Solar for rural communities
First, tell us a little bit about your organization and what it is trying to do in Virginia.
Aaron: United Solar Neighbors of Virginia is a non-profit that is advocating for a democratic, two-way energy system that benefits local communities, no just big utilities. We do that in three ways. First we help local communities organize to make it easier and cheaper to install residential solar systems. Second, we are increasingly helping communities think about how they can cut costs by installing solar on community structures such as schools, fire houses etc. Third, we advocate for government policies that reflect not just the desires of utilities and big companies, but the needs of individuals and local communities. This isn’t easy. There is a lot of money in energy production and distribution, and the big boys lobby fiercely to maximize their profits.
Not so many years ago, solar was derided as too expensive and not very practical. A lot has changed. How does the cost of solar stack up relative to other energy sources today? And where is it projected to be in 10 years?
Aaron: The decline in the cost of solar energy over the past decade has been extraordinary. The cost of the panels themselves has dropped the most, as much as 90% by some estimates in the last 10 years. As a result, new commercial-scale solar energy production is already cheaper than new coal and gas production. And that despite the fact that coal and gas production still benefit from government subsidies, even though they've been around for much longer! Coal and gas really have an unfair advantage, not only because of the subsidies (mostly hidden in the tax code) but also because the damage to our environment they create is shouldered not by them but by the taxpayer.
Residential solar has also made enormous strides. A typical homeowner has a 9-12 year payback timeframe on a solar installation, but the panels are good for 25-30 years. So that means 15-20 years of free electricity! That’s an incredible return on investment. Moreover, there are more ways to finance a solar installation these days, so more people have access to it.
Not only are solar’s costs likely to keep dropping over the next decade, but we will certainly see battery backup systems finally attain real cost-effectiveness. That could be a game-changer, especially for rural areas where people need a reliable energy back-up system.
There is, however, a lot of hesitancy in rural areas about the rapid expansion of commercial-scale solar. People worry about its impact on the view shed, the loss of farmland, even negative environmental impact.
Aaron: We have to find the right balance here. There have indeed been some companies that have barged into the commercial market -- designing massive solar installations with little regard to their impact on the local community. That’s a big mistake. The community has to feel that it is getting real benefits. In turn, some counties have over-reacted to these horror stories by going overboard with restrictions.
The truth, however, is that a commercial solar installation that is properly designed and sited brings powerful benefits to a community. For example, solar installations can be designed to actually support pollinators and cattle grazing and proper buffers can protect viewshed. Just as importantly, farmers get new income that many of them desperately need. Farmers have always had to be smart and adaptable in order to survive – in this case they are merely farming the sun rather than another crop. And let’s not forget that a solar farm also puts tax dollars into the local community. In short, commercial-scale solar should be a positive force for rural communities, one that county governments should be encouraging rather than throwing up barriers too.
Critics contend that solar industry jobs are mostly non-union and have lower salary and benefits than those in other energy industries. Can a worker raise a family on an average salary in the solar world?
Aaron: Absolutely! Solar industry employment is growing at a rapid pace, which is not surprising given that solar is one of the fastest growing industries in the country. Just as importantly, it is maturing as an industry. A decade ago, most solar installers were a couple of people working out of their garage. Today, many of them have 200-300 employees, including accountants and other office staff, not just guys climbing on roofs. As the industry matures, salaries are inevitably climbing too. These companies know they have to pay more to get good people. And some companies are unionizing as well.
In contrast, coal mining employment is not only much smaller than solar, but it continues to shrink. And then there are the health problems that many veteran miners suffer, which solar workers do not. What price do you put on that?
What is the future of residential solar? In the past, the big electric utilities have tried to protect their traditional energy production from competition from solar. Now, they have embraced solar, but only for large commercial operations that they control themselves.
Aaron: It is true that traditionally utilities tended to view residential solar as a threat and did their best to constrain it. And they were powerful, effective lobbyists. I remember when United Solar Neighbors started in VA in 2014, we were repeatedly told that we couldn’t expand solar because “Dominion Electric won’t let you”.
A lot has changed, however. First, Virginians really want residential solar. There is no going back. Moreover, the smart utilities have figured out that residential solar can be a win/win. As residents install not only panels, but battery systems and then buy electrical vehicles, their homes become virtual power plants that utilities can draw from in peak electricity periods. So the future role for utilities is to be not just a supplier of energy but a facilitator for energy-related services. This is good for the country too – after all when filling up my electric vehicle, I would rather have Dominion be my “gas station” than the Saudis. The point is, the energy grid is dynamic, so viewing solar owners as a way to help the grid helps the utilities, and ultimately their customers.
The infrastructure bill that Congress is voting on this week has provisions for promoting solar, and the Democrats’ proposed budget legislation reportedly has even more. What can rural Virginians expect in terms of new government support for energy efficiency?
Aaron: We don’t know all the details yet. However, we and other solar advocates are hopeful that Congress will extend the tax credit for residential solar installations and raise it from 26% to 30% of installation cost. In addition, there is talk of making solar more affordable on the front end by turning the tax credit into some kind of up-front cash payment. That would be a big win.
You just criticized subsidies for coal and gas. Why is it ok then to give a tax credit for residential solar?
Aaron: There are two reasons. First, oil and gas have long benefitted from an array of tax benefits – from master limited partnerships to accelerated depreciation for drilling to cheap access to drilling on public lands – that collectively amount to a massive subsidy. And those subsidies mainly benefit just a few large companies. In contrast, the residential tax credit directly benefits regular taxpayers.
Secondly, our government has historically invested in emerging technologies that benefit the country. That is precisely what solar is today. In contrast, the coal and gas industries are respectively 200 and 100 years old. What interest does the American taxpayer have in subsidizing old industries -- and ones that are massively polluting our environment?
For rural areas, a key priority is support for solar installations for farms and small rural businesses. Although the Department of Agriculture has long had a program to financially support solar installations for farms and businesses in rural areas, the application process is so complicated that few take advantage of it. Is that likely to change?
Aaron: The USDA’s REAP program is still the most important program for supporting solar in rural areas. We and other solar advocates are pushing at the federal level to triple its size and especially to make it more flexible. Virginia Representative Abigail Spannberger is a key advocate and sponsor for this approach.
What can be done to help lower income families get solar?
Aaron: That’s a great question. The fact is that everybody likes to talk about helping lower and moderate income families, but few are actually doing it. So, at United Solar Neighbors we asked ourselves what we could do concretely. And we decided to partner with a Virginia non-profit called GiveSolar, that works with Habitat for Humanity to put solar panels on Habitat-renovated homes. It's really a unique model, one that combines old-fashioned barn-raising style volunteerism and fund-raising to put solar panels on the roofs of low income families. The families don't get it completely free -- they pay back a small amount over time. That money goes into a Solar Seed Fund that will then help other familes get solar. Give Solar is pioneering the model in the Shenandoal Valley right now, and we will be helping them expand it all around Virginia. If any of your readers want to help, their tax-deductible donation to GiveSolar will help it expand the model across Virginia!