Florida Republican bill ‘basically erases’ state’s only pro-solar energy policy
In one of America’s sunniest states, a Republican-led Senate recently passed a bill that could hamper the growth of solar energy by removing a popular financial incentive among consumers.
Environmentalists are decrying the measure, arguing that the expansion of rooftop solar is a necessary step in the fight against the climate crisis. The bill was passed in Florida, as another extremely sunny state, California, considered a similar update to its solar policies.
“This is a bill that basically erases the only pro-solar policy in Florida,” said Heaven Campbell, state program director of the non-profit Solar United Neighbors.
The new legislation in Florida would impact a policy known as net metering, through which solar power users who sell excess energy backto the grid in exchange for a billing credit. If signed into law, HB-741 would cut this incentives for rooftop solar owners, and allow utilities to charge fees that would raise the cost of switching to renewable energy.
During the day, solar panels can produce energy beyond what is needed to power a home. Under the current net metering policy, thebilling creditsearned by solar usersare applied to energy used at night or when it’s cloudy. They can also offset costs of installing rooftop solar. The legislation, sponsored by Senator Jennifer Bradley and Representative Lawrence McClure, would allow utility companies to “recover its lost revenues” from customers and, starting 2024, the rate of reimbursement would decline for new solarpanelowners.
Critics of the bill warn that it would halt the growth of solar industry in the state and reinforce Florida’s dependency on fossil fuels. Roughly 90,000 customers or about 1% of all customers across the state have rooftop solar. Florida is the second-largest producer of electricity in the nation after Texas, with 75% of its in-state electricity coming from natural gas.
Records obtained by Miami Herald and Floodlight reveal that Florida Power & Light (FPL) state’s largest power utility, had drafted the bill. FPL’s parent company also made a $10,000 contribution to Sen. Bradley’s political committee, bringing to question the
impartiality of this legislation. FPL’s parent company has said that the contribution was not made “with the expectation of favor”. In a statement to the Guardian, FPL wrote: “We’ve been engaged in constructive dialogue with numerous lawmakers regarding this important issue. Ultimately, lawmakers decide the exact language that will be included in a bill.”
In response to the Miami Herald and Floodlight’s investigation last year, a spokesperson for FPL said the utility does not oppose net metering, but that “we simply believe rooftop solar customers should pay the full cost of this investment”.
Supporters of the bill largely view net-metering as a financial burden to non-solar customers. When introducing the bill on 11 January Bradley argued that under the current policy, people who can’t afford solar panels are subsidizing the cost for those who can.
However, filings by FPL and Gulf Power Company show that 67 and 59% of their net metered customers respectively are low-to-moderate income, with most homeowners financing rooftop solar through loans.
The bill would require customers with solar to “pay the full cost of electric service” and not be “subsidized by the public utility’s general body of ratepayers”. But with such a small number of rooftop solar owners in the state, critics wonder if this is the case of utility companies claiming a monopoly on solar. “It’s becoming more and more clear that FPL views all solar that happens outside of their control as not just lost revenue, but a lost opportunity for ownership,” Campbell said. FPL has 50 solar farms across the state, and is acquiring more land to install 30m solar panels by 2025.
In a statement to the Guardian, FPL wrote: “We believe our customers and our state benefit the most when the largest amount of solar is installed at the lowest cost. Large-scale, universal solar is the fastest, most cost-effective way for us to bring more solar to Florida, while keeping bills low for customers over the long term.”
Another potential revision tonet metering is underway in California, the nation’s leading solar power state. The state utility commission proposed reducing subsidy rates for rooftop solar and adding a monthly charge for new solar owners. Some environmentalists have supported changes to California’s net metering policy, calling them “costeffective and equitable”. As is the case in Florida, the California proposal is backed by the state’s utility companies Pacific Gas and Electric, Southern California Edison and San Diego Gas and Electric. In 2016, following similar netmetering legislation in Nevada, many solar companies ceased their business in the state.