Florida’s booming solar industry threatened by proposed changes to current net metering laws.
Solar advocates across the state are warning of existential threats to the solar industry thanks to proposed changes to current net metering laws. This session, the Florida State Legislature has introduced two bills that recommend changes to a 2008 law allowing solar customers to be credited for excess energy.
Net metering is a billing mechanism that allows solar customers to send excess energy back to the grid. It provides a credit for that excess power which can be used to offset future usage. The energy returned to the grid is then sold by the utility to nearby neighbors at retail rates.
Senate Bill 1024 and its companion bill, House Bill 741, aim to end net metering for future solar customers and recommend a 10-year period to grandfather-in current net metered customers with solar.
Solar advocates suggest that the proposed changes threaten more than 40,000 jobs in an industry that represents $18.3 billion in economic value and $3.3 billion in total tax revenue. In other parts of the state, eliminating net metering is known to cause significant job and revenue losses. The City of Jacksonville offers a glimpse of this future should net metering policies be eliminated.
In 2018, Jacksonville’s city-owned utility company changed its net metering policies and reduced the amount of compensation that solar customers received for excess power. The change doubled the time for solar customers to recoup their investment and the demand for solar plummeted. Veteran-owned solar company, A1A Solar, was forced to let go half of its 50 employees because of the change.
According to industry polls, solar is popular among Floridians. In the panhandle region alone solar has grown exponentially with more companies moving into the market every day. According to a 2021 poll conducted by the Florida Solar Energy Industries Association (FlaSEIA) and Conservatives for Clean Energy, 93% of both Republicans and Democrats in Florida support net metering.
Opponents of solar claim that net metering allows customers to offset their monthly bill so extensively that it causes non-solar customers to pick up extra costs. However, data shows that solar customers still purchase the same amount of power as non-solar customers, with an average bill of at least $80.
In addition, opponents claim that there is as much as a $30 million dollar cost-shift due to rooftop solar. Yet, the cost-shift argument assumes that a customer with solar creates the same grid costs as a customer without solar. Advocates claim that by using this logic, any customer who took steps to reduce their electric bills – installing LED lights, lowering their thermostat, buying new windows – could be accused of not paying their fair share.
Solar advocates are calling on current customers, industry leaders, local companies, and concerned citizens to voice their thoughts during committee hearings over the next few weeks of the legislative session. Advocates interested in participating are encouraged to contact Florida Solar Energy Industries Association (FlaSEIA) President, Justin Vandenbroeck at justinv@flaseia.org.
About Advocates for Rooftop Solar
Advocates for Rooftop Solar is a coalition of solar business owners, industry leaders, product distributors, and solar homeowners working to expand rooftop solar adoption in Florida. Based in the Panhandle region, Advocates for Rooftop Solar is committed to maintaining a robust and prosperous solar industry in the Sunshine State.
