Solar energy threatened in a state recognized for its environmentally friendly fuel

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On this April 15, 2019, the photo of Todd Miller stands next to solar panels on the roof of his solar installation business in Ankeny, Iowa. When Miller started his solar energy installation business, one of the challenges was to match customer orders, as tax incentives and lower prices for roof-top roof panels created a booming demand for this form of clean energy. Four years later, he now faces a real hurdle: an action in the state legislature that he believes could put solar energy companies out of business (AP Photo / Charlie Neibergall).

When Todd Miller launched his two person solar installation business in the suburbs of Des Moines, he had to face a challenge to keep up with customers' orders. Indeed, tax incentives and lower prices for rooftop roof panels have created a strong demand for this form of product. clean energy.

Four years later, Miller's company had 14 employees, but he now faces a real hurdle: an action in the state legislature that he believes could put solar energy companies in jeopardy. bankruptcy.

The threat comes from an unlikely source, a public service known as an alternative energy champion for the installation of thousands of wind turbines in the landscape. The darling of wind energy is pushing legislators to incur additional costs for future solar energy customers, even if it makes energy uneconomical economically.

"Everything should be aligned for the best year we've ever had," said Miller. "Instead, it's a lot of sleepless nights."

For years, wind and solar have been twin friends in the campaign for green alternatives to fossil fuels, but the relationship is deteriorating in a number of states, particularly in Iowa. , where more than 4,000 turbines produce 34% of the state 's electricity, the second highest rate in the country.

About half of these turbines have been installed by MidAmerican Energy, a leading wind energy company based in Des Moines, who notes with pride that its impressive blades are turning enough to meet the demand of its customers. The utility has set a goal for a growing solar industry made up of dozens of small businesses across the state.

Acronyms come from the fact that alternative sources of energy are fueling a growing percentage of the country's needs. Since 1990, the country's wind capacity has risen from 0.2% to 6.5% in 2018 and, over the last ten years, the average annual growth rate of solar energy has been 50%. About 2 million solar systems have been installed on homes and businesses across the country, including 3,700 in Iowa.

As alternative energy gains popularity, the number of tax incentives and other rules designed to revive such sources of energy continues to grow.

MidAmerican has received billions of dollars in federal tax credits for the construction of its wind farms. With the phasing out of these incentives, MidAmerican and other utilities are now challenging the particular benefits that solar energy receives. Federal tax credits covering solar installation costs will decrease in the coming years and will end in 2022 for residential and 10% for commercial projects.

One of the keys to the recent success of solar energy in Iowa and in many states is that when the panels produce excess energy, the current law requires that it be sold to public services at a higher price. Solar advocates argue that if the price is lowered or other fees are added, as proposed by MidAmerican, the foundation for the expansion of the sector is threatened.

"At a time when extreme weather events caused by global warming and climate change are ravaging us, we should thank people, businesses, farmers and homeowners who have committed to producing energy without where they live and work, "said Senator Joe Bolkcom, Democrat and Alternative Energy Advocate. "We should thank people for doing more than that, without trying to remove all the jobs and undermine the good work done in the state."

MidAmerican strongly urged that the legislature require a homeowner with an average solar facility to pay about $ 27 a month, which would greatly reduce the savings realized by customers when they install a system at a cost approximately $ 30,000.

Although energy savings vary from region to region, human rights advocates say solar systems can be amortized in 25 years.

The state Senate approved the measure, mainly with the Republicans voting. He is waiting for action in the House, but lawmakers oppose the idea that farmers are going through a difficult period and that new fees would deprive them of an opportunity to save money. 39; money.

MidAmerican says the new fees would go to maintenance of the electricity grid, which solar customers use when they resell excess electricity to the company.

"It's a question of fairness to customers," said MidAmerican spokeswoman Tina Hoffman. "Paying for the grid if you use the grid is the meaning of this policy."

US utilities have made similar arguments by proposing to increase solar customer fees or pay less for their excess energy. While nearly 20 states have approved rules encouraging solar energy, Republicans in many states have often understood the utility's argument that tax breaks simply transfer costs to other customers.

MidAmerican is a major contributor to Republicans and Democrats politicians of Iowa, and the state is proud of the success of this public service that has made Iowa a Mecca for energy. wind turbine.

In Maine, utilities have also lobbied for measures to make solar energy less attractive economically. Then-Gov. Paul LePage, a Republican, supported the moves, but the new Democratic governor Janet Mills canceled her actions this year.

In 2018, Kansas regulators eliminated much of the cost savings for solar energy users who resell additional energy. In Indiana, utilities won a bill that reduced customers' payment of solar energy for excess electricity, resulting in a significant drop in panel installations. It was a similar story in Nevada in 2016, but a backlash was inciting lawmakers to turn around quickly.

Mr. Miller, who operates his solar energy business in Ankeny, in the suburbs of Des Moines, said that in his view the problem was not about fairness but rather a cost-effective public service , eager to limit competition and dominate solar energy as it currently does with wind power. Last year, MidAmerican posted a profit of $ 682 million.

Miller pointed out that at a legislative hearing, a US lobbyist promised that the utility would use the extra fees to invest in large-scale solar projects.

"They use this as a stepping stone to support any kind of solar energy," Miller said. "If energy is produced, they want to produce it."

Nationally, utilities are increasingly investing in solar energy and by 2018 were responsible for more than half of new installations, according to the Solar Energy Industries Association.

Ashley Brown, who heads the Harvard University's electricity policy group, said state authorities charged with overseeing private utilities could step in if they thought businesses were chasing their smaller competitors. But Brown argues that users should not expect free use of utility-owned infrastructure.