Province’s new Net Metering rules fairer to all

Previous program couldn’t be sustained, says Mike Marsh.

Saskpower recently announced an updated

Net Metering program effective Nov. 1, which allows customers to generate their own power and connect to the power grid. The new program is sustainable and more fair to all power customers in Saskatchewan.

We recognize that our province is suitable for solar power generation, and that some Saskpower customers want the opportunity to self-generate. There will always be the opportunity for customers to generate their own power using solar if they so desire, but the cost to do so must be considered.

Saskpower’s previous Net Metering program offered a rebate for solar installations and premium credits for surplus power — and was among the most generous programs in the country. The past two years saw unprecedented growth in the program in part because of its generosity and more recently, as a result of federal subsidies on larger net metering projects. 16 megawatts (MW) were added during the last year alone, causing the program to hit its cap two years earlier than expected, while more than 35 MW of net metering capacity has been added since the program began in 2008.

Despite arguments to the contrary, this additional capacity DOES come at a cost. Net metering customers put power on the grid, but they also draw power from the grid when solar power is not available (at night, when it’s cloudy, etc.). These customers are still reliant on Saskpower’s power lines and other infrastructure 100 per cent of the time — either to add power to the grid or to use grid power when needed. But because of the former program’s one-to-one credit for excess power, they don’t pay the same fixed costs that customers who do not have solar panels pay in order to support the grid. This avoided cost is picked up by customers without solar power.

If the previous net metering program was to continue, and the same growth in the program

Make no mistake, adding cleaner energy to our system is a priority for Saskpower.

was realized, the financial impact on Saskpower would be $54 million per year by 2025 — not including the rebate. This would translate to a rate increase of about seven per cent for our residential and farm customers who do not have solar panels. Obviously, this is not a sustainable business model, and is the reason many other utilities in Canada and the United States have revised their programs during the past few years.

The new program strikes the right balance. It provides certainty and clarity for our customers who want to net meter, while reducing the financial impacts on customers who do not have solar panels. Net metering customers will still receive the retail rate for power they generate and consume, while being credited for excess power at 7.5 cents per kwh. The new program has no rebate, no cap or predefined contract length. In fact, under the new Net Metering program, Saskatchewan net metering customers will continue to enjoy the shortest payback period in all of Canada.

Make no mistake, adding cleaner energy to our system is a priority for Saskpower. We’ve committed to reducing greenhouse gas emissions by 40 per cent from 2005 levels by 2030. And we will achieve this target. Most of the renewable generation that will help us reach our 2030 goal will be from large, utility-scale projects, because they are simply the most efficient and cost-effective way to add renewable generation to our province’s electrical grid, which helps us keep rates as low as possible. However, rooftop solar will continue to be a part of the mix as it has been for several years.

We look forward to continued conversation and engagement with our industry partners in the years to come.

Mike Marsh is president and CEO of Saskpower.