Legislation is under consideration at the Capitol (AB 493/SB 559) that would allow for third party development of solar generating facilities without having to submit to standard utility regulation. These proposals are unfair to utilities, and potentially harmful and costly to consumers and utility investors alike.

Under these so called “community solar” bills, developers could build solar projects exempt from public utility regulation. However, the incumbent utilities would be required to distribute the electricity, manage the billing and credit system, and purchase excess high price power from these projects. These costs would be passed on to non-participating utility customers.

These projects would likely displace a portion of the utility scale solar projects planned or currently being permitted for construction in the near future. Since utility scale solar projects are, without question, the lowest cost means of generating solar electricity, this unfair competition would be harmful to consumers because high cost “community solar” would displace a portion of lower cost utility scale solar generation. This would also adversely impact utility investors.

Some have suggested that “community solar” projects would be a form of free market competition. The reality is that under the bills, they benefit from a unique regulatory framework with guaranteed subsidies and requirements that utilities provide the distribution network, along with having to purchase high priced excess power and manage the billing system. The bottom line is that “community solar” is only viable with subsidies from incumbent utilities.

Experience in other states has shown that “community solar” has proven to be a costly mistake. In neighboring Minnesota, “community solar” pricing is set at a rate as much as 100 percent higher than utility scale solar.

Please take a moment to contact your State Senator and Representative and urge them to vote against these bills. Go to WUIINC.org and click on “Find My Legislators” and enter your street address on the top line. You can then click on their email addresses and send them a message.