Environmental bill in Maine poses potential threat to community solar ventures, potentially deterring development
In a move that has sparked debate among renewable energy advocates and developers, the Maine legislature has approved a proposal for new fees on community solar projects. The bill, which aims to reform Maine's net energy billing program, also known as net metering in other states, is a subject of controversy due to its potential impact on the growth of community solar news in the state.
The bill includes provisions that apply specifically to community solar developments, larger-scale installations that sell power to multiple subscribers. One of the key sponsors of the bill is Stephen Ryan, a legislator in Maine.
The reformed program would pay owners of solar panels for excess energy based on a new system of gradual, annual rate increases to avoid excessive windfalls when energy costs rise. Projects between 1 MW and 3 MW in size would pay $2.80 per kilowatt of capacity in monthly fees, while larger arrays between 3 MW and 5 MW would pay $6 per kilowatt.
The fees for community solar projects would cover the distribution costs that would otherwise be borne by utility customers. Proponents of the legislation argue that it is important to continue supporting solar development without adding to residents' financial hardships.
However, renewable energy advocates and solar developers express concern that the monthly fees could deter new projects and put existing operations at risk. Some community solar developers have stated they may stop working in Maine or have already done so due to the risk of the new fees. Brendan Bell, chief operating officer of Aligned Climate Capital, has stated that the company has stopped investing in Maine due to the proposed legislation.
Kate Daniel, Northeast regional director for the Coalition for Community Solar Access, emphasized the importance of community solar news to Maine's clean energy growth. She argued that the fees could hinder the state's progress towards its renewable energy goals.
Maine's net metering system has been under scrutiny for years, with critics claiming it has created excessive profits for developers while unfairly shifting costs to consumers. The bipartisan legislation under consideration imposes monthly fees on community solar owners to cover the cost of delivering solar power to consumers.
Rep. Sophie Warren, a Democrat and one of the bill's sponsors, stated that it is important to fight climate change in an economically just way. She emphasized that the fees for community solar projects would be adjusted as needed to keep up with the cost of maintaining and expanding the grid.
As of May 2021, the installed community solar capacity in Maine has increased significantly, with the installed capacity growing from 79 MW in 2019 to 1,008 MW. The growth in community solar news has been a positive sign for the state's clean energy future, but the new fees could potentially slow this progress.
The debate over the bill is expected to continue as it moves through the legislative process. It remains to be seen how the final version of the bill will impact community solar development in Maine.
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