Editor’s note: This commentary is by David Flemming, who is a policy analyst at the Ethan Allen Institute.
[V]ermont has reached solar saturation, creating the possibility that parts of our electric grid could malfunction and leave thousands without power for days. But some large renewable energy companies are trying to lobby our government for yet more solar.
Nearly 50% of Vermont’s 150 electrical power substations are at risk of “transmission ground fault overvoltage” (TGFOV) if more solar is added. As developers and homeowners use net metering to supply more solar electricity generation to our grid, the load (demand for electricity), has stayed constant with our stagnant population. This means that if homeowners add solar panels at stress points in our grid, something as common as a tree falling on a power line could send a surge of destruction back toward substation transformers.
In February, Green Mountain Power filed with Vermont’s regulatory authority, the Public Utility Commission to charge $75 per kilowatt for new solar projects. Since the average residential solar project is around 6 kilowatts, the average developer/homeowner would be charged $450.
A renewable energy trade group, Renewable Energy Vermont, was able to negotiate with GMP to decrease that ~$225 size-dependent fee to a $37 per kilowatt which would be used to fund the grid upgrades.
Still, some renewable energy magnates weren’t satisfied with this amazingly generous 50% reduction in fees. David Blittersdorf’s solar company, All Earth Renewables, lambasted the $37 fee for still being too high: the “distribution grid of today and tomorrow must be available (read: “free to developers”) if a more electrified renewable-powered society is going to make a difference in addressing climate change.” To that point, the grid upgrades “should be borne by ratepayers — the collective beneficiaries of Vermont’s renewable energy laws and policies.”
Raise your hand if you’ve felt like a “collective beneficiary” of top-10 in the nation electric rates. All Earth Renewables has used its political connections to grow a fledgling business dependent on subsidies into a company that gets $20 million from the government and consumers. Large renewable companies don’t need more tax dollars. They’ve already gotten millions from Vermont. And despite years of promoting proclaiming “free energy from the sun,” our electric grid is more vulnerable, not less, to extreme weather stemming from climate change.
It’s time to see if Big Solar can survive, weaned off the government dole. We’ve given them a two decade head start. Large companies that depend on taxpayers to do business don’t deserve Vermont’s corporate welfare. Virtuous businesses on the other hand, find ways to satisfy their customers using the fewest resources possible, without resorting to subsidy. It’s time for Vermont’s subsidized big businesses to learn this lesson. If not now, then when?
An electric grid that wasn’t designed for net metering limits how much solar Vermont can absorb. Vermont has, quite literally, more solar generated electricity than we know what to do with. A blatant cash grab from Big Solar is the only reason Vermont would invest in more solar. But it’s not a very good reason.
