Written by Rick Peters

Solar is Booming in Washington DC

Washington DC has been a leader in solar development for many years.  In the last 12 years, DC legislators have set aggressive targets, helped to streamline solar permitting, introduced a solar access rights law, and passed a landmark community solar bill to increase access to solar for those without an available sunny rooftop.   Many of these policies include mechanisms to help bring the benefits of solar to communities of low and moderate income.  The collaboration between the solar industry and DC policymakers has helped to build a robust market where solar installations are happening throughout the city, from downtown office buildings to churches, warehouses and residential rooftops across the city.   These policies and the resulting private investments are creating good jobs in the District and reduced energy costs for many of its residents.

Double Down

Since solar and clean energy have been delivering in DC, the stakeholders decided they wanted a more ambitious goal.  In the summer of 2018 the District started on a path to double down with their commitment to renewable energy by proposing the most aggressive renewable energy target in the country when compared to other state policies.  The new goal calls for 100% clean energy (5.5% solar) by the year 2032, with 10% solar by 2041.  Hawaii and California are the only other states that have 100% goals, but both of those targets are positioned for 2045, quite a few years later than DC. 

Other Benefits of the legislation

In addition to doubling the renewable energy target, the proposed legislation would provide a few more benefits to solar advocates.  The bill:

  1. Limits geographic eligibility over time to concentrate the solar development in the District or on the District’s grid
  2. Pulls the current solar carve-out schedule forward by two years to increase SREC demand
  3. Extends the solar carve-out from 5.5% in 2032 to 10% by 2041
  4. Addresses specifics about previously contracted (“grandfathered”) load that is exempted from the newest RPS
  5. Includes transparency requirements on the energy suppliers to provide insight into the exempted load and associated time periods
  6. Modifies Alternative Compliance Payment (ACP) schedules to require $300 ACPs through 2041
  7. Increases the shelf-life of an SREC from three to five years, increasing SREC price liquidity and stability.
  8. Introduces various reporting requirements on the Public Service Commission in order to keep the Council and the Public apprised of the progress of renewable energy development.

We’re in the Home Stretch

The Clean Energy DC Omnibus Amendment Act of 2018 was introduced in July 2018 and made its way through the Council over the fall with hearings and two unanimous votes of support on November 27th and December 18th.  In January, the bill was submitted to Mayor Bowser for her signature and she obliged on January 18thClick here to read the bill“.   The remaining hurdle is for approval by the US Congress within 30 legislative days.  The only way that Congress can stop this legislation is with a joint resolution and the President’s signature.  As a result, passage into law is considered by most to be inevitable and in fact we are seeing market pricing for SRECs responding accordingly.

Thank your Legislators

So now that the law is almost passed, it is time to prepare to deliver.  The industry has a lot of solar to build and we’re working hard at that.  As a solar advocate who cares about renewable energy in DC, please consider taking a few moments to call or write to your Councilmember to thank them for their support of Clean Energy DC Omnibus Amendment Act of 2018.  It’s always important to show our gratitude.

Thank you for your support of solar!

About Rick Peters

Rick Peters manages strategy, administration, sales and marketing for SES and is a currently the President of the Board of Directors for MDV-SEIA; the solar industry’s regional trade association. Rick holds a mechanical engineering degree from Marquette University and an MBA from the University of Maryland’s Smith School of Business. Prior to entering the solar industry, Rick’s 9-year executive leadership position in Sales and Marketing of an Information technology Services Company was instrumental in growing the firm of 14 employees to more than 100.