Tag Archives: Recs

Smug About Your Solar Roof? Not So Fast

By Severin Borenstein (Professor, UC Berkeley), The Los Angeles Times

If you’ve installed solar panels on your roof and feel aglow with environmental virtue, you may be in for a rude awakening. There’s a good chance someone else has purchased your halo and is wearing it right now.

In most states (including California), rooftop solar panels earn Renewable Energy Certificates, which quantify how much clean electricity they produce. But if panels are leased or installed under a power purchase agreement, it’s the “third-party owner” — not the homeowner — who gets those certificates. Most then turn around and sell the RECs, a process that magically turns brown electrons green.

Here’s how it works: Joe’s Solar puts panels on your roof that produce 7,500 kilowatt-hours a year, and Joe sells you the electricity under a power purchase agreement. Because Joe still owns the panels, he gets credit — in the form of RECs — for that renewable electricity. Meanwhile, Bob’s all-fossil utility wants to “green up” so it buys RECs from Joe. That allows Bob to relabel 7,500 kilowatt-hours of his coal- or gas-fired power generation as “renewable energy.”

It may sound strange, but a market to sell or trade RECs can be extremely useful. California, for instance, has a mandate for its utilities to generate 33% renewable power by 2020, but some parts of the state have little sun or wind resources. Still, utilities in sunny or windy spots can produce more than their requirement and then sell the extra RECs to areas where it would be much more costly, or impossible, to hit the target. Thus, the RECs market allows a utility in one region to finance additional green energy production in another where it is cheaper, supporting more carbon reduction at a lower cost to consumers.

That seems sensible enough. But something’s wrong if the buying and selling utility companies both claim that green power as their own. And that’s essentially what’s been going on with solar rooftops.

Read full op-ed in the Los Angeles Times

 

Why Rooftop Solar Advocates Are Upset About California’s Clean-Energy Law

By Ivan Penn, The Los Angeles Times

California’s aggressive push to increase renewable energy production comes with a catch for people with solar panels on the roof: You don’t count.

If a home or business has a rooftop solar system, most of the wattage isn’t included in the ambitious requirement to generate half of the state’s electricity from renewable sources such as solar and wind by 2030, part of legislation signed in October by Gov. Jerry Brown.

That means rooftop solar owners are missing out on a potentially lucrative subsidy that is paid to utilities and developers of big power projects. It also means that utility ratepayers could end up overpaying for clean electricity to meet the state’s benchmark because lawmakers, by excluding rooftop solar, left out the source of more than a third of the state’s solar power.

Owners of rooftop solar systems and their advocates aren’t happy about the policy…The rooftop solar industry and consumer advocates say opposition to including rooftop solar in California’s renewable energy mandate came from large developers that feared competition for subsidies as well as unions that were upset because rooftop solar installers typically aren’t members.

Read full article in the Los Angeles Times

The Solar Industry Stands Divided Over California’s 50% Renewable Energy Target

By Julia Pyper, Greentech Media

These days, it’s rare to see rooftop solar installers and investor-owned utilities aligned on state policy issues. But in California, the two industry groups are both lobbying for behind-the-meter solar to count toward the state’s expanded renewable portfolio standard.

SB 350, the “Clean Energy and Pollution Reduction Act of 2015,” seeks to increase the state’s renewable energy target from 33 percent by 2020, to 50 percent by 2030. It also calls for cutting petroleum use in the transportation sector by half, and doubling the energy efficiency of buildings over the next 15 years. The bill has already passed the California Senate, and is now making its way through the Assembly.

One of the issues both utilities and solar installers have raised is that distributed solar should not be treated any differently than utility-scale solar as the state crafts the rules around meeting the new 50 percent target. As the RPS stands today, California utilities are only required to buy energy and renewable energy credits (RECs) from utility-scale solar plants. California is the only state in the country that does not count distributed solar toward the state’s RPS goal, either through a distributed generation carve-out or by generating RECs.

In letters to the Assembly Committee on Utilities and Commerce, Southern California Edison and PG&E argue that “state policy should not pick technology winners and losers, favoring only utility-scale renewables,” and call on the legislature to “expand the scope of eligible renewable resources to include distributed generation facilities such as rooftop solar that the state already acknowledges are renewable, yet do not count toward the RPS goal.” This change would give utilities more ways to meet the lofty 50 percent RPS goal. It would also give them a potentially more affordable way to meet the goal by leveraging existing and future private investment toward meeting the RPS, rather than necessarily having to contract for new large-scale projects using ratepayer dollars.

The issue has made strange bedfellows of power companies and rooftop solar installers, which have clashed in several states over the future of net energy metering. Meanwhile, it has pitted rooftop solar companies against large-scale solar installers, which are actively lobbying against the RPS change.

Read full article from Greentech Media

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Critics: Marin Clean Energy not so clean and green

By Richard Halstead, Marin Independent Journal

A union representing Pacific Gas and Electric Co. workers and a San Francisco consumer group are taking aim at the common use of energy credits by groups including Marin Clean Energy. They’re pushing an initiative in San Francisco and new state legislation designed to curb such practices. Their contention: Marin Clean Energy and other purchasers of those credits, such as the city of Palo Alto, and the Sacramento Municipal Utility District, are using paper certificates to “greenwash” their energy. At issue is something known as an “unbundled, renewable energy certificate”—a credit that, when purchased, allows the buyer to legally claim ownership of 1 Mwh of renewable electricity. It has been “unbundled” from the actual renewable electricity that was generated.

The International Brotherhood of Electrical Workers, Local 1245, which represents PG&E’s electrical workers, is collecting signatures for a ballot measure that would bar San Francisco from promoting its electricity as clean or green if it uses unbundled RECs.  A second offensive is being mounted against the use of unbundled RECs in the state Legislature. Assemblyman Phil Ting, D-San Francisco, has introduced AB 1110, which would prohibit an adjustment in the calculation of emissions of greenhouse gases through the application of unbundled RECs. The legislation is sponsored by The Utility Reform Network, a consumer advocacy organization based in San Francisco.

Read full article in the Marin Independent Journal