AUSTIN – In a late night
session, last night the Texas Senate approved a major solar bill for
the second time, resuscitating a measure that appeared to have died
in the House the previous day. The bill, which creates a half-billion
dollar fund to help Texans install solar panels on their rooftops, is
expected to help create thousands of jobs and position Texas as a major
leader in the solar industry.
“To paraphrase the old song,
the sun last night was big and bright, deep in the heart of Texas,”
said Luke Metzger, Director of Environment Texas. “HB 1243 will help
kick start a solar revolution in Texas, creating thousands of good jobs
and protecting our environment.”
In April, the Texas Senate
approved SB 545 by Sen. Troy Fraser (R – Horseshoe Bay), which would
provide $100 million a year in funding to pay for up to one-third the
cost of installation of solar technologies. Combined with federal tax
credits of 30%, the bill would put solar within reach for thousands
of Texas families and could lead to the installation of up to 1000 megawatts
of solar within ten years. Texas currently has less than 10 megawatts
of solar capacity. Due to prolonged debate in the House over the controversial
‘voter id’ bill, SB 545 was not heard in time to meet a Tuesday
deadline, creating a serious setback for the bill. However, Sen. Fraser
was able to amend the bill to another related measure, HB 1243 by Rep.
Pete Gallego (D – Alpine), which sets minimum standards for utilities
to compensate consumers for surplus electricity generated by solar.
In an amusing twist, faced with their own midnight deadline, the Senate
unplugged their clock at 11:58, allowing debate on bills to continue
for another two hours.
“At the 12 1/2th hour, Senator
Fraser and Lucio took a Texas two-step last night by marrying the bill
guaranteeing fair market value for surplus electricity from solar panels
(HB 1243 by Gallego) with the bill that creates a statewide solar incentive
program for residents, small businesses and schools," said Cyrus
Reed, conservation director of the Lone Star Chapter of the Sierra Club.
"The new, improved HB 1243 should spur development of the solar
industry in Texas, save consumers money while generating pollution-free
electricity and create new green jobs."
As amended, HB 1243 also:
- Requires homebuilders
to offer solar as a standard option in developments with 50 homes or
more. Installing solar during construction reduces the upfront costs;
- Prohibits homeowners
associations from blocking solar;
- Creates a loan program
for solar on schools;
- Allows up to 70%
of the funds to be used for utility-scale solar projects;
- Allows the Public
Utilities Commission to extend the program for an additional five years
and another $500 million if they determine that a “substantial amount
of manufacturing of solar generation products located in Texas after
the initial five-year program”;
- Requires electric
coops to allow consumers to interconnect solar to the grid;
- Clarifies that consumers
will not have to register as a utility and that third party ownership
of solar is allowed;
- For the next two
years, requires retail electric providers to pay at least five cents
per kilowatt hour for surplus solar and four cents for other renewable
technologies and directs the PUC to determine a fair market price that
will become a new “floor” following the two years; and
- Creates a "Made
in Texas" program to certify and encourage Texans to buy locally
manufactured solar panels and other energy products.
"Last night Texas threw
its big hat into the solar ring with HB 1243, which will bring green
jobs and cleaner air," said Colin Meehan, Renewable Energy Specialist
for Environmental Defense Fund. "This could be the start of a beautiful
friendship between Texas and solar power."
“The Texas solar industry
is about to get hot,” said Tom “Smitty” Smith, Director of Public
Citizen’s Texas office. “The proposal that passed last night solves
two parts of the puzzle. The bill will put panels on rooftops
and payback panel purchasers for power produced beyond what is used
each month.”
The latest version of HB 1243,
which the House will still need to concur on or call a conference committee
to hash out the differences, includes policies initiated by a number
of legislators including Senators Fraser, Watson, Shapleigh and Van
de Putte and Representatives Gallego and Strama. The groups applauded
those legislators for their leadership.
On Tuesday, the Senate approved
HB 1937 by Rep. Mike Villareal (D-San Antonio). The bill allows local
governments to finance solar projects for homeowners and then get reimbursed
via property taxes over the course of 20 years, an innovative solar
financing model that can help eliminate the barrier that the high upfront
cost of solar causes for many Texans. Sen. Kel Seliger (R-Amarillo)
carried the bill over in the Senate.
"Perhaps the single greatest
impediment to widespread solar adoption is the high upfront cost,”
said Annie Carmichael, Federal Policy Director of Vote Solar. She continued
“Coupled with the new solar rebates, this elegant financing option will
remove that barrier making solar accessible to more Texans. We thank Representatives
Villarreal, Strama and Farias for being champions of this financial
mechanism throughout the session."
