IBM was a master of creating FUD (Fear Uncertainty and Doubt) tactics. Now it seems that utility companies (large businesses that buy fuels and produce and sell electricity), and fossil fuel corporations are adopting IBM’s old strategies. Why is the utility and fossil fuel industry suddenly interested in Solar? Do Utilities and fossil fuel corporations see solar and other renewable energy sources as a threat? Recent incidents in the USA highlight a disturbing pattern of active intervention by utilities and fossil fuel interests to maintain their market stranglehold to the detriment of reducing greenhouse gases and lowering energy prices.
The utilities are fighting to maintain their monopoly stranglehold of the electric market. Take for example Southern California Edison, SCE. In February 2008 they filed a request to implement a Renewable Energy Payment (REP) policy (also called a Feed-in Tariff (FIT)) through the California Public Utilities Commission. The proposed rate would allow SCE to receive 47¢ a kWh for electricity produced from their renewable energy installations with 700 MW or more production capacity. This rate would allow SCE to have a return on investment in under 4 years. At the same time SCE and Pacific Gas and Electric (PGE) opposed legislation that would allow residential solar producers from reselling any of their electricity back into the grid. What’s fair for one should be fair for another. If the Utilities demand 47¢ a kWh for their monopoly REP or FIT policies, there should be no opposition for homeowners to receive the same rate.
Recent proposed federal renewable energy legislation also has a built in bias that favors large corporations over homeowners and small renewable energy producers. Take for example S3335, one of seven recently failed energy and tax bills in the US Senate. Under the provisions of S3335, utilities and renewable energy corporations would be entitled to a 30% Investment Tax Credit (ITC), but homeowners would be prohibited from any investment tax credit larger than $4,000. This law would effectively give a 30% unfair monetary advantage to utilities and commercial interests to build large systems at the expense of residential taxpayers. Homeowners/voters would be financially constrained to install only a 2kW system or enough to provide only 40% of their energy needs.
Over 450 million people in over 40 countries operate under Renewable Energy Payment or Feed in Tariff policies. These laws provide incentives for everyone—homeowners, farmers, small and large businesses—to produce and sell renewable energy and are proven to stimulate the growth of renewables. Take Germany for example, 41% of their solar power comes from households, farms and small businesses. Overall, in only 4 years, they grew their domestic renewables (wind and solar) from one percent to 14%. In the US, several states have adopted or are considering REP legislation. In addition, a national Renewable Energy Payments bill, HR 6401, has been introduced in the US House of Representatives by Congressman Jay Inslee (D-WA). This legislation would take effect in all states and be supervised by the Federal Energy Regulatory Commission (FERC). Again, the lobby organizations reflecting the utility interests are not supporting HR 6401. The rest of us need to.
By Norman Mann
(Photo courtesy of Flickr user sandman, shared under a Creative Commons license.)