In Loveland & Longmont (as in most other places) our door to door organizing has revealed that people strongly value an energy policy that supports the local economy in an environmentally responsible and socially equitable way. That is why we are asking our public electric utility to thoroughly explore and vet the Utility Ownership of Distributed Solar (UODS) model.
UODS is different then current solar models - net metering and power purchase agreements (PPA). With net metering the utility buys power from a solar owner at the retail rate (limited to 120% of owner’s electric usage) . This is problematic because non-solar Longmont customers are paying a 100% profit margin to solar owning customers. That is not very socially equitable or financially sustainable as solar adoption grows. It also limits solar to those willing and able to expend capital. PPAs are cheaper but typically occur on remote open space or agricultural land and give our non-profit utility dollars to out of town investors. PPAs also rely on tax credits that are set to expire in 2022. Private investment in PPA’s might expire with the tax credits.
With UODS the utility leases space in town upon which to install their own solar panels. The property owner gets a rent check and the panels (and power they produce) belong to the utility. UODS is far cheaper than net metering and competitive with PPAs. UODS keeps our energy dollars in the community by leasing local roofs and parking lots (maybe schools). Because the solar resource is owned by the utility the costs and benefits are distributed equally among customers. Property owners can lease much more space for solar because they don’t have to invest the capital and are not limited to 120% of usage. The cost is that the utility has to find the capital and it takes more work to own the resource than to buy the power from someone else. But that’s why we have a municipal utility in the first place. We built a coal plant (in 1980) and transmission lines because it is cheaper to own the resource than to buy electricity from Xcel Energy.
So what’s the hold up? This is all pretty new. Just a few years ago solar was expensive and nobody thought it would become cheap this soon. Platte River Power Authority (PRPA, owned by Longmont, Fort Collins, Estes Park ,and Loveland) provides our electricity and is convening a study group to explore distributed solar strategies. We need to make sure that Longmont utility leaders ask the study group to include UODS.
If you live in Longmont please email Mayor Bagley and ask him to direct the PRPA distributed energy strategy group to explore UODS. If you live in Loveland please email Mayor Jacki Marsh.
Thank you!