When I first became involved with TXSES nearly a decade ago, the biggest challenge was solar adoption by the mainstream. Today, the debate is on how much solar will be integrated to the Texas / ERCOT grid. We know the right answer – let Texas entrepreneurs and innovators integrate renewables and storage on the grid so that it’s more reliable and less expensive for everyone, allowing for the marketplace to define its natural limit.
This happened because of you.
What started a decade ago as grassroots support morphed into something more powerful: grassroots support paired with industry support! TXSES’ members knew they could lower their electric bills and back up their essential household loads but today, industry leaders know that zero-fuel-cost solar with innovative technologies makes solar essential to the grid.
TXSES is helping to make sure that solar is never held back by its own actions.
Its programs and educational efforts will ensure that when Texas calls for more energy, solar can say, “we have more to provide!” Workforce development must always be a foundational pillar and the work TXSES does with the “From Classroom to Career Building: Building the Pipeline for Texas’ Clean Energy Workforce” program with the State Energy Conservation Office means that high school graduates can have the skills to move into well-paying, rewarding careers. Ensuring every member of society, no matter their income level, has the opportunity to invest in low-cost energy for their homes is another positive outcome we anticipate from our new collaboration with the Texas Energy Poverty Research Institute. Everyone should have the financial tools to protect themselves from rising energy costs, so financial model innovations are as important as technical innovations.
Making this all come together takes financial resources. We’re proud to have brought on a new Director of Development to help identify, compete for, and win the grants so solar can expand its footprint across Texas. Competition for grants is tough but when foundation leaders hear what we’re doing in Texas, they step up. We’re thankful for all the support we receive. Whether from charitable foundations, or our business members who have invested in TXSES, or individual members who are the original solar advocates in Texas – we thank you for your generous and frequent support.
As I conclude my second term as the TXSES board chair, let me say a few thank you’s.
All things start and end with the Executive Director, Patrice ‘Pete’ Parsons, who does so much for the organization. Me and my fellow board members remain inspired with what she accomplishes. Pete is the exemplar of passion and energy. Thanks to every board member who volunteered to serve. Each of you, past and present, has brought unique skills, viewpoints, and relationships that help TXSES “punch above its weight.” Keep casting the net wide and far for those who are enthusiastic about our important mission.
The final thanks are to you, our TXSES members and #1 advocate for what we do. At TXSES, we don’t lobby. We don’t write legislation. But as we’ve done for more than four decades, we support people and programs that educate all Texans about the benefits of solar for all Texans.
Lastly, the Texas Legislature convenes in January for its biannual session. We’ll continue to be on point identifying critical issues and providing independent insight. Make sure you tell your Representative and Senator that solar is important to you and important for Texas.
Solar has enjoyed great success across Texas these past years. Even more opportunities lie ahead. It’s been my great privilege to be around the very best solar advocates to contribute to the TXSES mission. Thank you for letting me be part of this important group.
The diversification of the Texas energy marketplace is a smart step for all Texans that will ensure all Texans are blessed with abundant energy at the lowest price in the decades ahead.
In response to Mr. Peacock’s article, “Why Texans are paying more for less electricity” I am reminded of the saying, “there is a lot to unpack here.” And that unpacking gets harder when the author lumps all PUC policy decisions into the tired cliché, “it’s renewables fault”.
The success of ERCOT has been the open marketplace where generators bid in electricity at the lowest price. ERCOT historically has been the exemplar of market forces acting to provide the lowest cost electricity for Texans. No matter our industry background and political affiliation, we should all question whether the latest Public Utility Commission policy directions to subtly shift from an energy market to a quasi-capacity market is what was intended by the Texas Legislature and best for all Texans. But to lump these PUC and ERCOT policy changes as part of some sinister effort by the renewables industry and co-opted politicians is disingenuous at best. This isn’t an apples and oranges difference; it might be better described as apples and Chevrolets. The latter two aren’t related nor are the latest PUC policy decisions and the integration of renewables.
By Howard ‘Scot’ Arey
Chair, TXSES Board of Directors
As I write this column, President Biden announced that the U.S. will cease to import Russian oil. Simultaneously, Ukraine is set to join the European energy system in a further step to lessen its dependence on Russian oil and gas. The Nord Stream 2 Baltic Sea gas pipeline, designed to double the flow of Russian gas direct to Germany, has been canceled. This conflict is causing consequential global energy turmoil. How do the U.S. and Texas look beyond the political paradigms of yesterday to keep the lights on, cars and trucks running, and energy plants producing ample energy for our communities?
At our recent strategic planning meeting, the TXSES board discussed how behind-your-meter distributed solar is under attack. We know it’s not enough to fight the policy roadblocks put in place by rural electric cooperatives looking to protect their historical business models. Instead, we need to show how solar complements Texas’ entire energy portfolio making it more available and less expensive for everybody. Texas solar needs to shift from an “us-them” to an “all-of-Texas” approach.
“All of Texas” acknowledges that our state has four natural resources: oil, natural gas, wind and solar. No other state touches the resource availability we have. Most other nations envy what we have. This is not the first time I’ve written this but until the Texas Legislature imposes severance taxes on a gust of wind or a photon of sunshine, it might not care as much about wind and solar until they deliver dollars into the state coffers. While I’m not suggesting that Texas tax wind and sunshine, I do wonder what it would take to export our abundant renewable energy resources. The answer might be opening ERCOT (Electric Reliability Council of Texas) to the other national grids so we can export our excess wind and solar production. Want to see an economic boom? Monetizing exportable Texas renewable resources will help Texas and the nation writ large.
Texas is home to some of the nation’s leading top research universities. Not only must we turn wind and solar into exportable resources, but we must also innovate concepts and models for distributed rooftop solar to contribute to the resiliency of the Texas grid. A look at ancillary services is just the tip of where solar and storage can contribute to grid stability. Expanding the art of the possible, imagine how virtual net-metering and blockchain technology might enable you and me to contribute excess kilowatt-hours directly to a non-profit to help them accomplish their mission. We have the researchers, innovators, and entrepreneurs to make this happen.
It takes bold legislators to make this happen, as policy is too often driven by silo-like trade associations that push one-dimensional models. These models might have worked yesterday. But today is a different world.
It’s going to take an embrace of everything Texas has to offer to keep our homes, cars and industries in Texas and the nation running. It will take All of Texas.
Another year draws to a close, and even in these trying times of inflation and supply chain concerns, we have much to be thankful for. With energy inflation a substantive part of our household expenses, Texans are adapting and installing solar at a pace like never before.
Solar continues to be installed at record levels but even more noteworthy is that energy storage is a part of nearly every solar system today. Whether a customer wants a home energy storage system during the initial installation or as “battery backup ready,” every installer I’ve met recently says they’ve been asked about energy storage when meeting with potential customers.
That’s good for everyone because a distributed network of energy resilient homes and businesses is a practical, smart hedge against what might happen this winter. Is ERCOT ready? Leaders say that Texas is ready. We can hope for good weather and adequate preparation but for many families, the suffering from last year was too much to simply rely on “hope” for others’ preparation and assurances.
Energy storage is the technological response to Texas retail electric providers, electric cooperatives, and municipalities that are changing the rules for your solar investment. The policy struggle with Pedernales Electric Cooperative is the most egregious example of reducing the “buy-back” credit for your solar generation. Fortunately, energy storage will empower Texas solar customers to store their solar for nighttime use and for grid emergencies. The year is coming when energy storage is just as normal a part of a new home as a refrigerator and oven.
Let me close by giving heartfelt thanks to departing board members David Brearley, Amy Olsen, Josh Rhodes and Ron Zagarri. Each shared their clean energy expertise and ideas and helped this board be better and more informed. We were very fortunate to have them. As we welcome 2022, we look forward to our new board members to help us create solutions that reduce energy costs for owners while making our grid more resilient than ever. If you’re a TXSES member and haven’t yet voted for the 2022 board candidates, there’s still time! Deadline to vote is January 5, 2022.
Looking ahead to 2022, our agenda is ambitious: expanding community solar, building a quality workforce, educating consumers about the benefits of solar energy and raising awareness of sound, smart solar policies. In the end, we come together because we believe similar things. What we do, and more importantly, why we do what we do, are inextricably linked. Our passion inspires others to join us in the pursuit for something important for Texas.
Happiest of holidays to you and yours. All the best,
There is a train wreck coming for behind-the-meter distributed solar and it’s our responsibility to fix it.
Even after the positive outcome from the policy debate with the Pedernales Electric Cooperative, we are entering another phase of tough-policy whack-a-mole. This will be harder to resolve for the benefit of solar owners because it’s against the big, anonymous, corporate world of “Retail Electric Providers.”
Last week, many solar owners got a notice from Green Mountain Energy and Reliant that they were no longer offering their net-metering-like Renewable Rewards program, instead putting in place a new program. Amending a Winston Churchill quote, the incorrect perception of the new solar-buy back policy got halfway around Texas before the real facts on the Energy Facts Label could be understood for what they really are.
Here is what Green Mountain Energy (GME) policy really is: GME will no longer buy back more excess solar for credit than you buy from them. If you pulled 700kwh from the grid, then the maximum solar credit is 700kWh, even if you pushed 1,000 back to the grid. A monthly plan charge of $9.95 was also added and that drives up the average per kWh charge further. This policy is very much like many of the electric cooperatives now. The most challenging part is that the energy charge is about 20% higher than for standard non-solar plans and for many, these price gaps spoil the solar value in the near term.
This might not be popular, but the solar industry is partly responsible for this situation. A solar industry with less oversight from Texas than hairdressers receive has over-promised to homeowners. Too many cases of overbuilt solar arrays resulted in customers producing far more than they used resulting in huge credits from their retail electric providers (REPs). Retail electric providers, like GME, contend it’s a losing business model for them.
Unfortunately, this happened at the end of the legislative session and that means we face two years of REPs adjusting plans without legislative leaders being able to weigh into the benefit of solar owners. All we have are the parting words of the Governor to the all-new PUC which was in essence “make renewables pay their fair share.” It started right away. Georgetown Utilities recently announced a $1,000 facility study fee and a $450 “Installation and Inspection” fee for solar owners!
In the competitive electric utilities, there is no mandate that REPs provide any form of solar buyback. Today there are about five REPs that do, with the terms getting worse each month.
It’s time for behind-the-meter solar installers to be part of the solution. This means that in our Texas (mostly) hands-off business mentality, we must design systems that are “win/win” for consumers and providers alike. No more designing to 100+% of need, even if the homeowner demands that he “wants a credit.” That’s what too many have done for years and now policy has taken a turn for the worse.
The pendulum is swinging against distributed solar, at a time when the state needs as much energy as possible from a variety of sources. Policies and buyback programs perceived by consumers to be unfair will disrupt the Texas solar industry.
It’s my hope that our TXSES business members will come together in this next year and develop, in collaboration with the Texas Department of Licensing and Regulation (TDLR), the Public Utility Commission and the legislature, well-founded professional standards to ensure that solar on your rooftop or behind your barn remains an indispensable part of the Texas energy landscape.
