By John Tynan, special to Statehouse Report | Conservation Voters of South Carolina and a coalition of over 25 solar industry groups, conservation organizations, and clean energy advocates in January launched a “100 Day Clean Energy” campaign urging state lawmakers to pass legislation to inject competition into South Carolina’s energy markets in the first 100 days of 2019.
We were driven by the urgency to protect the billions of dollars of private investment in large-scale solar projects which need certainty needed to bring them to completion and also by the threat of losing thousands of solar jobs if current net metering programs were allowed to expire in March.
We’re now at the 60-day mark, and, while we’re not over the finish line yet, I’m optimistic about the progress we’ve made with the recent compromise hammered out by the unanimous (110-0) passage of the Energy Freedom Act (H.3659) in the S.C. House of Representatives.
Make no mistake. A unanimous vote speaks volumes about true compromise. Passage of the Energy Freedom Act is the result of thoughtful work led by House staff and key Labor Commerce and Industry Committee members as they sought buy-in from all interested parties – the solar industry, the utilities and conservation organizations. From the vote on the House floor, it looks like they succeeded.
Several provisions with positive implications for the state’s clean energy industry were included in the compromise, including the elimination of rooftop net metering and solar leasing caps. Eliminating these market-killing caps is a solid step in the right direction because it makes solar an option for more South Carolinians and gives solar owners fair credit for energy generated on their rooftops.
But the compromise deferred long-term resolution of rooftop solar rate structures to the state Public Service Commission (PSC), striking a balance that addresses the most pressing issues while outlining a long-term pathway for continued solar growth and individual energy choice.
For large-scale solar projects, the Energy Freedom Act compromise would ensure that independent power producers who can create clean energy at or below the price of utility power can secure at least 10-year contracts for these low-cost power options. And, similar to the rooftop solar compromise, it defers the complex, long-term questions regarding large-scale solar to the PSC.
The certainty of a minimum contract length cannot be understated. It’s a requirement for stabilizing discussions between independent power providers and the utility monopolies as well as for landowners and developers who want to build cost-efficient solar installations that reduce energy costs for ratepayers.
We cannot advance a clean energy future without sound principles and processes for energy planning and procurement. While the compromise language does not contain the level of utility accountability that we sought, it does establish greater utility transparency and stakeholder involvement in the planning and procurement processes for new generation. In the wake of the V.C. Summer power plant failure, every step towards transparency, accountability and long-term planning in the energy generation space should be celebrated.
The compromise House bill contains a number of other significant provisions: consumer protections, a voluntary program to allow corporate and industrial customers to directly contract for clean energy, and community solar programs to ensure all ratepayers – regardless of income – can access the benefits of solar.
With all of these aspects, the compromise bill outlines an overarching goal, but relies on the PSC to work with stakeholders to craft the long-term, durable solutions that are greatly needed.
On the whole, the Energy Freedom Act advances key policies that will expand solar access for all, increase energy market competition, and move South Carolina closer to the clean energy future it deserves. Thanks is due to the collaborative leadership of the House and particularly S.C. Reps. Peter McCoy (R-Charleston), Mike Forrester (R-Spartanburg), Bill Sandifer (R-Oconee), Russell Ott (D-Calhoun), Nathan Ballentine (R-Lexington), and Gary Clary (R-Pickens).
We hope the Senate will recognize the unanimous approval of H.3659 shows that this bill is a true compromise and a path forward. As the Senate reviews the bill, the clock is ticking on 3,000 solar jobs in our state, greater access to solar across the state and relief for ratepayers.
As we approach the March 15 expiration of the solar caps and the April 10 end to the 100 Day Agenda campaign, we urge all parties to embrace this compromise.
John Tynan is executive director of the Conservation Voters of South Carolina and is based in Columbia. More: CVSC. Have a comment? Send to: feedback@statehousereport.com.
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