How Twelve States Are Succeeding In Solar Energy Installation: New Report

http://thinkprogress.org/climate/2013/07/23/2341551/how-twelve-states-are-succeeding-in-solar-energy-installation-new-report/

A dozen states are leading the way on solar energy policy — what can the other 38 learn from them to reap the benefits?

Solar power in America is growing quickly, generating nearly half of all new electric generating capacity in the beginning of 2013. The technological efficiency is improving by the day. It has also gotten cheaper, with the price dropping 27 percent last year. Aside from the clean, low-carbon energy it provides — mainly during peak demand hours — 119,000 people currently work in the solar energy industry.

So what is the secret?

Environment America released a report today highlighting the twelve states that have found a successful policy approach to solar power which has enabled them to have installed 85 percent of the nation’s solar electricity capacity. The group, which Environment America termed the “Dazzling Dozen,” is comprised of: Arizona, California, Colorado, Delaware, Hawaii, Maryland, Massachusetts, Nevada, New Jersey, New Mexico, North Carolina, and Vermont. They have the highest per capita solar electricity capacity in U.S. Having lots of sun is not enough — they have pursued good policy to ensure they have a thriving solar industry. Here are a few of the policies that any state can adopt that could supercharge the solar industries of even small Northeastern states:

Clean Energy Standards: Eleven out of the dozen have renewable electricity standards (RESs), while nine have solar carve-outs that ensure that a set percentage of the state’s electricity portfolio comes from solar energy. These policies help create markets for solar energy by ensuring a minimum amount of a utility’s energy portfolio comes from solar.

<bullet points from paragraph>

Net metering: All but one state among this group have strong net metering policies that help prepare burgeoning solar markets. The report notes that in providing full market value for the electricity that solar homes generate, “Net metering ensures that consumers receive reliable and fair compensation for the excess electricity they provide to the grid.”

Interconnection: Ten of the twelve states ensure that the process for linking up a home’s solar installation is quick and easy. Interconnection policies clarify the process by which utilities have to link up new solar installations to the grid. States and local governments can also create laws that protect the rights of homeowners to install solar panels on their own property.

Creative financing options: Most states that do well in per capita solar installations use different methods of making solar affordable for more of their residents. Solar leases and third-party power purchasing agreements essentially allow a company or utility to pay to install the panels, while the consumer either benefits from low-price solar, or slowly pays off the lease payments over time. This allows the property owner to not have to worry about paperwork or maintenance, and economies of scale make this an attractive option to many. Property assessed clean energy (PACE) financing mirrors this no-hassle approach, but allows the consumer to slowly pay back the cost of the installation on their property tax bills.

<more>