Wednesday, November 11, 2009

Connecticut Energy Lip Service


If the electric meter in the photo were spinning backward, it would mean that the home it serves is using photovoltaic panels to push power back into the grid. In Connecticut, not the least progressive state in the union concerning renewable energy, the power is resold to the utility at retail, or exactly the cost homeowners are paying for their power. A corollary of the "Net Metering" system is that Connecticut Light and Power makes nothing on those watts contributed by photovoltaic-equipped homeowners: retail in, retail out. If there were enough of those homes hooked to the grid, the utility would become essentially a grid-maintenance corporation and the turbines at Millstone Nucular Power Plant would be idle-- except maybe at night, when demand is low and the solar panels of Connecticut are running on moonlight. Small danger of that scenario, you say? You're probably right. But like Dylan's 115th Dream, it's a nice one to have now and then.
If that meter were located in California, things would be a little different. The power flowing out through it from the residential photovoltaic array would be metered at an increased rate, higher than that charged for incoming power. The owner of the panels would be making a profit over and above the exchange of watts. And the obvious incentive to upsize the system and supply extra watts to the grid at that "Tariff-enhanced" rate is clear to anyone. Photovoltaic installation companies in California will now find it easier to "upsell" larger systems to homeowners, systems that will cost tens of thousands of dollars more than the basic entry level equipment, and those homeowners who commit those extra sums of money to renewable energy will be rewarded by faster payback on their investments, and real profits after their installation costs have been recouped.
This US Dept of Energy link explains the new tariff, applicable both to residential and commercial renewable installations up to 1.5 megawatts (a typical residential installation in CT is about 3 thousand watts) at differing tariff rates, making it attractive to invest sums starting around $40k and rising to staggering sums (for me, anyway) for home solar installations. Solar "thermal", or hot water and heating, installations are already rewarded by California's wonderful sunny climate, enabling folks like us to enjoy nearly free hot water and heating year-round.
The Bad News? Here in Connecticut we do have net metering, as we said. But the Connecticut Clean Energy Fund, which administers and disburses the energy rebates that subsidize solar installations in the state, is currently "under financial review," meaning "not disbursing new rebates." I am advised by a CCEF representative that the next disbursements are projected for July of 2010, and that rebates for commercial solar installations have been temporarily suspended. Why? The funds are developed from surcharges and contributions on consumers' power bills, and CL&P has been short of funds lately since Attorney General Richard Blumenthal denied their request for a rate hike. So it appears that CL&P is economizing their way through this tough period by shorting, among other things, the Clean Energy Rebate program. With the rebates working, a photovoltaic system still costs quite a bit ($30,000 and up), but with no rebates the cost of the systems almost doubles.
Decreasing equipment costs are helping contractors to bring the price of system installations down in the last year, but those gains still don't put renewable energy within the reach of folks with modest incomes and modest borrowable equity in their homes. And the tally of renewable solar systems installed under the rebate program since june of 2009 totals just under 4 megawatts. Four megawatts is enough to power my house for about a year.
So--- we progress, but slowly. And we progress with much talk and belated action. Nothing wrong with talk, but it's disappointing when we see the tiny advances we make over time. All in all, we lack what is called the "political will," or the consent of the people, in other words, to move ahead on these issues.

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