Legislators built a solar program for apartment dwellers. The SCC gutted it.
The State Corporation Commission recently finalized regulations for the Multifamily Shared Solar Program, created by the General Assembly to give residents of apartment buildings and condominiums the ability to use solar energy from panels installed on their buildings. But in implementing the program, the SCC also made sure it can never be used.
Dominion Energy is largely to blame here, as it so often is whenever customer-sited solar encounters barriers. The utility proposed to lard up the program with fees, none of them allowed by the law. But it’s the SCC’s agreement with Dominion that’s the problem—and not just for people in apartment buildings who want solar, but for the future of any solar in Virginia that isn’t utility-owned.
2020′s Solar Freedom law set out to make it easier for residents and businesses to install solar onsite. At the heart of the law is net metering, the program that credits solar owners for excess electricity fed back into the grid. Net metering makes solar affordable for customers, so giving more people access to net metering means more private investment dollars, more jobs and a more resilient power grid.
The multifamily shared solar provision is meant to extend net metering-like benefits to residents of apartment buildings and condominiums, who don’t own their building and its roof themselves. The law allows the building owner—a landlord or condo association—to have solar panels installed on the property, and let residents buy the electricity produced. Residents who sign up for solar are to be credited for the solar electricity at the utility’s retail rate, giving the residents a benefit equivalent to net metering. The only added cost the utility is allowed to impose is an administrative fee.
“Administrative fee.” You probably think you know what that term means: a fee to cover the cost of administering the program because, duh, what else could it mean? It would pay for someone to do paperwork or to tweak the billing software. It couldn’t amount to more than a buck or two for a customer in the program.
You think that way because you are not a Dominion lawyer. With no definition of “administrative fee” in the law and no dollar limit, Dominion’s lawyers went to work shoveling every conceivable expense they could come up with into the humble little fee until it resembles one of those memes of a kitten the size of Godzilla. Now the administrative fee includes the utility’s transmission and distribution costs; standby generation; balancing costs; “non-bypassable charges”; even “banking, balancing and storing fees related to the utility’s processing and handling of the excess bill credits.”
Then the SCC, faced with this long list of fees that have nothing to do with program administration and aren’t authorized in the law, closed its eyes and signed on.
The Virginia Mercury is a new, nonpartisan, nonprofit news organization covering Virginia government and policy
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