The 36 solar panels point south from their perch on the roof
of Cumberland First Baptist Church. At
first blush, they seem like an unlikely nod to one of the most basic Christian
tenets.
"There is a holy mandate to care for the earth, which
God created and called good," The Rev. Thomas Wyatt Watkins tells me,
quoting from the Old Testament creation story.
As the pastor showed me the 9-kilowatt, photovoltaic array
installed in October, Watkins said the church's plunge into the world of
alternative energy is tied to a faith concept called "Creation Care,"
which focuses on being good stewards of all God's gifts.
A few miles to the west, in the heart of Indianapolis, an
even larger span of 80 solar panels sits hidden atop the roof of Englewood
Christian Church. It generates about 20 percent of the church's energy,
said Joe Bowling, who manages the solar project. That savings frees up money to
support church
outreach programs in a depressed and under-served neighborhood.
Solar panels are sprouting up alongside steeples and crosses
on church rooftops across the state. At least seven Indiana faith groups have
made the move to solar power, in part to shift precious dollars from utility
bills to God's work, and another seven or so are in the process of adding
systems.
But legislation now pending at the Statehouse has Watkins
and Bowling concerned that other churches, as well as individual homeowners
(they both have solar at home, too), will lose that opportunity. The
legislation proposed by Rep. Eric Koch, R-Bedford, is backed by Indiana's 14
investor-owned electric and gas utilities and opposed by environmentalists,
some manufacturers of solar products, consumer advocates and the state's
growing faith-based "Creation Care" movement.
Why this matters
Just because you don't have a rooftop solar system now
doesn't mean you don't need to be paying attention.
While there is little common ground between the two sides in
this fight, there is one point on which they all agree. And this is why you
need to be watching this bill: Thanks to technology improvements and dramatic
price drops, small-scale, home solar generating systems are on the verge of
becoming much more viable for Hoosiers.
That fact is driving a rush from both sides to get out in
front of an expected surge in small-scale solar power systems by creating a
regulatory framework that best fits their agendas.
Bottom line: There is a heap of money at stake in this
fight. And, one way or the other, most of it will come out of our pockets.
At the heart of the fight is the concept called net
metering. Under current Indiana law, utilities are required to buy excess power
from small-scale producers at retail prices — or the same amount you and I pay
the big utilities. The power companies want a new — and better — deal allowing
them to buy that power at a wholesale price, cutting the amount solar producers
earn by as much as 60 to 70 percent.
Both sides jockeying
Koch's proposal (House Bill
1320) hasn't come up for a hearing yet. But the contentious and complicated
legislation already is spurring verbal fireworks, with each side jockeying for
public support and claiming the other is spreading misinformation.
Opponents portray the legislation as a boon for the utility
companies. It will reduce the financial incentives, they claim, to invest in
rooftop solar. They say it also will limit the options for homeowners and
churches that want to use "free energy" from the sun to save money
and reduce dependence on the state's electrical grid, which relies heavily on
coal-fired generating plants.
Supporters contend the bill will do just the opposite. They
say it is aimed at removing obstacles for investing in home-based solar and
improving customer safety. They also argue it will eliminate an existing
"subsidy" they contend now shifts solar savings to other customers,
often folks with lesser means than those who can currently afford solar.
Right now, there are only about 600 customers — including the
Cumberland and Englewood churches — that both buy and sell power via net
metering arrangements with their utility companies. And even if HB 1320 passes,
they will be "grandfathered" in under their current deals.
Small-scale producers who are totally off the grid will not
be affected. Neither will large commercial producers — such as the solar farm
at Indianapolis International Airport and the great expanse of windmills along
I-65 in northwestern Indiana. They have separate contracts with the utility companies.
What's at stake
What's at stake is how the utilities deal with homeowners,
churches and small businesses who want to turn to solar, wind or other forms of
alternative energy — but also must rely on the grid for at least some of their
power. That is the segment of the market where the most growth is expected. It
also is the one targeted by Koch's legislation.
Koch and Mark Maassel, president of the Indiana
Energy Association, say the current net metering hurts customers who don't
have solar panels of their own. And, if small-scale solar expands as expected,
they say it will shift a growing share of the utilities' fixed costs for
generation, transmission and distribution onto traditional customers.
They also told me the bill would make solar more accessible
to residential customers by setting leasing guidelines for those who cannot
afford to purchase a system. It also would establish "right to know"
standards for those leases so consumers don't get surprised by costs or
conditions tucked deep in a contract's fine print, Koch explained.
"The goal is to promote (small-scale solar) in a way
that is responsible and with a regulatory structure going forward that allows
consumers to invest with confidence and to be protected," he told me
Friday.
"We are trying to get out in front of a lot of the
issues that have created problems in other states."
Kerwin Olson, executive director of Citizens Action
Coalition, disagrees with Koch and the IEA's effort to frame the
legislation as consumer-friendly. He also strongly disagrees with their
contention that net metering users receive any subsidy. The utilities enjoy
other savings, he said, when they buy power via net metering, even when they
pay the retail price.
"We reject the very starting point of the
conversation," Olson said. "This is a war on solar because of the
dramatic decrease in costs and the explosion (of small systems) across the
U.S."
The bill has not been scheduled for a public hearing. But it
could come up before the utilities and energy committee in the House as early
as Wednesday. When that hearing comes, Koch said he is open to discussion — and
he expects to see amendments proposed.
A call for a study
Olson and opponents are calling for lawmakers to hit the
pause button on the bill. They would like to see an independent study on the
effects of the growing solar market on the utilities and their customers.
Olson said similar studies in other states have contradicted
the utilities' claims regarding the impact of net metering. An Arizona study,
for instance, found each dollar spent buying power through net metering
provided $1.54 in benefits to Arizona Public Service customers. Those benefits
come from avoiding "expensive and polluting conventional power and power
plants; reduced investments in transmission and distribution infrastructure;
reduced electricity lost during transportation over power lines ... and savings
on the cost of meeting renewable energy requirements,"the
study said.
"The utilities," Olson contends, "are trying
to avoid that conversation in Indiana."
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