubtedly due to a reduction in fossil fuel consumption and automobile travel.  During these last several months, having witnessed cleaner air and clearer night skies, the need to embrace a clean energy future and shift away from the extractive energy industries of yesterday has become all the more apparent.

In response to the COVID-19 pandemic, U.S. Senator Chuck Schumer, Democratic Leader, issued the following statement supporting clean energy investments.  “…We should be positioning America to be even more resilient to face the next crisis. Investing in clean energy, clean transportation and clean infrastructure should be a major focus of our recovery… By taking the right steps now, we can emerge from the COVID crisis to a better future.”

In that same light, recent earthquakes that rattled Utah have illustrated the importance of emergency preparedness and increased energy resiliency.  Solar, when coupled with battery storage systems, can do just that, providing perpetual power and autonomy during a grid failure or natural disaster.

So what can you do to help secure a bright future for solar in Utah?  Please consider writing to the Public Service Commission and express your desire to keep solar alive.  Or call Governor Gary Herbert at 801.538.1000 and ask him to oppose RMP’s proposed solar rate changes.

With so much uncertainty looming from a policy perspective, now is a good time to join the clean energy future and install your own rooftop solar system.  Strong Federal Tax incentives remain in place and Utah still offers a state tax credit for investing in renewable energy systems.  That said, both programs have entered a step-down and phase-out period.  If you haven’t previously looked into solar, it makes good sense to leverage these incentives while they’re still available.

Creative Energies has been designing and installing solar for 20 years.  We would be honored to help Utah Chapter members realize energy independence and contribute to our shared clean energy future. Please visit www.sierraclubsolar.org to learn more.

Scott Jones is credentialed by the North American Board of Certified Energy Practitioners (NABCEP) in PV Technical Sales.  He sits on the Utah Solar Energy Association (USEA) Board of Directors and is an outspoken policy advocate and Utah Chapter Sierra Club member.