Duke Energy has invested more than $6 billion in renewable energy and is proud that South Carolina now ranks among the top 20 in the country for the amount of solar installed. But I appreciate how we must balance the operational and economic aspects of this important renewable resource.
As our legislative session nears its conclusion, there continue to be efforts to sneak more subsidies for the solar industry into other bills. All of our customers need the facts about renewables so they can inform their choices and let their representatives know their views.
We are being painted as anti-solar, but we are not. We are, however, anti-subsidy. Let’s separate rhetoric from truth on a few points:
Rhetoric: Utilities are stopping customers from installing rooftop solar.
Truth: All customers have the right to own and operate electric generation to serve themselves. The real issue is whether solar-energy system owners should receive subsidized credits if they choose to “net meter.” Net metering is a billing mechanism that credits solar-energy system owners for the electricity they add to the grid. Under current rules, the credits these customers receive include a subsidy that is funded by all other customers. In other words, all of our customers are paying some of our customers for their private solar power. If solar is cost-effective, then it’s time to stop the subsidies.
Rhetoric: Utilities don’t want solar in South Carolina.
Truth: Our strategy includes generating power from cleaner energy every day. Just a few years ago, Duke Energy had fewer than 100 rooftop solar customers in the state. That number is now more than 5,000 and growing daily, in large part because of rebates and other incentives we put in place to give the solar installers a hand up. But any time there are subsidies, someone is paying: either our customers or the thousands of investors in our company who live in South Carolina — not the out-of-state solar developers. Customers should know what solar is truly costing them — or their neighbors who are in reality subsidizing their choices. And those subsidies are on top of tax subsidies already available to developers. Do they really need state-mandated, customer- or investor-funded solar welfare as well?
Rhetoric: Solar jobs will be lost if we don’t act now.
Truth: This is false and unfair to the hardworking solar workers throughout the state who have been callously threatened with losing their jobs. Thanks to a steady decline in installation costs, the industry will continue to grow and jobs will continue to flourish — even without subsidies.
Rhetoric: Utilities are just trying to protect their profits.
Truth: In order to help jump start the solar industry, the Legislature passed Act 236 in 2014 and unanimously agreed to give the solar industry a subsidy by having utilities pay well above fair-market value for the energy the sun creates on rooftops. But that was never envisioned to last forever, and now we need to move forward and let the industry stand on its own by paying rooftop solar what it is fairly worth.
I’ve spent time explaining to many in our state how utilities operate and listening to their views on what is best for all South Carolinians. Many folks like the idea of solar, but no one is eager to pay more than it’s worth once they understand the truth.
What’s right for South Carolina is a collaborative approach, like the one that led to Act 236 and created the best path forward to responsibly grow solar energy in South Carolina. We are eager for common-sense legislation that is fair and balances the interests of all who call our state home — solar providers, energy companies, customers who use solar energy and those who do not. Let’s come together to chart a smarter energy future for all of South Carolina.
