How 2024’s Nationwide Solar Policy Overhaul is Impacting Solar Appointments
June 6, 2024
As 2024 unfolds, the solar industry is experiencing a whirlwind of policy changes. According to the Q1 2024 The 50 States of Solar by the NC Clean Energy Technology Center, a staggering 43 states, plus DC and Puerto Rico, undertook 163 actions related to distributed solar policy and rate design in the first quarter alone.
While some of these changes are favorable, many have introduced hurdles that could slow down the sector’s growth. This is set to affect just how successful contractors will be at making sales through the rest of the year’s solar appointments.
Policy Changes Across the States
Several states implemented significant policy changes in Q1 2024, with varying impacts on the solar market:
- Massachusetts
The Department of Public Utilities approved rule changes that allow net metering facilities to transfer credits to customers of other distribution companies and across ISO-New England load zones. This flexibility empowers customers to get the most out of their excess solar generation. Additionally, certain systems are exempted from net metering caps, encouraging more installation across the state. - Delaware
Lawmakers directed the Delaware Sustainable Energy Utility to conduct a cost-benefit study of net metering. While this move indicates a proactive approach, the study’s outcome could potentially lead to reforms that might not favor solar customers. Such studies performed in other states, such as California, have skewed heavily in favor of utilities. - Virginia
Legislators passed bills to expand shared solar programs, increasing the aggregate capacity of Dominion Energy’s shared solar program and directing regulators to develop a similar program for Appalachian Power. This expansion aims to make solar energy more accessible to customers across the state.
Other states have significantly cooled toward solar:
- Arizona
The Arizona Corporation Commission approved a new grid access charge for residential customers with on-site generation. This charge adds $0.242 per kW-DC of on-site generation for customers on standard time-of-use rates. It’s expected to deter potential solar customers due to increased costs. Such a decision is hardly a surprise in this solar-hostile territory, especially after the exploitative price gouging by the Salt River Project (SRP) in 2022. - Idaho
While the decision was technically made in the final days of 2023, Idaho’s strike down of net metering brought a somber opening to the new year for solar. The state ended its net metering program and shifted to a net billing system for solar compensation. This change means that solar customers will receive a lower rate for the excess energy they export to the grid, reducing the financial benefits of installing solar panels. - California
California already took massive steps backward in 2023 with the launch of NEM 3.0. Once again, the California Public Utilities Commission (CPUC) has sided with utilities. The CPUC rejected a proposal by solar advocacy groups that included a Net Value Billing Tariff (NVBT). The NVBT would have compensated community solar subscribers based on the value of the generation at the time it was provided to the grid. CPUC has instead decided that PG&E and SCE should determine the cost cap.Critics argue that the CPUC’s decision primarily benefits the financial interests of major utilities and does not support the state’s climate goals or the aim of reducing electric bills for low-income Californians. By approving a utility-backed alternative that is viewed as commercially unviable, the CPUC risks missing out on crucial federal funding, such as the Solar for All program.
A Larger Trend of Solar Reforms
Q1’s policy shifts are part of a broader trend of solar reforms seen in recent years. Several states, like West Virginia and Delaware, are moving away from traditional net metering models, which previously provided significant incentives for solar adoption. These reforms have often included studies and revisions that can lead to reduced compensation for solar-generated power, thus diminishing the financial appeal of installing solar panels.
This new climate of anti-solar policy is having a tangible impact on solar installation businesses. As states impose new charges or reduce incentives, solar’s overall value proposition diminishes. This, in turn, affects customer interest and adoption rates, leading to fewer installations and increased uncertainty within the industry. After seeing the 80% market contraction that hit California in 2023, many worry that we’ll see similar recessions hit other states.
Grid Freedom Supports Contractors with Exclusive Pre-set Solar Appointments
In the wake of these policy shifts, agencies like Grid Freedom are proving invaluable in helping contractors get by. Grid Freedom delivers competition-free, pre-set solar appointments with homeowners who meet all top criteria for installation, skipping them directly to the point of sale.
This targeted approach avoids the worst effects of anti-solar policies by directly connecting contractors with customers who are fully prepared for solar installations. They help contractors maintain a steady flow of business no matter what new changes come.
All of Grid Freedom’s solar appointments come already booked and screened, guaranteeing customer quality. Moreover, leads are available on an entirely as-needed basis, accommodating installers’ fluctuating needs as market dynamics evolve. No contracts, subscriptions, or minimums are required – ever.