Photo by Tim Fuller Flickr CC
In a carefully watched case with national implications for the solar power industry, a Dane County district judge ordered Friday that We Energies can’t impose an extra tax on its residential customers who own rooftop solar panels.
“The decision was loud and clear that solar charges on customers are not allowed because you cannot provide any evidence to show that it’s necessary,” said Amy Heart, spokeswoman for the solar industry trade group The Alliance for Solar Choice (TASC).
The state Public Service Commission (PSC), which reviews any new rate requests made by utilities, signed off on We Energies’ plan in December 2014. That solar tax will not be imposed on Jan. 1, 2016, as planned.
RENEW Wisconsin and TASC challenged We Energies’ new solar tax in court, arguing that the PSC shouldn’t have approved the additional fee because We Energies hadn’t provided any evidence that solar panel owners don’t pay their fair share to We Energies for their use of the electrical grid when they aren’t generating their own energy. In fact, a study unearthed in the rate case showed that a We Energies-commissioned study found that solar owners actually save the utility money—not harm it—because they take pressure off the grid during peak electricity usage.
Despite the lack of evidence, the PSC approved the solar tax, which was supposed to go into effect Jan. 1, 2016, and cost solar owners about $20 a month. Customers who produce biogas or hydropower would have been forced to pay a higher fee under the plan.
We Energies spokesman Brian Manthey released a statement saying, “At this time, we are reviewing our options. We believe sufficient information was provided for the commission to include a demand charge on customer generation.”
He noted that Judge Peter Anderson did not remand or vacate other fees that We Energies will impose on its customers in January.
We Energies was just the second utility in the country to propose this type of solar fee. An Arizona utility imposes a $5 a month fee on its solar power-generating customers, far less than the fee the Wisconsin PSC approved for We Energies.
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Heart said the ruling is a big win not only for rooftop solar owners in We Energies’ territory but for the state’s solar industry as a whole.
“This is huge,” Heart said. “First and foremost, Wisconsin’s solar market is allowed to stay alive and thrive. Customers who have been waiting to make an investment to control and lower their energy bills can now do it. And there’s no question that this is a critical victory. It sends a message to other utilities around the country.”
In a statement, RENEW Wisconsin Executive Director Tyler Huebner said, “Renewable energy is good for Wisconsin. When customers produce their own power, it increases our energy independence. When customers produce their own power, it increases energy security. A growing renewable energy industry will create jobs and bring investment to the state.”
