SOLAR ENERGY I am writing in response to Eric Kilens’ article on why the state should beef up solar in the 10-year energy strategy (“Why the state should beef up solar in energy strategy,” July 16-29 NH Business Review).
Mr. Kilens lists himself as senior solar advisor at Granite State Solar, so I must assume he has a financial interest in seeing more solar promoted by the state of New Hampshire.
One of the major points in his article is that NH increase the renewable portfolio standard (RPS) law requirement for new solar projects. The RPS is a law that mandates electricity providers must buy a minimum amount of different types of qualified renewable energy. What Mr. Kilens does not state is increases to the RPS requires increases in the existing subsidies that the renewable energy suppliers already receive. The cost of these subsidies is 100% passed on to the ratepayers via higher electric rates. He makes no mention of the additional costs or who has to pay for them.
There are a few more things he does not mention. According to a recent study performed by the U.S. Department of Energy’s Berkeley Lab, the average household income of residents with solar facilities is about 75% higher than those who don’t. So, increasing residential solar will increase the amount of subsidies that lower-income households pay to higher income ones. Of course, there is more than just income involved in deciding to install solar.
People who rent, own a condo or just have a very small yard could not install solar even if they wanted to. Also, if your monthly electric bill averages less than $150 to $200, you will never recoup the capital costs of installing solar even with the taxpayer and ratepayer subsidies. So, the family renting an apartment pays a higher electric bill to subsidize a family living in a 4,000-square-foot house with central air, an in-ground swimming pool and a hot tub.
The most important thing he left out was that increasing the RPS, in fact even having an RPS at all, is not necessary. NH has a law that requires all electric utilities to provide up to 100% renewable electricity to any customer who wants it and is willing to pay for it. When I was a PUC commissioner, this law was suspended due to lack of participation. Only about 0.1% of customers were willing to voluntarily pay more for renewable electricity. If companies like Mr. Kilens’ spent more time trying to convince people that their product was worth buying even at a higher price and less time lobbying the government to force people to buy their product, the RPS might not be unnecessary.
In a nutshell, Mr. Kilens wants the state to force people to buy more of a product they don’t want to buy so that his company can make higher profits.
Rep. Mike Harrington, R-Strafford, is House assistant majority leader and a member of the House Science, Technology and Energy Committee.