Las Vegas Sun

April 19, 2024

Solar bill close to landing on Sandoval’s desk

The solar compromise plan is one step away from landing on Gov. Brian Sandoval’s desk.

The Assembly passed the measure, SB374, by a 41-1 vote — displaying a strong harmony after months of conflict over raising the solar cap. Democratic Assemblywoman Maggie Carlton opposed it. The bill goes to the Senate for a concurrence vote before it goes to Sandoval.

"We struck a very good balance between the solar industry and NV Energy," Randy Kirner, GOP chairman of the Assembly's Commerce Labor and Energy Committee, said.

Preceding the vote were ad campaigns, rallies, closed-door meetings and thousands of emails from solar advocates calling for action. The solar industry and NV Energy, the state’s largest power utility, battled over how many consumers could provide renewable energy to their homes and the power grid with panels they lease from companies like SolarCity and Sunrun. There wasn’t one vote or public debate on the measure until May 16. Sandoval intervened last weekend to address the issue. By Monday, both sides had come to an agreement — ending months of conflict.

The compromise legislation would change the current participation limits on the policy and shift the regulation of the policy to the Public Utilities Commission. The proposal would require the commission to study adding a fee for rooftop solar customers and investigate a longstanding participation limit for rooftop solar customers by Dec 31. If the PUC fails to meet that deadline, the solar industry would be able to continue operating as usual and would be able to provide services to an unlimited number of customers.

The policy, known as net metering, currently allows participation of up to 3 percent of NV Energy’s peak generating capacity, which is around 7,500 megawatts, or the amount of energy required to power 9,000 Super Walmarts. Solar customers currently receive a 6-cent credit for the power they supply to the grid with their solar panels. The solar industry, which supplies more than 6,000 jobs in the state, says the state is nearing its threshold and will stop if lawmakers don’t do something to increase the cap.

NV Energy characterizes the credit as a subsidy supported by nonsolar customers. The utility says for every percent the cap increases, ratepayers will see an increased cost of at least $8 million.

The proposal will change the participation requirements from the 3 percent cap to a temporary limit of 235 megawatts worth of consumer participation in the utility’s net metering program until the PUC hashes out its own solution in December. The solar industry currently has 145.6 megawatts worth of participation. The current cap equals around 225 megawatts. The legislation is likely to provide space for the industry to grow and not max out on megawatts before the PUC makes a final ruling in December on the matter.

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