Massachusetts Gov. Charlie Baker and Lt. Gov. Karyn Polito passed comprehensive solar legislation into law Monday in collaboration with elected officials from around the commonwealth, according to a Monday press release.
The bill, a joint effort between Baker’s administration and the Office of Energy and Environmental Affairs, aims to move toward a cleaner environment in a cost-effective way.
“The bill, An Act Relative to Solar Energy, passed both legislative chambers with overwhelming support and achieves the Baker-Polito Administration’s goal of reducing costs to ratepayers while strengthening the state’s clean energy economy and progressing towards the greenhouse gas reduction requirements set forth under the Global Warming Solutions Act,” the release stated.
Baker said in the press release that the legislation will allow the development of a reliable, affordable solar industry in the commonwealth.
“This legislation builds upon the continued success of the Commonwealth’s solar industry and ensures a viable, sustainable and affordable solar market at a lower cost to ratepayers,” Baker said in the release. “Solar development will be an integral component of our state’s clean energy future and we look forward to collaborating with the legislature on an omnibus energy bill that includes cost-effective, hydropower generation.”
The legislation calls for raising the net metering caps from 5 percent of public utilities’ “peak load” to 8 percent, and for raising the net metering caps of private utilities’ from 4 percent to 7 percent, according to the press release.
“The bill allows the Department of Energy Resources (DOER) and the Department of Public Utilities (DPU) to gradually transition the solar industry to a more self-sustaining model,” the release stated. “This approach includes robust stakeholder outreach, and will establish the next generation solar incentive program at a reduced cost.”
Massachusetts Senator Benjamin Downing, who contributed in writing the legislation, said that with over 200 solar-based companies and over 15,000 employees, solar energy is a major component of the Massachusetts economy.
“It’s a step in the right direction in the sense that if we didn’t raise the caps, we would have seen more projects that were stalled, that would sort of wither on the vine and then just die,” Downing said. “We would have seen more companies that had avoided layoffs, then laying people off and then shrinking.”
Other provisions will alter the net metering caps for credit for solar projects, he said.
“There is a provision that allows for the establishment for a minimum bill,” he said. “So under current incentives, you can have a world in which you sell so much energy back to the grid that your bill becomes zero.”
The legislation adjusts the rates for private versus public projects. Though the solar energy levels were raised, there is still more to be done, Downing added.
“I think you can make a strong case on the data that solar and other distributed renewables deserve full retail rate reimbursement,” he said. “The 6o percent retail rate that we landed on was pretty clearly a negotiated position.”
To lower nonparticipant ratepayers’ net metering, the legislation sets 60 percent of the full retail rate as the credit value for solar projects excluding those that are residential, small commercial, municipal and government-owned, according to the press release.
“To facilitate continued solar growth within communities around the Commonwealth, the bill preserves retail rate credits for municipal and government-owned projects and continues to exempt residential and small commercial projects from the net metering cap and any net metering credit reductions,” the release stated.
Boston residents had mixed views about the legislation and the importance of utilizing solar energy.
Derrick Smith, 63, of Dorchester, said the legislation will benefit residents through its convenience and affordability.
“If it’s affordable, everybody would like to pay a low bill,” he said. “I think solar, you get it for nothing. You get it through the sun, so it’s free — you need not have generators. If it’s a good project, it’s OK.”
Melissa Silk, 57, of Roxbury, said she supports the legislation because of its positive environmental impact.
“It seems, in general, like a good idea,” she said. “There’s no reason not to. [The legislation will create] less dependence on fossil fuels.”
Clara Gorin, 59, of Allston, said the use of solar energy is unsuitable for Massachusetts due to the state’s dark winters.
“I don’t like it because when it’s winter time, it will be darker,” she said. “It’s so dark, especially in the evening.”
Dave Sebastian contributed to the reporting of this article.
