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environment solar-power competition net-metering
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When homeowners or businesses install solar panels, state laws ensure utility companies pay for unused electricity that is routed back into the power grid - a practice known as net metering.
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Currently, 43 states and the District of Columbia have implemented net metering policies, some of which are more favorable than others, but all of which turn the power grid into a two-way street. More like this Rooftop solar electricity on pace to beat coal, oil Solar industry jobs are growing at 20 times the national rate U.S. utilities face up to $48B revenue loss from solar, efficiency on IDG Answers How well do solar smartphone chargers work? The cost of rooftop solar-powered electricity will be on par with prices for common fossil-fuel power generation in just two years, and the technology to produce it will only get cheaper, according to Deutsche Bank's leading solar industry analyst, Vishal Shah. As Americans have warmed to solar power and its ability to reduce electricity bills, utilities are suffering revenue losses and have been seeking ways to recoup that money. Over the past several years, state utility commissions and legislatures have pursued policies that reduce the benefits of adopting distributed solar power systems for homeonwers and businesses.
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For example, Hawaiian Electric Co. Inc. this year asked the state's Public Utilities Commission to abolish its net metering policy because customers with photovoltaic panels aren't paying their fair share of maintenance costs. Indiana legislators are pushing bills to make it more costly for consumers there to go with solar by reducing tax credits awarded for it. Legislation, such as HB1320, introduced by Indiana state Rep. Eric Koch, a Republican, would compel fixed charges on customer bills and reduce tax credits. The bill comes as the solar industry is fighting to get on its feet in the Hoosier state. Koch, has said the bill's purpose is "to promote and grow net metering." Democratic state Rep. Matt Pierce said the bill "would effectively end net metering" by eliminating the incentive to deploy solar power.
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Other states, such as Arizona, California, Hawaii, Idaho, Ohio, New Mexico, Louisiana, and Wisconsin, are discussing or have passed revisions to their net metering policies that would included fixed monthly surcharges for residences and businesses that install solar to make it less competitive with conventional forms energy.
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The Union of Concerned Scientists (UCS), a nonprofit science advocacy organization, believes pressure on legislators to reduce the benefits consumers reap from renewable energy are being led by a small number of industry-supported lobbying groups. The results of lobbying efforts have been a mixed bag. In certain states, fossil fuel and utility lobbyists have had little effect, but in states such as Kansas, there have been efforts to roll back renewable energy standards for the past two years.