Pennsylvania Tries to Improve SREC Market With New Legislation

A new bill was introduced in the Pennsylvania State Senate in August intending to improve the declining solar renewable energy credit (SREC) market in the Keystone State. A bill suggesting similar improvement had stalled in the House in 2011 (HB-1580), but Senator Dave Argall (R-29) is trying to kickstart the SREC market through legislation in the Senate. 

This new version of the  Senate Bill includes a:

-new timeline structure for the AEPS growth and decline from now until 2025, including an increase to the Alternative Energy Portfolio Standard (AEPS) solar carve-out requirements from 2013-2015.

- change the alternative compliance payment (ACP) to $285/SREC for compliance in years 2013-2019 then reduce the ACP by 2% each subsequent reporting period

- change to eligibility requirements for renewable energy producers, to allow for solar thermal facilities

Notably, however, this version of the Bill no longer includes language to close the market to out-of-state systems, which has historically been what spares an overwhelmed SREC market in the past. So, now two questions remain: 

1) will this watered down senate bill garner the support it needs to become legislation and 

2) if it does, will it be able to improve the SREC market without closing out other states? 

You can read more about this in Anna Noucas' article Pennsylvania Senate Introduces Solar Bill to Effect Change in The Declining SREC Market. 

ITC Makes Decision- Chinese Solar Gets Tariffs

Is this the end of the discussion? The International Trade Commission (ITC) voted unanimously that the imports of solar cells from Chinese manufacturers are harming U.S. solar manufacturers. The ruling will result in tariffs being added to any solar modules that include parts made in China. The ITC, however, did find any critical circumstances in this case, and therefore no tariffs will be applied retroactively.

This issue is far from black and white, as this article in Renewable Energy World, points out. Much like the classic debate of free market vs protectionism, new tariffs or restrictions will make new winners and new losers.

For instance, some US companies that currently import Chinese parts fear that they will shoulder the burden of these new tariffs. As E.L. "Mick" McDaniel, Managing Director of Suntech America said "the continued growth of trade barriers represents a serious challenge to the U.S. solar industry, for American jobs, and for energy consumers globally."

The underlying issue, however, is why the tariffs are even being considered. The ITC, is not reviewing the case simply for a "buy American" policy, but because there is a strong belief that Chinese companies are benefiting from Chinese government subsidies that throw that global solar market out of balance. Without something (like the US government) correcting for those imbalances, some might argue, US companies can't compete. As Gordon Brinser, President of SolarWorld America said, "Commerce's decision raises the industry's chances of reclaiming footing for domestic, sustainable and environmentally sound solar -technology producers and their jobs."

That being said, however, the tariffs would certainly add an additional incentive for American companies to "buy American." Where do you stand on this trade issue? Is this the way to make American solar companies and jobs competitive? Or is there a better way?

(Oil) Money Can't Buy You Love But Renewable Energy Can Earn It

The fossil fuel industry has spent millions of dollars to keep themselves on the top of the energy game. But Election 2012 proved that money does not buy you happiness- at least for the fossil fuels. According to this article on the Huffington Post, by mid-September, oil, gas and coal companies had spent more than $150 million on campaign ads. In one week alone, Texan oil barons donated $10 million to Governor Romney. At the current rate, by the end of the election- well over $200 million will be spent trying to put pro-fossil fuel politicians in office.

Ohio- Senator Sherrod Brown ran on a record of supporting renewable energy and environmental protections and was re-elected for a second term.
New Mexico- Martin Heinrich- a clean energy advocate, beat out Representative Heather Wilson- a pro- drilling, anti-climate action candidate for a Senate seat.
Virginia- Governor Tim Kaine, with a proven record in favor of clean air and environmental standards, kept his seat despite fossil fuel companies pushing hard (financially) for his opponent.

These advocates might have survived the onslaught from the fossil fuel lobby- but they aren't the only clean energy advocates America put in office on Tuesday.

Steve King and Tom Latham- both from Iowa, Dean Heller from Nevada and Dave Reichart from Washington all won re-election this year and all are big wind power advocates.

So here we are- post election. Pro- clean energy and renewable energy advocates have prevailed. The voters have spoken and a majority want more renewable energy and environmental protection. We can all breath a sigh of relief. But there's no time to rest on our laurels.

Now the real work starts.