House Lawmakers Raise Cap to Expand State's Solar Capacity

Framingham State Representative Tom Sannicandro joined lawmakers last week in approving a bill that would raise the cap on solar net metering by two percent, expanding opportunities for solar development projects, long stalled in 171 municipalities across the state, before a valuable federal tax credit is set to expire in late 2016.

Net metering has been instrumental to the rapid growth of Massachusetts’ solar industry, by crediting system owners for the excess electricity they add to the regional grid at retail rates, incentivizing development and offsetting consumption costs.

Currently home to over 391 solar companies that employ an estimated 12,000 workers, Massachusetts ranked fourth nationwide for the amount of solar capacity installed in 2014 and has the sixth highest total solar capacity in the nation, according to a 2015 report by the Environment Massachusetts Research and Policy Center.

The House’s proposal would raise the caps on public and private installations to 6 percent and 7 percent of peak electrical usage respectively, accommodating ongoing development to just within reach of the state’s goal of installing 1,600 megawatts of solar capacity by 2020.

“Lifting the net metering cap and expanding opportunities for renewable energy development is essential to achieving our long-term clean energy goals,” said Rep. Sannicandro, a Democrat from Ashland who represents about half of Framingham. “Increasing the state’s solar capacity will strengthen our economy, enrich our environment, and propel this indispensable industry forward.”

Under the House’s long-awaited proposal, solar developments installed before the state reaches its 1,600 MW goal would be eligible for net metering returns at retail rates for 20 years, with later projects reimbursable at wholesale rates. The bill also instructs the Department of Public Utilities to develop a reasonable minimum bill to charge solar-producing customers to help offset the cost of infrastructure maintenance and solar generation.