NET METERING IN CA AND SD

NewEnergyNews has suddenly conceived a great affection for the Rapid City (South Dakota) Journal. No, it’s not the revenge of Valentine’s Day. It is only human nature to like people who are smart enough to agree with you. This Journal editorial attacks national Congressional inaction on the New Energy incentives and approves of South Dakota Governor Mike Rounds’ efforts to get his state’s legislature to incentivize the development of his state’s huge wind energy potential with a Renewable Electricity Standard (RES) and tax breaks for wind developers.

Then the Journal ups the ante by calling for net metering laws in S.D.

Net metering allows owners of residential solar or wind energy systems to get credit for all or a portion of the electricity their system generates and puts onto the grid, less the power they consume.

In California, Assemblyman Jared Huffman is also trying to push through a net metering law requiring the state’s utilities to credit individuals for excess solar and other New Energy produced by residential, business or farm systems.

The thought in both states is that net metering gives system owners a stake in New Energy production, financial power likely to incentivize involvement.

The Journal: “…no matter how it is implemented or administered, net metering is good for the environment. Ultimately, that’s good for all of us.”

S.D. is a blank slate. Californians are upping the ante in their deal with utilities for their power production. (click to enlarge)

Net metering good energy policy
Editorial, February 11, 2008 (Rapid City Journal)
and
Huffman Announces “Oughta Be A Law” Winner(s) at SPG Solar

WHO
South Dakota Governor Mike Rounds; California Assemblyman Jared Huffman; winners of the “Oughta Be A Law” contest: Bruce Gustin (Petaluma), Jim Lammers (San Anselmo), Steve Kunkel (Fairfax), Jared Babula (Sausalito), George Davidson (Larkspur), Peter Berkhout (San Rafael), Tom Faust (Corte Madera), Ray Gallian (Sonoma)

Where the action is. (click to enlarge

WHAT
- Governor Rounds recently urged the South Dakota state legislators to establish a state RES and create a tax incentives favorable to the state’s huge wind resource.
- The Journal applauded Rounds for these initiatives and called for the establishment of net metering laws.
- Assemblyman Huffman will introduce legislation in California for net metering as suggested by a group of constituents, winners of Huffman’s annual “Oughta Be A Law” contest.

WHEN
- Rounds would have S.D. obtain 10% of its power from New Energy sources by 2015.
- S. D.’s legislature rejected net metering in 2003, failing to boost wind energy development.
- Huffman’s California net metering proposal is the 2008 result of an annual competition to generate new legislation.

WHERE
- Many states including Montana, Nebraska, North Dakota, Iowa and Wyoming have net metering laws.
- Huffman announced his net metering legislation at the headquarters of SPG Solar in Novato, CA.

Favorable grid policies make consumers into producing partners. (click to enlarge)

WHY
- The specific regulations that govern net metering vary. Some allow consumers to profit from the energy they generate. Most allow consumers to wind their meters if not to zero at least far back.
- SPG Solar is California’s largest solar producer.
- Net metering would apply to energy put back on the grid from any New Energy (residential solar, small wind, small scale geothermal, fuel cells, etc.)
- Huffman’s bill calls for the California Public Utilities Commission to determine compensation.
- Both Huffman and the Journal point out that net metering would help the state reach RES goals.
- The Journal points out that net metering would likely motivate S.D.’s farmers and ranchers to invest in New Energy.

The ultimate objective. (click to enlarge)

QUOTES
- Journal: “South Dakota needs a wind energy policy that is as robust as its winds.”
- Journal: “Ideally, in windy South Dakota, the owner of a small wind turbine would have his or her electricity meter spinning backwards on many days.”
- Journal: “Net metering gives some financial “power” back to consumers by encouraging individual investment in renewable energy technologies. We think it should be available to consumers here.”