Our Policy Recommendations
![Picture](/uploads/7/6/4/5/76453997/7597671_orig.jpeg)
Virtual Net Metering
A great incentive for property management companies, small business owners, or property owners would be to offer them the ability to transfer surplus energy to other properties that they own in the area. In urban areas having the space to install a PV system is not always an option. This program would allow owners the freedom of installing a solar PV system where they have the space to do so, and transfer the power generated to another location. This concept is known as Virtual Net Metering, and it allows customers the freedom to share the electricity output from a single power project. This policy is at its beginning stages, and is already being implemented in California, Colorado, Delaware, Minnesota, Wisconsin, and New York [5]. Each state has various restrictions to the policy, but if we were to remove such restrictions to allow people to supply other properties, with the stipulation that they must own the other property, with electricity that is being generated at another location. This would help to address the issue of limited space, and provide a significant financial incentive to install solar power.
A great incentive for property management companies, small business owners, or property owners would be to offer them the ability to transfer surplus energy to other properties that they own in the area. In urban areas having the space to install a PV system is not always an option. This program would allow owners the freedom of installing a solar PV system where they have the space to do so, and transfer the power generated to another location. This concept is known as Virtual Net Metering, and it allows customers the freedom to share the electricity output from a single power project. This policy is at its beginning stages, and is already being implemented in California, Colorado, Delaware, Minnesota, Wisconsin, and New York [5]. Each state has various restrictions to the policy, but if we were to remove such restrictions to allow people to supply other properties, with the stipulation that they must own the other property, with electricity that is being generated at another location. This would help to address the issue of limited space, and provide a significant financial incentive to install solar power.
![Picture](/uploads/7/6/4/5/76453997/3117450.jpeg?1461955591)
Property Management Initiative
In most urban areas, as previously discussed, space is a major concern when developing a community. This leads to the next policy initiative for apartment and condominium communities, which would be to offer financial incentives like the one mentioned above, and provide low cost architectural design options that would showcase efficient uses of space for the installation of solar panels. An example would be to install the panels on carports and building rooftops. This would allow the developers to maximize the efficiency of the space that they are developing, without taking away livable square footage. A property with a solar PV system would be an attractive option to potential tenants who are environmentally and financially conscience. With a little over two thirds of the United States population "pro" some sort of environmental protection plan [7]. By adding solar panels to a community it would help make that community more attractive than others that do not have a solar PV system. This would help renters feel like they are making a significant impact towards helping the environment.
In most urban areas, as previously discussed, space is a major concern when developing a community. This leads to the next policy initiative for apartment and condominium communities, which would be to offer financial incentives like the one mentioned above, and provide low cost architectural design options that would showcase efficient uses of space for the installation of solar panels. An example would be to install the panels on carports and building rooftops. This would allow the developers to maximize the efficiency of the space that they are developing, without taking away livable square footage. A property with a solar PV system would be an attractive option to potential tenants who are environmentally and financially conscience. With a little over two thirds of the United States population "pro" some sort of environmental protection plan [7]. By adding solar panels to a community it would help make that community more attractive than others that do not have a solar PV system. This would help renters feel like they are making a significant impact towards helping the environment.
![Picture](/uploads/7/6/4/5/76453997/1194227.png?1461969529)
Feed-Tariff Program
The Feed-Tariff Program is based on a German model that states such as California, Hawaii, Maine, Oregon, Rhode Island, Vermont, and Washington have already implemented with some variation [9]. The FIT program consists of two key components the generation tariff and the export tariff. The generation tariff would allow a person to earn a fixed income for every kilowatt hour of electricity that they generate. This would entail that for every kilowatt hour of electricity that is generated a person could earn money, even if they are generating electricity for their own property. This annual income would help offset the costs of the initial installation and maintenance by having their solar PV system earn money just for generating electricity for their own home. A similar system was implemented in Germany called the Erneuerbare-Energien-Gesetz, or EEG, but failed because the program was so attractive/lucrative that many people were quick to take advantage of the program, which lead to a spike in the general cost of electricity [10]. The brunt of this was shouldered by the people that either couldn’t afford to install the system on their home, or by people who rent, which meant that people who could not afford to place a solar system on their home or who were renting were now subsidizing people that could.
The Export Tariff:
The export tariff will be a part of the ten-year contract, where if a person generates a surplus of energy, and would like to sell it back to the grid they can do so for a fixed price. The utility companies will buy it back for a fixed amount, and that fixed amount will be $0.05 per kwh. This amount is less than what a utility companies charge per kwh, which would mean the utility company will still be able to make a profit from selling a person’s surplus energy to other customers, and will offset the utility company’s cost of electricity production [13]. The export tariff will encourage people to install solar PV systems on their home that are capable of not only generating the electricity needed for their consumption, but enough to generate a surplus to sell back to the grid.
Generation Tariff
The way our program is different is by not offering a twenty-year contract, but a five-year contract for reimbursement of 20% of the initial installation cost of the solar PV system. The EEG program offered $0.43 for every kilowatt hour of electricity generated for a twenty-year period, we are proposing a five-year contract with monetary reimbursement for 20% of the installation cost [10]. A person enrolled in the program would receive monthly checks for five year period that would total 20% of their installation cost. The funds for this portion of the FIT program will come from the sales tax and property taxes generated by the state of Texas. There is no need to raise taxes in order to accomplish this goal, which will make conservatives happy, and the environmental benefits will make liberals happy. The reason why there is no need to raise sales or property taxes is that we are proposing the money come from a portion of the funds that has been allocated for public utilities [12]. This money was intended to be spent on helping to subsidize electricity companies, and since a person now is providing their own electricity production a small portion of that money can go to them to help them recoup some of the costs associated with installation and maintenance of the system. The loss of money going to an electricity utility provider, would encourage them to build massive solar projects which would make them eligible for many federal government funding and low to no interest loan programs that are already in place for commercial solar systems such as the Solar Investment Tax Credit (ITC) and the Electric Loan Program.
The way our program is different is by not offering a twenty-year contract, but a five-year contract for reimbursement of 20% of the initial installation cost of the solar PV system. The EEG program offered $0.43 for every kilowatt hour of electricity generated for a twenty-year period, we are proposing a five-year contract with monetary reimbursement for 20% of the installation cost [10]. A person enrolled in the program would receive monthly checks for five year period that would total 20% of their installation cost. The funds for this portion of the FIT program will come from the sales tax and property taxes generated by the state of Texas. There is no need to raise taxes in order to accomplish this goal, which will make conservatives happy, and the environmental benefits will make liberals happy. The reason why there is no need to raise sales or property taxes is that we are proposing the money come from a portion of the funds that has been allocated for public utilities [12]. This money was intended to be spent on helping to subsidize electricity companies, and since a person now is providing their own electricity production a small portion of that money can go to them to help them recoup some of the costs associated with installation and maintenance of the system. The loss of money going to an electricity utility provider, would encourage them to build massive solar projects which would make them eligible for many federal government funding and low to no interest loan programs that are already in place for commercial solar systems such as the Solar Investment Tax Credit (ITC) and the Electric Loan Program.
The Work-Study and Internship Program
Work-study and internship programs are designed to give college students an opportunity to complement their formal education with career related experience. The program that this report is proposing would allow students interested in an electrical engineering degree with an emphasis in solar technology, and who meet specific requirements, be able to work in the solar energy industry for a time of one year preforming manufacturing, installation, and maintenance duties in order to gain a scholarship and/or grant to help pay for their college education and living expenses that are incurred during the pursuit of their education. This program will not only provide financial assistance, but it will also provide students with valuable knowledge and insight into the solar energy industry, and preferential treatment when it comes to the college admission process. Upon completion of their college degree, students will be required to work for the company that issued the scholarship for a term of five years in order for the company to recoup their investment into the student’s training and education. |
Policy Paper
Use the link below to read our in depth analysis of solar power, and review our detailed policy recommendations.