OLD ENERGY BLOCKING THE SOUTHERN SUN

Big Energy Firms Blocking Solar Power in South
Matthew Cardinale, March 31, 2010 (The Atlanta Progressive News)

"As citizens, businesses and non-profit organisations seek to transition to cleaner power sources like solar and wind, some big energy firms whose business models rely on polluting sources are standing in the way.

"…Georgia Power has lobbied for…[policies that make it difficult] to transition to solar power…[T]he Dekalb County school system wanted to put solar panels on their schools, but could not do it because of…the Territorial Electric Service Act of 1973…Typically, one of the biggest obstacles…to switch to solar energy is the initial cost of obtaining and installing the panels. A [power purchase agreement (PPA)] allows a school system, for example, to obtain the panels for no cost from a solar installation company which finances the panels…Then, the school can purchase the energy from the solar installation company…[A] PPA client typically pays for the panels after the first five years and then saves money on energy for the next 15, all the while avoiding the use of dirty energy…[B]ecause of Georgia's Territorial Act, individuals, organisations, and businesses with solar panels can only sell their energy to Georgia Power. This means they cannot enter a PPA with a solar installation company…"

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"For those who are able to buy or lease their own solar panels, selling that energy to Georgia Power--the only allowed buyer--is subject to the rules of Georgia Power's net metering program. Net metering is where residents and businesses with solar panels sell any excess energy produced by the solar panels to Georgia Power for use by other customers…Georgia Power [has] put a cap and waiting list on purchasing solar power from Georgia residents and businesses…[and claims] its ability to purchase solar power…is limited by the proceeds of its "green energy blocks" program, wherein Georgia Power customers are allowed to pay extra to purchase blocks of solar energy…

"However, Georgia Power charges more for solar power than it does for coal-based power, so there's no incentive for most customers to purchase it…Many of the purchasers of blocks of solar energy are government agencies that need to comply with government mandates to support clean energy…"

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"Other states like Colorado have taken a different approach to encourage the use of solar panels. They charge all energy customers 50 cents a month, a very low amount, to support the purchase of solar energy from producers…[T]he Tennessee Valley Authority has enrolled 13,000 green-power customers and has no cap on the annual amount of green energy it will buy from producers…To be sure, Georgia Power is only following the regulations established by the legislature and PSC. However, they lobbied for those policies to be enacted in the first place…

"In addition to regulatory tricks, there are more direct ways in which big energy companies like Georgia Power are blocking solar and wind power…Big energy companies are lobbying at the state and national levels to prevent public policies from shifting towards renewable energy production as well. Georgia Power's parent company, Southern Company, employed 63 lobbyists to fight the recent federal clean energy bill…far more lobbyists than any other company…"