Could it be true? Is SMUD overpaying its rooftop solar customers in Sacramento? According to energy consulting firm, Energy + Environmental Economics (E3), the answer is yes– while solar advocates say no. The energy firm was commissioned by SMUD to conduct a study on the true value of solar in the Sacramento area.
Results in the study found that the current value of solar is 3-7 cents per kWh, in comparison to the current 12 cents per kWh rate. SMUD says the goal of its not-for-profit electric company is to ultimately create a new net energy metering (NEM) rate for rooftop solar customers that not only allows them to continue delivering clean power at low rates, but at a rate that also fairly compensates solar customers for the benefits from their rooftop systems. SMUD says the process will remain public if any official rate changes are made, but the decision will ultimately be approved by the SMUD Board of Directors.
The current 12 cents per kWh rate, according to the study, currently creates a cost shift to non-solar customers, and also disproportionately impacts low-income customers. This means that non-solar customers pay on average about $45 a year extra for not having solar.
To SMUD, the study is an important first step in “getting solar right,” but skeptics say the study is flawed. Solar advocates believe that the study was initiated to discredit the value of customer-sited solar to the utility, community, and environment. It also has some questioning, who’s next? If SMUD follows through with cutting the NEM rate, could PG&E, Southern California Edison and other utility companies follow suit?
Arlen Orchard, SMUD’s CEO and GM started a campaign to collect public support in making cuts to NEM, even though directors on the SMUD Board, who also oversee the utility, remain opposed to Orchard, and are vocal supporters of solar.
So what can you do? Are you an advocate of solar? Tomorrow, September 16, the board will hold a meeting to hear from the public on what it believes as a whole SMUD should do.
Interested to have your voice heard? Email publiccomment@smud.org to sign up for the meeting now!