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07/19/2018 News Release Image

"Energy News Network" featured Karl Rabago, executive director of Pace University Energy and Climate Center, in "In Northeast, net metering in flux as states look to reform solar policy"

From new charges and restrictions to buy-all/sell-all models, Northeast states look to upend net metering.

As states in the Northeast reconsider net metering, a patchwork of new solar policies is emerging along with mixed predictions about their potential impact on solar development.

Every New England state plus New York is reassessing retail rate net metering, in which customers are paid for unused solar power at the same rates they pay for electricity from their utility.

States are considering everything from new charges and restrictions to, in the case of Maine and Connecticut, eliminating net metering programs altogether. The debates have pitted legislators against governors and environmental groups against one another as they seek compromises amid unusual alliances.

The reform efforts follow complaints by utilities that net metering shifts costs onto other customers. Several studies, though, have shown the value that solar adds to the grid and may even justify higher-than-retail compensation. One study in Maine found that value to be more than double the retail rate.

Solar advocates point to a cautionary tale from Nevada, where the repeal of net metering in 2015 resulted in a loss of one-third of that state’s solar jobs before it was reinstated a year and a half later. They also note that businesses might be inclined to shift from one Northeast state to another depending on which has more favorable policy support.

“Rooftop solar has grown from a funny little blip to a mainstream industry that employs (nationally) hundreds of thousands of people and generates significant amounts of power,” said Sean Gallagher, vice president of state affairs at the trade group Solar Energy Industries Association. “Utilities have started to become concerned about the impact of rooftop solar on their business models.”

“Obviously we are in the midst of change,” said Ed Davis, director of rates for New England’s powerhouse utility Eversource, which operates in Massachusetts, Connecticut and New Hampshire.

What states are doing

The most recent battleground is Connecticut — an early leader in clean energy. In an update to the state’s energy strategy this year, its Department of Energy and Environmental Protection recommended ending net metering, grandfathering existing systems for a time, and instituting a so-called buy-all/sell-all model for new systems.

Buy-all/sell-all essentially is a two-meter system in which solar owners sell all their system’s power to the grid at a rate lower than retail. Then the customer buys back— at full retail cost — all the power it uses from the grid. The upshot is a system that not only increases rates and fees but also makes on-site energy storage less economical.

Pushback was fierce. Even a compromise that forced the Department to keep net metering in place with buy-all/sell-all as an option split environmentalists. Its exact parameters are yet to be determined by the state’s regulatory authority.

Residential solar giant Sunrun, which pulled its operations out of Nevada when that state repealed net metering, strongly opposed the Connecticut compromise.

“What we really push back against and find to be backward looking are rate designs that choose not to value distributed generation appropriately and are punitive to consumers,” said Evan Dube, Sunrun’s senior director for public policy. “What we need is for distributed generation to be valued and compensated fairly.”

Maine’s regulatory authority already put a buy-all/sell-all system in place, but a court challenge filed in the second half of 2017 has yet to be decided. Since then, the legislature has twice approved legislation to undo it. Both times Republican Gov. Paul LePage vetoed it with the legislature falling just short of enough votes for an override.

In 2015, Rhode Island began a compensation program calledRenewable Energy Growth, or REG, as an alternative to retail rate net metering. It uses a fixed price tariff that is higher than the retail rate. But those who choose it can’t use the state’s solar grant program or the various tax breaks available to solar owners.

Massachusetts has had some form of retail rate net metering in place since the early 1980s. It has undergone changes in recent years and is poised for another one. Certain larger systems have had the compensation rate lowered to 60 percent of retail. They are also capped — with the caps having been repeatedly met and raised. Efforts to eliminate caps have been unsuccessful.

Residential systems generally are exempt from the caps and still get full retail rate net metering. However a new incentive program called Solar Massachusetts Renewable Target, or SMART, is designed to balance net metering with incentives. The more net metering compensation you get, the lower the incentive.

The program also includes a demand charge, which advocates say is a disincentive to getting solar.

Solar advocates view New Hampshire’s gradual approach as the best example of a net metering update. The state’s cap on net-metered systems was raised and then eliminated. But part of the compromise was that for certain size system compensation rates would be reduced.

Notably, the state’s public utilities commission determined that cost shifting was not occurring at the low penetration rate. And it ordered a value of solar study to determine further actions.

In the meantime the new Republican governor, Chris Sununu, recently vetoed bipartisan legislation that would have raised the size of systems eligible for compensation from one megawatt to five.

His Democratic predecessor, Maggie Hassan, who is now the state’s junior U.S. senator and under whom much of the net metering reassessment began, in April introduced the National Evaluation of Techniques for Making Energy Technologies more Effective and Resilient (NET METER) Act to create a national study on net metering to guide states interested in starting a net metering program or expanding an existing program.

‘A tough time for utilities’

Utilities’ cost-shifting argument is a “big lie,” said Karl Rabago, executive director of Pace University Energy and Climate Center and a former utility executive and regulator who has also worked with many northeastern states on energy policy. “It’s just that fundamental assertion that a reduction in use creates a cost.”

Utilities, he said, “position self-generation as a zero-sum game, us versus them, and they’ve been successful in convincing the policymakers.”

“Of course there’s still a cost shift,” said Eversource’s Davis. “There’s still a cost to be recovered for that service,” he said, for solar customers who use the company’s wires and poles, even if it’s just for part of the day. “If that customer doesn’t pay for it somebody pays for it.”

But Dave Ismay, a senior attorney with the clean energy and climate change group at the regional Conservation Law Foundation counters that no one makes the same argument for vacation homes on Cape Cod hooked to the grid all year but only using electricity for part of it.

“The rest of the year, guess what they’re paying? Nothing,” he said. “If I lower my own usage by energy efficiency I don’t pay anything either. If I turn off the lights and don’t run the A/C, I don’t pay it either. But suddenly when you’re putting solar on your roof you’re being unfair. So it’s just really nonsense.”

Advocates also argue that cost shifts are unlikely with solar penetration rates still low in the Northeast — about 5 percent in Massachusetts but not even cracking 1 percent in others.

“It’s a tough time for utilities trying to figure out how they move forward in this world,” said Janet Gail Besser, executive vice president of the Northeast Clean Energy Council (NECEC), who hopes they use it as an opportunity to revamp their models. “The technology isn’t going to stop changing because people don’t want to change an old framework.”

Utilities have to keep in mind that solar is popular with customers, said SEIA’s Gallagher. “Utilities in the long run I think are going to have to find a way to give customers what they want and the industry has to find a way to work with utilities to insure utilities remain viable,” he said.

Besser points out that net metering has been successful in helping states adopt solar and that in turn helps create new industries and jobs.

“I think the states that are implementing these drastic changes are going to be very disappointed when they see development slow or stop,” said Besser, who is among advocates who admit that the solar industry is maturing and warrants re-evaluation. “The way you address it is to adjust the net metering credit; it is not to end net metering.”

The question is at what point does it need to be re-evaluated.

“I’m willing to say it’s OK if you get out in front of it a little bit. It’s not the end of the world,” said Mark LeBel, a staff attorney with the regional environmental advocacy group Acadia Center. But self-consumption of electricity — owning, storing and using your own generation — needs to be protected. “That’s the future,” LeBel said.

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12/04/18

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"The Federalist" featured Pace Haub Law School Professor Mimi Rocah in "8 Fake News Stories Being Peddled About Michael Cohen's Guilty Plea"

12/04/18

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Press Release: Pace University Students Share Experiences Working for the Associated Press on Election Night

12/03/18

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"Forbes" featured Pace President Marvin Krislov's latest piece: "What Will the Harvard Case Mean for Affirmative Action? An Explainer"

12/03/18

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"Greenwich Times" featured College of Health Professions Professor Joanne Singleton on her work for the Canines Assisting in Health program in "Innovative service dog training comes to Greenwich Hospital"

11/30/18

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"The Examiner" featured Pace University's Pride Hoops Night in "Pace Hoops Teams Show Pride in Support of LGBTQ Community"

11/30/18

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"Live Science" featured Pace University's dean of graduate programs Daniel Baugher in "Why Impatience May Hurt Your Heart"

11/30/18

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"Bloomberg" featured Pace University's Haub Law School Professor Mimi Rocah in "Cohen's plea deal suggests Russians held Kompromat on Donald Trump"

11/30/18

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"The Guam Daily Post" featured Pace University's Haub Law School Professor Mimi Rocah in "Trump-Manafort agreement could be illegal"

11/30/18

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"Yahoo News" featured Pace University's Haub Law School Professor Mimi Rocah in "What Cohen’s Plea Deal Means for Trump, His Business and Mueller"

11/30/18

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"Mother Nature Network" featured Pace University's Professor Daniel Baugher in "How to be more patient"

11/30/18

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"Fios1 News" featured Pace University's Pride Hoops night with basketball and the LGBTQ community in "Supporting the LGBTQ Community"

11/30/18

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"NBC2" featured Pace Haub Law School Professor Mimi Rocah in "Cooperation between Trump, Manafort camps raises specter of obstruction of justice"

11/29/18

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"Newsweek" featured Pace Haub Law School Professor Mimi Rocah in "Donald Trump-Paul Manafort Legal Arrangement Was Straight Out Of a 'Mafia' Case Says Former Federal Prosecutor"

11/29/18

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"Diverse: Issues in Higher Education" featured Pace University's Provost Vanya Quiñones in "VANYA QUINONES"

11/29/18

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Nursing Association Grants Mentorship Award to Dr. Harriet Feldman

11/28/18

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"NYONEL Newsletter" featured Pace University’s College of Health Professions’ Dean Harriet R. Feldman PhD, RN, FAAN in "NYONEL to Host ANA Review Course for ANCC Nurse Executive Certification"

11/28/18

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"Bloomberg" featured Pace Haub Law School Professor Mimi Rocah in "Manafort Lied Repeatedly, Wrecking a Plea Deal, Mueller Says"

11/27/18

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"Raw Story" featured Pace Haub Law School Professor Mimi Rocah in "WATCH: Paul Manafort may not be cooperating over ‘fears of retaliation’ by the Russians"

11/27/18

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"Westchester County Business Journal" featured Pace University's Haub School of Law Jessica Bacher and John Nolon's piece "Governments must focus on sustainable development, fair housing"

11/27/18

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"Daily Voice" featured Pace University's double alumna Andrea Stewart-Cousins of Westchester in "Stewart-Cousins' Elevation As NY's First Female Majority Leader Lauded By Cuomo, Pace President"

11/27/18

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"The Hindu" featured Lubin School of Business Professor P.V. Viswanath in "Unwitting 26/11 negotiator still gets the jitters"

11/27/18

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Statement from President Marvin Krislov on the Election of Pace Alumna State Senator Andrea Stewart-Cousins as Majority Leader

11/26/18

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"The Wall Street Journal" featured Pace Haub Law School professor Bennett Gershman in "Mistrial in Queens Jogger Murder Case Puzzles Legal Experts"

11/26/18

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"Westchester County Business Journal" featured Pace University's President Marvin Krislov's piece "Investment in infrastructure, facilities pays off for Pace"

11/20/18

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"The Conversation" featured Pace University's Professor of Communication Studies Adam G. Klein's piece "Fear, more than hate, feeds online bigotry and real-world violence"

11/20/18

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"Business Insider" ranked Pace University #2 in "RANKED: The 50 most underrated colleges in America"

11/19/18

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"Newsday" featured Pace Law School professor Bennett Gershman in "Two Long Island dumping cases, two different punishments"

11/19/18

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"Hudson Valley 360" featured Haub Law School Professor Jay Carlisle in "Carlisle presented with 40-year Award "

11/19/18

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"Draft Diamonds" featured Pace University's football middle linebacker, Brenton Allen in "NFL Draft Diamonds Prospect Interview: Brenton Allen, LB, Pace University"

11/19/18

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Press Release: Pace University Joins Forces with Shanghai Lixin University of Accounting and Finance

11/16/18

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"Law360" featured Pace Law School professor Bennett Gershman in "Dewey Drama Takes Unexpected Twist With Ex-CFO's Jailing"

11/16/18

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"The Journal News" featured Rachel Carpenter, assistant dean of student affairs at Pace University in "Going Greek! Advantages of Fraternities and Sororities"

11/16/18

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"Forbes" featured Pace President Marvin Krislov's latest piece: "Here's How To Improve College Access And Drive Student Success"

11/15/18

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"Raw Story" featured Pace Haub Law School Professor Mimi Rocah in "'He's going to indict a group of people': Watch ex-prosecutor explain her theory on the next round of Mueller indictments"

11/14/18

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"Law & Crime" featured Pace Haub Law School Professor Mimi Rocah in "What Robert Mueller's questions mean for President Trump may signal the beginning of the end"

11/14/18

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"City and State" featured Hillary Knepper, chairwoman of the Pace University Department of Public Administration in "Education - Without the Anxiety"

11/13/18

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"Aaptiv" featured Jessica Tosto, MS, RD, clinical coordinator, Nutrition and Dietetics College of Health Professions at Pace University in "4 Healthier Dip Recipes to Whip Up Quick"

11/13/18

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"The Journal News" featured Pace Setters Field Hockey in "Field hockey: Pace University, with former local HS stars, is ranked second in country"

11/12/18

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"Hudson Valley Magazine" featured Elisabeth Haub School of Law at Pace University in "Hudson Valley Colleges: 15 of Our Greater Institutions of Learning"

11/12/18

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"International Disarmament Institute News" featured Pace University professors Dr. Emily Welty and Dr. Matthew Bolton in "Pace University Professors Deliver Keynote Address on Nuclear Disarmament at Parliament of the World’s Religions, Toronto"

11/08/18

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"Chabad.org" featured Pace University's Lubin School of Business Professor Meylekh (P.V.) Viswanath in "Tragedy and Resolve: 10 Years After Mumbai Terror"

11/08/18

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"Westchester County Business Journal" featured Pace University President Marvin Krislov in "Pace Honored by Latino U College Access"

11/07/18

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"News12" featured Pace University Sophomore Julia Ferrugio in "Millennials hit the polls at Briarcliff High School"

11/07/18

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"Broadway World" featured Pace University's Musical Theatre faculty members Will Reynolds and Eric Price in "Will Reynolds & Eric Price Announced Winners of 14th Annual Fred Ebb Award"

11/06/18

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"Playbill" featured two Pace University faculty members, Will Reynolds and Eric Price in "Songwriters Will Reynolds and Eric Price to Receive 2018 Fred Ebb Award"

11/06/18

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"PopSugar" featured College of Health Professions Clinical Assistant Professor of Nutrition Jessica Tosto in "Planning a Keto Thanksgiving? Here's What You Need to Know About Cranberry Sauce"

11/05/18

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"Forbes" featured George Andreadis, Adjunct Professor of finance at Pace University, in "3 Things IBM Sees In Red Hat That Others Missed"

11/05/18

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"Dallas News" featured Pace University's Lubin School of Business Professor of Marketing Larry Chiagouris in "Is it legal for a politician to block a constituent on social media?"

11/05/18

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"Yahoo News" featured Jessica Tosto, MS, RD, clinical coordinator for the nutrition and dietetics program at Pace University's College of Health Professions in "Planning a Keto Thanksgiving? Here's What You Need to Know About Cranberry Sauce"

11/05/18

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"Law360" featured Pace University's Haub Law Professor Bennett Gershman in "NY Plan To Police Prosecutors Enters Uncharted Territory"

11/05/18

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"Business Council of Westchester" featured Pace University Haub Law Professor Mimi Rocah in "BCW Political Leadership Series Offers Midterm Election Preview"

11/02/18

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“Fios1 News” featured Pace University President Marvin Krislov in “Midterm Predictions”

11/02/18

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Press Release: The Elisabeth Haub School of Law Celebrates 30 Years of Clean Energy Work at the Pace Energy and Climate Center

11/01/18

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"Pleasantville Patch" featured two Pace University students Sydney Korman and Terrie Soule in "Pace Students Address UN General Assembly"

11/01/18

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"Fios1" featured Pace University in "Pundits discuss political possibilities at Pace"

11/01/18

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"Fios1" featured Pace University in "Feeding Westchester brings Mobile Food Pantry to Pace Univ."

11/01/18

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"Westchester Rising" featured Pace University in "Pace & Feeding Westchester Launch a Mobile Food Pantry"

10/31/18

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"Daily Voice" featured Pace University Haub Law Professor Mimi Rocah in "Politics Expert From Pace Previews Mid-Term Elections"

10/31/18

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"STEMconnector" featured Pace University’s Seidenberg School of Computer Science and Information Systems in "Pace University Opens New Learning Space Bringing STEM Computer Science Projects to Life"

10/31/18

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Press Release: Pace University Students Address the UN General Assembly

10/30/18

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"CNN" interviewed Dyson's Criminal Justice Professor Darrin Porcher in "Pres. Tump: The Media Also Has A Responsibility to Set a Civil Tone"

10/30/18

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"The Atlantic" featured Pace University's President Marvin Krislov in "What Happens When a College’s Affirmative-Action Policy Is Found Illegal"

10/30/18

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Press Release: Pace University Opens New Learning Space Bringing STEM Computer Science Projects to Life

10/29/18

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"Wallet Hub" featured Pace University's Lubin School of Business Professor Edmund H. Mantell in "Student Credit Cards with No Credit"

10/26/18

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"Crime Report" featured Pace University's Law Professor Bennett L. Gershman in "Should Parole Hearings Be Off-Limits to Prosecutors?"

10/26/18

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"Forward" featured Pace University's honors program student Daniella Harris's piece " How My Hearing Loss Inspired Me To Help Others"

10/26/18