For years,
Nevada taxpayers have spent millions subsidizing homeowners who install rooftop
solar panels – but that’s about to end.
In a
controversial decision, the state is phasing out that subsidy over the next 12
years, a move being met with protests, lawsuits and even a failed bid to put
the issue before voters. Last week, Nevada's Supreme Court ruled that a
referendum from solar activists challenging the decision would not be allowed
on the November ballot.
The changes
and challenges are now being watched carefully by other states and the solar
industry as a whole – as it could signal a shift away from government support
for solar energy.
Until now,
Nevada homeowners subsidized roughly 17,000 customers with solar panels, to the
tune of about $16 million every year. This was done under a program known as
net-metering, which reimbursed residential energy customers for excess power
generated by their rooftop panels.
Paul Thomsen,
chairman of Nevada's Public Utility Commission, said the perk was unfair,
because it meant homeowners who didn't have solar panels were subsidizing those
who did.
"As the
rooftop solar industry has gotten larger and larger, we've seen this subsidy
grow," Thomsen said. "What started as a legislative policy to
kickstart the industry, now 18 years later, it's time for that industry to
stand on its own two feet."
But customers
are blasting the state's decision to phase out net-metering, as well as a
decision to raise monthly fixed fees for solar customers, from $12.75 to
$38.51.
"The PUC
and Governor Brian Sandoval have backstabbed us, and have gone against the
little person," Nevada solar customer Eric Heine said.
Many
homeowners say without that perk, they wouldn't have shelled out thousands of
dollars to go solar, and blame the Nevada Public Utility Commission for what
they call a "bait and switch."
Activists are
fighting the new policy in the courts, a legal battle other sunny states like
Arizona and California are watching closely.
Meanwhile,
many solar companies are down-sizing -- and several, including Solar City, have
stopped doing business in the state, eliminating 550 jobs.
Solar
activists say they're hopeful that customers who went solar before the PUC
decision will be able to keep the rates they signed up for. A task force
created by Republican Gov. Brian Sandoval has recommended the rates be
grandfathered in for customers who submitted applications before 2016, and
continue for 20 years.
That
recommendation is expected to go before the Nevada state legislature early next
year.
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