We Energies Revives Proposal to Tax Solar Customers

We Energies Revives Proposal to Tax Solar Customers

On May 3rd, We Energies filed an unfortunate proposal that would effectively tax their customers who make power for their own use with solar panels or other renewable energy systems.

We Energies’ proposal, filed as part of their rate case at the Public Service Commission, revives a nearly-identical approach which was rejected by a Circuit Court Judge in 2015.

This time around, they’ve named their tax the “Fixed Cost Recovery Charge.”  It would assess a charge of $3.53 per kilowatt of solar production, or about $180 per year for the average residential solar installation by We Energies’ estimation. This would mean a reduction of 20-25% of the expected dollar savings from a typical solar installation.

The charge would be $3.67 per kilowatt for small commercial customers, and We Energies stated they are planning to propose a similar charge for larger commercial and industrial customers which has not yet been formally filed.

This Proposal is Out of Step and Bad for Wisconsin

Just last month, very similar charges were rejected by the Michigan Public Service Commission and failed to pass in the Iowa House of Representatives. The Michigan PSC said the proposed charge was not based on the cost of serving customers and was thus unreasonable.  In Iowa, a wide coalition, including the Iowa Pork Producers, opposed the “sunshine tax” and it failed to pass before the Legislature adjourned for the year.

At a time when citizens and businesses across the country are looking to dramatically increase their reliance on solar power and renewable energy, allowing a utility to discourage solar is the wrong direction for Wisconsin.

 

Let’s Support Investments in Solar and Renewable Energy, Not Penalize Them

There are so many reasons to support solar power and oppose this solar tax!

  • Solar is a growing industry in Wisconsin. The industry already employs over 3,000 Wisconsinites, and it’s just getting started.
  • Homegrown energy keeps our money in Wisconsin. According to the U.S. Energy Administration, Wisconsin ratepayers spent $700 million on natural gas and $893 million on coal to generate electricity in 2017. This is money sent out of state, since we have no coal or natural gas reserves. We should be encouraging private investments in homegrown energy generation like solar that keep our money in Wisconsin.
  • Clean energy brings economic development. Leading businesses across Wisconsin and the country increasingly want access to renewable energy. It’s going to be harder to attract these job creating businesses if our utilities are allowed to discourage them from investing in renewable energy solutions.
  • We should encourage private sector investment. Individuals and businesses putting their own money into solar power and renewable energy systems is a good thing, and should not be penalized or discouraged.
  • Solar helps keep energy costs down. With solar power, customers are providing peak power on those hot sunny days when we need it most. Every dollar invested by a person or business to generate their own energy lowers the demand on the entire system, and reduces the need for everyone to pay for more power plants and transmission lines to meet higher peak energy demands.
  • ALL solar is good. We Energies itself is starting to offer solar power programs for some of its larger customers, and telling investors they plan to reshape their power generation to include more solar. We completely agree that We Energies should be maximizing the benefit of solar. But they can’t discourage solar while simultaneously talking about how great it is. “What’s good for the goose is good for the gander.”
  • Solar helps families and businesses cut costs and manage expenses. Solar power has become an affordable way to save money for many families and businesses. We need to make sure farmers, residents, businesses, and even our local governments have the opportunity to take advantage of the cost savings from solar and renewable energy.
  • Solar promotes cleaner air and water, now and into the future. Right now, Wisconsin is still using coal for 50% of our power! We all know that leads to air pollution and that coal emits carbon dioxide. Solar power systems located on homes and businesses, and owned by Wisconsin citizens and businesses, can help clean up our air and water now and for generations to come.

Please join us by taking action today! Sign our petition opposing We Energies’ proposal to tax solar panel owners.

 

PSC Approves 5-fold Solar Expansion in Wisconsin

PSC Approves 5-fold Solar Expansion in Wisconsin

Today at its Open Meeting, the Wisconsin Public Service Commission approved five interrelated cases that will lead to a five-fold expansion of solar energy in Wisconsin.

The PSC approved:

  • The Badger Hollow Solar Farm project in Iowa County, totaling 300 megawatts. Badger Hollow could become the largest solar electric plant in the Midwest when completed. In addition, the PSC approved a “tie line” that will deliver Badger Hollow’s output to a nearby substation, where it will be injected into the existing southwest Wisconsin grid.
  • The Two Creeks Solar Project in Manitowoc County, totaling 150 megawatts. As with Badger Hollow, the PSC also approved a “tie line” that will deliver Two Creeks’ output to a nearby substation.
  • Finally, the PSC approved an application from two Wisconsin utilities, Wisconsin Public Service based in Green Bay and Madison Gas & Electric, to acquire a total of 300 megawatts of this new solar capacity. The utilities will acquire the entire Two Creeks Solar Farm and a 150 MW share of the Badger Hollow Solar Farm. Wisconsin Public Service will acquire a total of 200 MW and Madison Gas & Electric will acquire 100 MW.

By RENEW Wisconsin’s estimates, the state of Wisconsin closed 2018 with about 103 megawatts of solar power, about 80% of that residing on homes and buildings, directly serving the customers who bought the solar arrays.

When completed, the 450 megawatts of solar would produce about 1.3% of Wisconsin’s annual electricity consumption, and supply electricity equivalent to the usage of about 116,500 Wisconsin homes. Both projects should be operational by mid-2021.

RENEW Wisconsin’s Executive Director, Tyler Huebner, said, “We are very happy to see the Public Service Commission approve these solar projects and find that it is cost-effective for two of our major utilities to own and operate these plants.  It is a landmark day for solar energy in Wisconsin. Solar energy is a smart choice to meet the electricity needs of our citizens, businesses, and organizations, and without a state mandate to do so.  With solar energy, we will produce homegrown, healthy energy right here in Wisconsin for years to come, and provide substantial economic benefits to the landowners and local governments who will host these projects.”
Today’s approvals build momentum for large-scale solar as a resource for power suppliers and utilities in Wisconsin.

  • Three weeks ago, Dairyland Power Cooperative announced a commitment to purchase electricity from a 149 megawatt solar facility called Badger State Solar that would be located in Jefferson County. That project is subject to PSC approval as well.
  • Just yesterday, April 10, the Richland County Board of Zoning gave final, and unanimous, approval to the 49.9 megawatt Richland County Solar Project developed by Savion Energy to be located in the Town of Buena Vista.
  • In 2017, WPPI Energy announced it would purchase power from a 100 megawatt solar project near the Point Beach Nuclear Station. That project also will seek PSC approval in 2019.

Taken together, these five new solar projects account for approximately 749 megawatts of new solar power.  If all are approved and built, they would supply 2.1% of Wisconsin’s annual electricity needs, and produce enough power to equal the annual usage of about 185,000 homes in Wisconsin. Beyond these projects, at least 4,000 megawatts of additional large-scale solar projects are being explored and developed in Wisconsin.  We encourage you to learn more about large-scale solar energy, including our long list of questions and answers, at www.renewwisconsin.org/solarfarms.


About RENEW Wisconsin
RENEW Wisconsin is a nonprofit organization which promotes renewable energy in Wisconsin. We work on policies and programs that support solar power, wind power, biogas, local hydropower, geothermal energy, and electric vehicles in Wisconsin.  More information is available on RENEW’s website: www.renewwisconsin.org.