Let the Sunshine In: Is There a Future for Residential Rooftop Solar Energy in Florida?

• Date: 01 September 2022
• Author: DeMeo, Ralph A.

In an interesting and somewhat shocking development, on April 28, 2022, Gov. Ron DeSantis vetoed legislation that would have altered the current solar energy net metering alternative energy generation option in Florida. The major investor-owned utilities drafted and lobbied hard for House Bill 741: Net Metering, substituted for Senate Bill 1024: Renewable Energy Generation, arguing that electric utility customers who do not have rooftop solar units are paying extra every month for the few who do, thereby putting a disproportionate and negative economic burden on their utility customers. The governor, however, did not agree with this argument, stating strongly in his veto letter: "Given that the United States is experiencing its worst inflation in 40 years and that consumers have seen steep increases in the price of gas and groceries, as well as escalating bills, the state of Florida should not contribute to the financial crunch that our citizens are experiencing." (1) As a result of the veto, stakeholders including rooftop solar companies, residential solar panel owners, and the general public that supports alternative energy, have a reprieve--at least for now--from the negative economic and environmental consequences of the proposed net metering rollback; however, this likely will not be the last time a bill is proposed to change the current net metering option. All stakeholders should continue to shine the light on this proposed initiative and contact local legislators and the governor to urge opposition to any future bills that attempt to limit the economic and environmental benefits of net metering and solar energy in Florida.

By way of background, the U.S. Energy Information Administration projects renewable energy generation to supply 44% of U.S. electricity by 2050. (2) Today, 21% of the electricity generated in the U.S. is from renewable energy sources, such as solar, wind, geothermal, hydroelectricity, and other methods. (3) Although wind currently accounts for 43% of renewable generation, while solar accounts for 19%, solar energy is projected to substantially bypass wind energy and produce 51% of the renewable generation by 2050. (4) According to the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, solar power is more accessible, prevalent, and affordable than ever before. (5) Since 2014, the average cost of solar photovoltaic panels has dropped more than 70%, and the cost of a concentrating solar-thermal power (CSP) system has dropped by about 50%. (6) As market demands continue to increase for both residential and commercial consumers, as well as investment firms looking to capitalize on the lucrative renewable energy market, technology companies have begun to compete to reduce the cost of renewable energy production in order to meet the increased demand. (7) To reduce costs, technological companies research and develop cheaper ways to reengineer modules, hardware, inverters, and storage components to reduce the overall cost of renewable solar power generation. (8)

The state of Florida has, at least until recently, a solar energy-friendly regulatory climate. Indeed, F.S. [section]366.92 expressly states:

It is the intent of the [l]egislature to promote the development of renewable energy; protect the economic viability of Florida's existing renewable energy facilities; diversify the types of fuel used to generate electricity in Florida; lessen Florida's dependence on natural gas and fuel oil for the production of electricity; minimize the volatility of fuel costs; encourage investment within the state; improve environmental conditions; and, at the same time, minimize the costs of power supply to electric utilities and their customers. (9) The Florida Legislature created the Florida Solar Energy Center (FSEC), a research institute of the University of Central Florida (UCF), in 1975 to serve as the state's solar energy research institute. (10) FSEC was promulgated to conduct research on issues such as Florida-made energy and it's efficiency, to create criteria for testing solar energy systems, to develop and adopt standards for solar manufacturing, and to develop educational programs. (11) Florida also encourages renewable energy generation through the use of small customer-owned renewable energy generation equipment through a cost incentive called net metering. Florida Administrative Code Rule 25-6.065 allows customers who own renewable energy equipment, such as solar panels, to produce their own energy to offset their use of utility-produced energy to reduce their utility energy. (12)

Above and beyond the environmental benefits of using renewable energy, the concept of "net metering" is another significant and monetary benefit. (13) Net metering is a billing mechanism that allows customer-owned renewable energy generators to not only offset their consumption onsite, but also earn credits for the excess electricity they add to the grid. (14) For example, during the day, a PV system on a residential customer's roof can generate more energy than what the home uses because energy generation during daylight hours is likely to be higher than the energy consumed within the home during workday hours. (15) If the home has been approved for net-metering, the excess energy produced will cause the electricity meter to run backwards...