Focus on Energy Wind and Solar Incentives are Suspended: Please Stand up for Wisconsin’s Renewable Energy Industry

Tom Content’s article for the Milwaukee Journal Sentinel examines the repercussions of the Public Service Commission’s decision to suspend Focus on Energy incentives for solar and wind energy installations. Comments from RENEW Wisconsin are included in this article but please also see our website for key points to include in a comment to the PSC in docket 5-GF-191. By registering your concern over this chilling development you are standing up for Wisconsin jobs, 330-Wisconsin based wind and solar businesses, and clean, renewable energy.

By Tom Content 

Incentives that help homeowners install solar electric and solar hot
water systems in Wisconsin are being suspended for the second time in
three years. A recent decision by the state Public Service Commission means the
state Focus on Energy program will stop awarding the solar incentives
from mid-August through the end of the year.

Focus is an initiative that’s overseen by the state PSC as well as
the state’s utilities. Focus on Energy was created to to help utility
customers receive incentives to make homes and businesses more
energy-efficient and install renewable energy systems.

“We understand that there will likely be some frustration due to any changes,” Focus on Energy said in announcing the suspension.
“However, the Commission’s direction will help us create a clear plan
for 2014. We anticipate the residential prescriptive incentives for
Solar Thermal and Solar Photovoltaic to resume in January 2014.”

Focus has been providing incentives of up to $1,200 for solar hot water systems and $2,400 for solar power systems.

After Aug. 13, when the PSC is expected to finalize a recent decision
on the matter, Focus will no longer provide the incentives this year,
said Tamara Sondgeroth, director of operations at Focus on Energy in
Madison.

The stop-start approach to funding renewables is bad for small
businesses that were hurt when renewable incentives were suspended two
years ago, said leaders at Renew Wisconsin, a renewable energy advocacy group.

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Incentives for Solar and Wind Energy Suspended Again

PSC Delivers Another Blow to Beleaguered Renewable Energy Contractors

Immediate release — For the second time in three years, state of Wisconsin incentives for customer-sited solar and small wind systems will be suspended, a result of recent Public Service Commission (PSC) decisions affecting Focus on Energy’s renewable energy budget . The suspension will take effect August 13, according to Focus on Energy, and will run through the remainder of the year. Incentives for biogas and biomass installations are not affected by the PSC’s decisions.

The impending cut-off of solar and wind incentives follows an across-the-board suspension of  
renewable energy incentives that lasted one year before being lifted in July 2012. Focus on Energy is authorized to spend up to $10 million per year on renewable energy incentives. 

Through May 2013, Focus on Energy had spent or obligated a total of $3,048,580 for projects  
expected to be placed in service this year. The suspension ensures that overall renewable energy awards in 2013 will fall well short of the $10 million maximum. 

In 2012, the PSC established a two-tiered funding formula that allocates renewable energy 
incentives based on resource type. So-called Group 1 resources—biogas, biomass and geothermal (ground source heat pumps)–are eligible for 75% of program expenditures up to a maximum of $7,500,000 a year. Funding for so-called Group 2 resources—solar and small wind—cannot exceed 25% of renewable energy expenditures. 

Under this structure, outlays for Group 1 resources determine the overall funding level for  
renewables, even though up to $10 million is available in a given program year.As a result of the funding suspension, no renewable energy incentives will be available to residential customers until 2014. Residential customers account for approximately 60% of Focus on Energy’s program dollars.

The following represents RENEW Wisconsin’s reaction to the suspension of incentives for solar and wind energy systems. RENEW Wisconsin’s advocacy was instrumental in creating a renewable energy component to Focus on Energy.


“First, let’s not stop these incentives simply because the accounting is difficult,” said Executive  Director Tyler Huebner. “That may seem like the easiest fix for decision-makers in Madison, but this is going to cost jobs throughout Wisconsin, especially amongst the small businesses that do this work. Second, if the accounting is difficult, and we agree that it is, then let’s change it. The decisions to make the accounting difficult were made by the same three Commissioners just last year, and this recent decision only adds to the complexity.” 

“The disruption to solar and wind incentives will inflict measurable financial hardship on 
contractors operating here, and will result in a net contraction of sales and jobs. This decision will likely force these contractors to shift the focus of their business to other states that are doing a better job of supporting solar and wind.” 


“On several occasions before this decision, we communicated to the PSC the tenuous nature of the solar market today, and our best forecast of the likely impact from a disruption in the flow of incentives. By all appearances, the views of Wisconsin’s solar contractors were disregarded.”
 

“Yesterday, we sent a letter to the PSC asking it to reconsider this decision. This Friday, we will file comments with the PSC regarding future Focus on Energy planning, and our primary goal is to simplify the provision of incentives going forward. In our view, the current structure has proved to be an administrative nightmare, and this latest decision will worsen this already bad situation.”
“Finally, we don’t believe that providing policy support for the advancement of solar energy should be a partisan issue. It certainly isn’t in Georgia, where that state’s all-Republican utility commission ordered Georgia Power to acquire nearly 800 megawatts of solar by the end of 2016, effectively tripling what the state’s largest electric utility had already committed to provide.”
“It’s time for Wisconsin regulators to see the light on solar and let it drive our state’s economy forward,” Huebner said.

Update on RENEW Initiatives

In a presentation by Don Wichert, RENEW executive director, reported on the following RENEW programs at an informational meeting and social gathering in Stevens Point, September 13, 2012:

  • Evaluation of utility performance on renewable energy; 
  • Clean Energy Choice, which would allow third parties to sell heat and power to customers on premise; 
  • Net metering; 
  • Focus on Energy; 
  • Interconnection streamlining; 
  • Restoration of We Energies’ renewable development fund; 
  • Wind initiatives.

Update on renewable initiatives in Wisconsin, Polk Co. Energy Fair, Aug. 18

Don Wichert, executive director of RENEW Wisconsin, will update RENEW members and other fairgoers at 1:00 pm, August 18 at the Polk County Energy Fair.

The initiatives will benefit any person or business wanting to install a renewable energy system, as well as those already installed.

Don will discuss RENEW’s work to:

  • Build a coalition in support of our Clean Energy Choice initiative, which would allow customers to purchase renewable energy from systems located on their premises and owned by third parties;
  • Represent renewable energy stakeholders at the PSC and with the Focus on Energy administrators to offer proactive options for the renewable energy program;
  • Improve utilities’ outdated interconnection requirements.

RENEW is also actively engaged in other initiatives to expand the clean renewable energy marketplace in Wisconsin.

Thanks to Jeff Peterson for assisting RENEW and co-sponsoring the presentation.

RENEW influences decisions of Focus on Energy

RENEW Wisconsin will continue to advocate for Focus on Energy to spend the $10 million per year allocated for renewable incentives.

We intend to keep a close watch on how the Focus administrators spend the money, and we told them so. These funds are being collected from rate payers this year, so Focus should spend as much of the money this year as possible. Simple!

RENEW effectively advocated for Focus on Energy (Focus) to reinstate incentives for distributed renewables since the non-residential incentives were suspended in July of 2011. RENEW organized members and other stakeholders to communicate this message to the Public Service Commission and Focus. RENEW’s advocacy led Focus to roll out the renewable programs in July.

Additionally RENEW solicited input from the renewable community, met with the Focus administrators, and provided suggestions in early June on how the Focus funds should best be used. Focus accepted and incorporated the majority of these suggestions in the Focus renewable programs that were launched in early July.

RENEW continues to advocate on behalf of the renewable energy community with the Focus administrators. We asked Focus to drop the need for installers to be licensed plumbers and electricians; to reconfigure the need for a building permit before installation; to clear up whether solar systems could be ground mounted; and, to reduce the minimum incentive for solar and wind installations in the Business Program RFP. Once again, Focus administrators accepted the majority of these suggestions.

Focus also addressed the questions received from RENEW and others in a list of frequently asked questions for residential systems at Focus FAQs.

Be aware that Focus has limited funds for residential solar projects. Focus will provide weekly updates on the level of funds available through the renewable energy program Web pages at Focus funding updates.

Business renewable projects will be considered for funding after a submission due date of August 29, 2012. FAQs on this RFP were issued on July 23, 2012.

Please continue to provide your comments and suggestions to RENEW and to Focus on how the renewable program should be managed within the budget constraints outlined by the PSC.

By working together, we can have the best program possible. Please support RENEW with a membership or donation at Join Today!