Wisconsin’s Proposed Shift in Solar Energy: A New Bill May Change the Landscape
Wisconsin is on the brink of a significant transformation in its approach to solar energy. A new legislative proposal seeks to diversify the state’s solar offerings by enabling the development of community solar projects beyond the current utility and cooperative frameworks.
The proposed bill aims to introduce “solar gardens,” small-scale solar initiatives spearheaded by farmers and developers. Residents in proximity to these solar gardens would have the opportunity to subscribe and receive credits on their electricity bills through entities known as “subscriber organizations.”
The implementation and regulation of this program would fall under the jurisdiction of the Public Service Commission of Wisconsin. They would be responsible for creating the necessary guidelines, while utility companies would be mandated to apply billing credits to participants, according to a Legislative Reference Bureau analysis.
The bill, backed by State Sen. Patrick Testin, R-Stevens Point, and State Rep. Scott Krug, R-Rome, garnered both support and opposition during a recent public hearing. Proponents include the Wisconsin Farmers Union, RENEW Wisconsin, and the conservative Wisconsin Institute for Law and Liberty. However, the initiative faces opposition from electric utilities, cooperatives, and several trade unions.
Highlighting the widespread adoption of similar legislation in 24 other states, Testin emphasized the potential benefits for individuals without suitable property for solar panel installation. “This change will open a new market sector and high energy industry, attract economic investments in Wisconsin, create local jobs, drive innovation and competition, and ultimately save consumers and small businesses money on their energy bills,” he stated.
Rep. Krug noted previous unsuccessful attempts to pass community solar legislation but expressed confidence in the current proposal, describing it as a “small-scale, locally approved alternative” that empowers communities to tailor solutions to their needs. He added, “It also allows farmers to lease small, unused parts of their land, maybe a 10- to 20-acre parcel that’s less suitable for crops.”
Despite these potential advantages, the bill has its critics. Tyrel Zich, Xcel Energy’s regional vice president of regulatory policy, argued that the bill could inadvertently increase electricity costs for non-subscribers, as they might bear the financial burden of integrating community solar into the grid. “I know a number of you are business owners, when your revenues fall because you have to give your customers credits, you have to make up that revenue somewhere,” Zich explained.
Other utilities, including Alliant Energy, Madison Gas and Electric, and WEC Energy Group, have also voiced their opposition. In contrast, Will Flanders from the Wisconsin Institute for Law and Liberty defended the bill, disputing claims about cost-shifting and highlighting the broader benefits of distributed solar generation. He argued, “More importantly, utilities consistently undervalue the benefits of distributed generation, such as avoided transmission line cost, reduced congestion, peak time production and the use of private capital instead of ratepayer dollars.”
Original Story at www.wpr.org