Dive Brief:
- An Iowa state lawmaker has introduced a proposal to cut the rate utilities pay to net metering customers, but Midwest Energy News reports the state's investor-owned utilities were not behind the measure and were taken by surprise.
- Rep. Dave Heaton (R) introduced HF 2100 last week. Heaton has ties with the American Legislative Exchange Council, a conservative organization which has worked to weaken net metering rules in the past, according to the news outlet.
- The change would lower the retail remuneration rate paid to customers with solar panels producing excess energy, to a wholesale rate.
Dive Insight:
A piece of legislation to lower the solar net metering retail rate has taken utilities by surprise, according to Midwest Energy News.
Both Alliant and MidAmerican Energy told the news outlet they were not behind the legislation. Neither utility has formed a position on the bill. In addition, the Iowa Utilities Commission published its opinion last October supporting the current net metering policy.
The bill covers alternative energy facilities and small hydro, and says they will be compensated at "a rate that is based upon, and does not exceed, the rate applicable to the rate-regulated electric utility's wholsale purchase of electricity."
Net metering agreements entered into before July 1, 2016, will be subject to "a gradual rate reduction" of 25% of the difference, annually.
Although there appears little chance the measure could become law, at least in its current form – the state's solar industry is growing and Gov. Terry Branstad (R) is a proponent of the sector – advocates are still keeping an eye on the bill.
“I think it's not something we should dismiss, given the implications if it did pass," Iowa Environmental Council's Nathaniel Baer told Midwest Energy News.
Last summer, Branstad signed a law to increase solar incentives in the state, boosting by 10 MW the amount of power which can qualify for a 1.5 cents/kWh production tax credit.