POWERING DOWN
Saskatoon may follow province’s lead on solar
City staff are recommending Saskatoon follow the province’s lead on lowering energy credits for customers generating solar power.
A report prepared for Monday’s meeting of council’s environment, utilities and corporate services committee says the cost of the status quo would “reduce the utility’s ability to fund electrical grid renewal projects,” even as environmental and solar advocacy groups urge the city to maintain the current rate.
The province’s net metering program allows customers with solar panels to receive credit for energy they produce.
The program was nearly a victim of its own success. Saskpower suddenly ended net metering when it reached its energy cap years ahead of schedule, citing potential costs of up to $25 million by 2025.
Later, the Crown corporation announced it would continue the program, but would reduce the credit offered for solar power by roughly half and end a 20-per-cent rebate on solar panel purchases.
Saskatoon Light and Power buys electricity from Saskpower and typically follows the province’s lead on policy.
There are 133 customers using net metering within its coverage area who have been unaffected by Saskpower’s changes.
Trevor Bell, director of the utility provider, says that even Saskpower’s new rate of $0.075/kwh is “generous.”
“It’s a lot more than what it costs us to actually generate power,” said Bell.
The utility provider estimates the 133 current clients, who would be grandfathered under the existing rate until 2029 if the program were to end, would still cost the city $30,800 each year.
If the status quo were kept, it would cost $58,300 per year, not including new potential customers.
“There’s an imbalance there that is not sustainable if there are too many customers,” Bell said.
Peter Prebble, a board member of the Saskatchewan Environmental Society and a founding member of its Solar Co-op, urges city council to keep the status quo.
He says aligning rates with Saskpower’s would increase the payback period for customers who have already invested and will discourage more from signing on.
Currently, the program has been rapidly growing at a rate of 50 per cent each year. He also said the decision should be weighed in the larger context of climate change driven by human emissions.
“There’s naturally a logic to that. But the changes Saskpower has made to the net metering program are very unfortunate, and they’re going to set the solar industry in Saskatchewan back in a major way,” Prebble said.
“What the City of Saskatoon should do is turn around and ask Saskpower to reverse its policy.”
Mayor Charlie Clark has been an advocate for solar power partnerships, which are aligned with Saskatoon’s low emissions goals.
When contacted, his chief of staff, Michelle Beveridge, said he would decline to comment until the public debate on Monday.
City council is currently weighing reviewing those goals to remove specific language around initiatives like solar panel installations.
If the committee recommends aligning the program with Saskpower’s, city council will consider the issue on Nov. 18, the earliest date the program could stop taking applications.