OPINION: Olympia needs to exempt government buildings, properties from the expiration of net metering credits

Washington State’s net metering regulations require that the solar arrays for all buildings that have installed (or are installing) solar ensures that the arrays are designed for the exact electrical load the building uses over the course of a year. Electric utilities pay their customers with solar for excess power produced with a credit on their account, but any unused credits expire on March 31st. It’s time for the state legislature to exempt all government buildings and agencies, at every level of government, from the expiration of the solar credits so that they have another revenue source available that also reduces the carbon footprint of government services.

Exempting government owned buildings and properties (for example, parks or park & rides) front he expiration of credits is a fiscally sound way to allow the state, county, and municipal governments to directly tackle their goals for reducing carbon emissions while also allowing them to add an additional revenue stream that isn’t a new tax. Even if the government were to take out bonds to pay for the installation of these arrays, they could use the revenue from the energy production to pay those bonds off. And then once the debt has been retired, the revenue can be added to fund the budgets of the agencies, departments, universities, colleges or districts that installed solar.

This proposed exemption means that instead of the unused credits expiring on March 31st, the utilities would cut a check to the government for the power produced on its properties.

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Net metering is the agreement between the electric utility and their customers regarding solar panels that installed on the roof of their properties. The panels produce power for the property and then any excess power generated is sent back into the electric grid, and the customer receives a credit on the account for the power that is sent back into the grid. As a result, the typical net metering customer builds up a sizable credit on their account during the summer as production far exceeds their usage. Then that credit is applied to their winter bills when their usage exceeds production.

In order to prevent private, and public utility companies from going bankrupt, these credits expire on March 31st. This credit expiration forces all solar installations to be designed for the property’s historical and/or expected electrical usage.

While the roofs of the buildings are the typical location for solar panel installation, the potential power production from parking lots is one that has been mostly ignored in this state – I suspect it’s because of the current regulations regarding credit expiration. Covering parking lots in solar has the added benefit of reducing the urban heat island effect, and it prevents cars parked in those lots from baking in the sun. Solar covered parking structures will produce power all year even in the cloudier winter months with less daylight while still producing a profit because there is minimal electrical usage involved in parking structures, no matter the time of year.

The potential biggest benefactor will be small towns in Washington’s rural areas that do not have the tax base to fully support the government services that their residents need. But it’s not just the rural areas that will benefit, a reliable revenue source that isn’t tied to a tax increase will help all governments reduce the burden on their residents while increasing their quality of life.