Arkansas

By Daniel Letwin, Union Jake, and Adam Keller - Valley Labor Report, March 1, 2024

By Howard Crystal, Roger Lin, and Jean Su - Center for Biolgical Diversity, March 2023

A war over the nation’s energy future is raging across the United States. On one side are everyday people who can benefit from clean, renewable energy through distributed-solar projects like rooftop and community solar. On the other side are for-profit electric utilities threatened by distributed solar’s impact on their lucrative, guaranteed profits. These companies are using their influence with regulators and legislators in a coordinated effort to undermine the expansion of distributed solar. They recently succeeded in California. This report addresses the environmental and economic justice of net energy metering, or NEM, and the utility industry’s false and self-serving claims against distributed-solar growth.

To combat the climate emergency and pervasive energy inequity, we need to maximize distributed solar development. NEM already exists in many states and is a key policy driver to expand distributed solar. Customers pay only for the net electricity they use each month, considering both the power going to the grid when rooftop-solar systems generate excess electricity and the power coming in from the grid (particularly at night). Net metering substantially reduces electricity bills, allowing people to recoup their distributed-solar investments.

For-profit utilities are fighting NEM on multiple fronts and in many states. In California, for example, they recently convinced regulators to gut net metering for new customers. In Florida a utility-backed bill to gut net metering passed the legislature. Utility companies fight NEM because it undermines their business model, which assumes that centralized utilities are the only legitimate makers and sellers of electricity.

As this report shows, anti-net-metering talking points are based on an outdated version of the grid, where for-profit utilities control everything. Utilities want to gut net metering to maintain control and use the proceeds to pay for rising utility costs, including the growing costs of addressing climate-fueled catastrophes and stranded assets in fossil fuel infrastructure.

Read the entire statement (PDF).