Moving to block competition, Dominion files its own sort-of-green energy tariff

Just a couple of the great things that count as “renewable energy” in the Virginia Code.

Dominion Virginia Power has filed for permission from the State Corporation Commission (SCC) to offer a 100% renewable energy tariff to commercial and industrial customers with peak loads of over 1,000 kilowatts. In a footnote, Dominion states that it intends to propose a similar tariff for residential customers in the future. The case is PUR-2017-0060.

Customers who want only carbon-free energy like wind and solar will likely be disappointed. Dominion intends to use a “portfolio of resources” that will include “dispatchable resources”—i.e., hydropower and stuff that can be burned. Dominion promises the sources it uses will meet Virginia’s definition of renewable. That’s not reassuring. Under Virginia law, renewable energy can include sources like landfill gas and municipal solid waste, as well as “biomass, sustainable or otherwise (the definitions of which shall be liberally construed).”

Dominion’s filing comes scarcely one month after an SCC decision confirmed the right of independent renewable energy provider Direct Energy to offer its products to Dominion customers, but only so long as Dominion lacks its own green tariff for those customers. The SCC order (explained here) made clear that under Virginia law, a competitor like Direct Energy would be blocked from taking on new customers once Dominion has an approved tariff.

Dominion’s filing looks suspiciously like an effort to cut Direct Energy off at the knees. If the upstart competitor follows through with its plans to offer Virginia residents a renewable energy option, Dominion will surely propose a residential renewable energy tariff. SCC approval of Dominion’s tariff would shut out Direct Energy, which is targeting only residential consumers for its product. Under the language of the Code, it does not appear to matter whether a competitor can offer a better product, or a better price.

For the moment, Direct Energy is not backing down. The company has set up a web page to gauge the interest of residential consumers while it deliberates its next move. Ron Cerniglia, Director of Corporate and Regulatory Affairs for the Mid-Atlantic Region, told me he thinks the timing of Dominion’s filing is “curious,” given that “Dominion has had ten years to file a renewable energy tariff and hasn’t. We’re concerned about the implications of limiting choice for consumers. We don’t know if the move will actually offer a choice consumers want, or if it is just closing doors on others.”

Indeed, ten years have passed since Virginia enacted its current utility law, which includes the right of a customer to “purchase electric energy provided 100 percent from renewable energy” from another supplier if its own utility isn’t offering it. During most of that time, Dominion has sold Renewable Energy Certificates to customers under its “Green Power Program,” but it has never offered residential customers an opportunity to buy actual renewable energy. (See “Is a Green Power program worth your money?”)

This is slated to change as the utility works with the solar industry on implementing a new solar option under legislation passed this year. However, the new law specifies that the solar option will not count as a tariff for “electric energy provided 100 percent from renewable energy,” so it does not block competitive offerings like Direct Energy’s.

Dominion was agreeable to excluding the solar program because it interprets the Code’s reference to “electric energy provided 100% from renewable electricity” to mean the electricity must come from renewables 100% of the time, an interpretation almost no one else shares.

This seems to be the reason Dominion intends to include carbon-emitting sources into its renewable energy offering, even though it’s safe to say there are no customers clamoring to get their electricity from garbage or the clear-cutting of forests. It also means the new tariff will likely be priced higher than one that included only solar, because electricity from biomass is more expensive today than harvesting the sun. (No word from Dominion on why it doesn’t just assign a portion of its pumped storage capacity to serve an all-wind-and-solar product.)

But if customers want only wind and solar, they are also likely to be disappointed in Direct Energy’s product. Cerniglia says his company includes baseload sources like “cleaner biomass” in its renewable energy product to provide 24/7 power. He estimated that the initial mixture would consist of “50% to 60% municipal waste biomass (Pennsylvania and Virginia sourced) and 40% to 50% wind (Pennsylvania sourced) . . . We are also committing to not utilize virgin wood / clear cut wood biomass in our product mix at any time.”

Direct Energy also has not determined the pricing of its product yet, but Cerniglia said it would be “equal to or lower than what Dominion Virginia Power residential customers pay for ‘brown’ power.”

Perhaps most importantly, he noted, “The benefit of a competitive market is that customers can leave us at any time. They’re not captive.”

Shareholder vote shows growing unease over Dominion’s role in climate change

Dominion 2017 Ped Bridge

Black curtains are visible inside the pedestrian bridge over Marshall Street leading to the Richmond Convention Center (background on the left). They were installed to block shareholders’ view of protesters lining the sidewalk outside Dominion Resources’ 2017 shareholder meeting last week. Photo credit: Chesapeake Climate Action Network.

A stunning development occurred during Dominion Resources’ annual shareholder meeting in Richmond last Wednesday. But as shareholders, board members, and company officials left the meeting, no one yet knew about it. What’s more, the Richmond Times-Dispatch’s coverage also missed it, focusing instead on the company’s name change to Dominion Energy. (To its credit, the Norfolk Virginian-Pilot did break the story two days later.) Dominion’s hometown newspaper didn’t just bury the lede; it overlooked it altogether. And therein lies an interesting tale.

What was so stunning? Simply this—some 48 percent of Dominion shares that were voted supported the resolution of a major shareholder, the New York State Common Retirement fund, calling on the company’s board of directors to report on how the company will deal in coming years with the fact that the world needs to reduce greenhouse-gas emissions to an extent consistent with limiting global warming to 2 degrees Celsius. The resolution’s full text is available on p. 60 of Dominion’s 2017 proxy statement.

Understanding why the vote on this resolution is stunning requires some context.

Shareholders have been submitting resolutions for at least eight years urging Dominion’s board to face up to global warming and the company’s role as a major carbon polluter contributing to that warming. In the past, some resolutions have gotten favorable votes as high as 24 percent, while others have been in single digits. Many large investors routinely follow the company board’s advice, and Dominion’s board always recommends a “no” vote on any environment- or climate-related resolution. Getting favorable votes is an uphill battle when a company’s powerful board is working against you.

That’s why the 48 percent vote for the retirement fund’s resolution this year is so huge. The total value of the nearly 198 million shares voting for the resolution was $15.5 billion, based on Dominion’s May 9 closing stock price.

“The vote by Dominion’s shareholders speaks volumes,” said New York State comptroller Thomas P. DiNapoli, trustee of the state’s retirement fund. “This is a wake-up call for the company to be responsive and explain how the Paris Agreement’s worldwide effort to rein in global warming will impact its business. Shareholders need to know what steps Dominion is prepared to take to address climate risk.”

But there’s still more to the tale. The stunning vote spike didn’t become known until hours after the meeting, and even then only to those who knew where to find the results and had a calculator handy to compute the vote percentages. That delay was no accident, but the result of Dominion’s efforts to keep the news from coming out during the meeting.

Until a few years ago, Dominion announced vote totals on shareholder resolutions during each meeting. That’s easy enough to do, since virtually all votes are cast in advance, and literally just a handful are cast on paper ballots collected during the meeting. But as favorable vote percentages on shareholder resolutions crept upwards over the years, Dominion discontinued the practice of announcing vote counts during the meeting. Instead it now reports only whether the resolutions got more than 50 percent of the vote. So this year it was simply announced during the meeting that the four shareholder resolutions on the ballot failed to get a majority of votes. End of story; nothing more to see here, folks.

By law, however, Dominion must report the actual shareholder vote totals to the Securities and Exchange Commission for public disclosure. It did so in the afternoon following the meeting, and put its SEC filing on the company’s website. Those who thought to look for them and knew where to look could find the vote results. Then, with a calculator or spreadsheet they could compute the vote percentages.

Dominion’s quiet move to prevent shareholders (and reporters) attending the meeting from learning the vote totals until later in the day is part of a pattern of subtle and not-so-subtle company efforts to tightly control messaging at its shareholder meetings. The control efforts have evolved each year as more shareholders have questioned the company’s environmental and climate record during meetings, and as demonstrators have begun to appear regularly outside to protest.

The company’s control effort reached somewhat absurd levels this year, as shareholders had to show their drivers’ licenses and admission tickets at four separate checkpoints before gaining entry to the meeting. As shareholders crossed an elevated pedestrian bridge across Marshall Street from the parking garage to the Richmond Convention Center, they found black curtains temporarily set up on floor stands to line the glass walls of the bridge, serving no purpose but to block any views of demonstrators on the street below. Then, when shareholders descended an escalator to the hallway outside the first-floor meeting room, they also found a long line of temporary stands of more black curtains. They were about eight feet high—just enough to block views through the wall of windows facing Marshall Street, where protesters had gathered on the sidewalk. This served to cast a bit of a funereal pall over the hallway, as shareholders drank coffee and ate Virginia ham biscuits before the meeting.

But enough about the voting process and window curtains. Understanding the true significance of the big vote spike for the retirement fund’s climate resolution requires a brief look at how Dominion addresses, and fails to address, the climate crisis. Dominion occasionally talks up its reductions in carbon intensity in electricity generation over the years. That’s the amount of carbon dioxide emitted per unit of electricity. And the company touts new solar projects, which are growing, but not nearly fast enough to catch up with Virginia’s neighboring states or to reduce carbon emissions on the needed timetable.

But Dominion has plans to increase its total carbon-dioxide emissions over the next fifteen years. And what the company never, ever does, is link its plans and its planned future greenhouse-gas emissions to what climate science tells us is needed to keep global warming to no more than 2 degrees Celsius. Indeed, as I wrote last year, Dominion executives studiously avoid even mentioning climate change in public, even when the topic is right in front of them, begging for attention. George Mason University climate-communication expert Edward Maibach and coauthors reported last year that silence on climate change can lead to more silence, in what they call a “climate spiral of silence.”

Meanwhile, while publicly silent about climate, Dominion still belongs to and supports the American Legislative Exchange Council (ALEC), which has a long track record of misinforming state legislators about climate science and working to block meaningful action to reduce greenhouse-gas emissions.

That’s why the 48 percent vote for the retirement fund’s resolution is so huge. Shareholders owning nearly half of the Dominion shares that were voted last week told the company’s board of directors and management that they need to start publicly talking and seriously thinking about climate change, and to explain how they will operate a business that is consistent with the need to keep global warming under 2 degrees.

Perhaps Dominion’s board believes, as at least one Dominion executive does, that climate change is an overblown issue that is pushed by “warmists,” that there’s been no global warming for fifteen years, and that global warming (which by the way isn’t happening) may not be human-caused. Such a belief would allow the board to ignore this shareholder vote, and assume that in future years the resolution will never get a majority vote because climate change concerns will go away as more people see climate change as a hoax. But maybe Dominion’s board, or at least a majority of its members, know better and will listen to the wake-up call delivered to them last week.

As I left the meeting I passed again by the black curtains in the convention hall windows and on the pedestrian bridge over Marshall Street. Just as Dominion used curtains to block views of protesters, its executives seemingly wear blinders to avoid looking at (and talking about) climate change. It’s past time for the blinders to come off and for Dominion’s management and board to look around at the wider world out there.

On May 22, Seth Heald will receive a master of science degree in energy policy and climate from Johns Hopkins University. His final paper in the program was about climate silence and moral disengagement. He is a Dominion Energy shareholder, and chair of the Sierra Club’s Virginia Chapter.

Arlington Creates Legal Authority for Solar-on-Schools Power Purchase Agreements; Plans October RFP

By Will Driscoll

Clearing a legal hurdle that may affect other Virginia school systems, Arlington Public Schools has created a new type of purchasing authority so it may enter into power purchase agreements (PPAs) for solar power.

Arlington’s School Board created that authority by amending its purchasing resolution at its April 20, 2017 meeting, by unanimous vote.  The school system staff plans to issue a request for proposals (RFP) for solar power in October, and complete its first PPA project by September 2018, according to a draft timetable.

 
The Arlington School Board voted unanimously to create the authority to enter into solar power purchasing agreements, on April 20, 2017.  From left: Tannia Talento, Barbara Kanninen, Nancy Van Doren, James Lander, and Reid Goldstein.  (Photo credit: author)

Arlington officials concluded that the previous version of its purchasing resolution, which satisfied the requirements of the Virginia Public Procurement Act, did not permit procuring construction or capital projects through “alternate methods” such as power purchase agreements (PPAs).

Arlington Public Schools (APS) officials determined that such alternate methods of procurement must meet the requirements of Virginia’s Public-Private Educational Facilities and Infrastructure Act of 2002 (PPEA).

Specifically, according to the approved amendment, “Section 56-575.16 of the PPEA requires that APS may not consider any Unsolicited PPEA Proposal nor solicit PPEA Bids or Proposals for a Qualifying Project until APS has adopted and made publicly available guidelines that are sufficient to enable APS to comply with the PPEA.  These Guidelines are adopted by the [School] Board for the purpose of satisfying that requirement.”

APS purchasing office staff and legal counsel prepared the proposed amendment, modeling it on procedures outlined in the PPEA.  The new provisions, now incorporated in the APS Purchasing Resolution, call for competitive bidding on any PPA project, and require School Board approval before any PPA agreement is signed.

“This is a really big deal for us,” said school board member Barbara Kanninen.  “We are opening up the opportunity to have solar power for Arlington Public Schools.  That’s really forward thinking, it’s smart energy use and I’m fully supportive of this.”

School board member James Lander noted the opportunity “to walk the walk that we talk when we talk about being a progressive environment, a forward-thinking community.” He added that solar on schools “will allow instructional opportunities for our students.”

In public comments prior to the vote, Tim Whitehouse, executive director of Chesapeake Physicians for Social Responsibility, said that the group’s 150 members in Arlington “strongly support the effort of the Arlington School Board to enter into power purchase agreements for solar.”  He added, “We’ve seen in schools where this happens, children get interested in renewable energy and the school systems develop programs that help educate the kids.”  Will Driscoll (author of this article) of Arlington 350 noted that prices for installed commercial solar declined 20 percent in 2016, creating an opportunity for the school district to save money with solar.  Noting that the school board must approve any PPA agreement before it may be signed, and could reject any agreement they find unsatisfactory, he said “we have nothing to lose, and much to gain.”

The new provisions provide an opportunity for solar contractors to submit an unsolicited proposal to APS, along with a proposal review fee of $2,500.  Any such proposal may prompt the school district to undertake a solar project, in which case the school district would solicit competing bids, in accordance with PPEA guidelines.

The provisions call for APS to hire “qualified professionals” from outside the APS staff to review all solicited proposals.  These professionals may include an architect, professional engineer, or certified public accountant.  APS will also hold a public hearing prior to entering into any PPA agreement.

To date, Arlington has installed a 497 kilowatt solar system on Discovery Elementary School and a 90 kilowatt system on Wakefield High School, both through outright purchase during the construction phase for each school.

Direct Energy wins right to sell renewable energy in Virginia, but there’s a catch

Direct Energy may have just won a Pyrrhic victory in its bid to sell renewable energy to Virginia residents. The State Corporation Commission ruled last week that the company can market 100% renewable electricity to Virginia customers of Dominion Virginia Power and Appalachian Power, but only as long as the utilities aren’t offering it themselves. Once they do, Direct Energy can continue to serve existing customers but won’t be able to sign up new ones.

The ruling makes it harder for Direct Energy to enter the residential market in Virginia. On the other hand, Direct Energy appears to have won a round on a second issue involving sales to large (over 5 megawatts in demand) commercial and industrial customers. The SCC ruled that these customers don’t have to give five years’ notice before they can switch back to their utility from a renewable energy provider like Direct Energy, as they would have to do if they were not buying renewable energy.

This is a significant win for Direct Energy’s ability to offer renewable energy to large customers, since Dominion’s position on the five-year notice requirement could scare off customers worried about being left without a supplier if Direct Energy were to leave the market. However, that part of the SCC’s order is under review in response to a motion for reconsideration filed by Dominion on Tuesday, so I won’t address that further here.

Direct Energy is a Delaware-based company currently licensed to sell natural gas in Virginia as a competitive service provider. Last August the company filed a petition for declaratory judgment (PUE-2016-00094) asking the SCC to clarify its rights under Virginia law to sell renewable energy to customers of Dominion Virginia Power. The SCC brought in Dominion and Appalachian Power, and Southern Environmental Law Center (SELC) intervened on behalf of environmental groups Appalachian Voices and Chesapeake Climate Action Network.

Section 56-577 (A)(5) of the Virginia Code explicitly allows sellers of 100% renewable energy into the territories of the state’s monopoly utilities if those utilities themselves aren’t offering renewable energy to their customers. Currently, neither Dominion nor Appalachian Power offer a tariff for renewable energy. That means the door is wide open for anyone else to do so.

But that open door is merely a tease, as the Commission’s order just confirmed. All Dominion or APCo has to do is jump in with its own product, and the door shuts in the face of the interloper. Once the SCC approves a utility’s program, Direct Energy can continue selling to any customers it has already signed up, but it won’t be able to sign up any new customers.

It can take months or years of marketing for a third-party supplier to build up enough of a customer base to make the whole effort worthwhile, so the SCC’s ruling makes the Virginia residential market much less attractive.

Direct Energy and the environmental groups had argued that once a competitive service provider got approval to sell 100% renewable electricity in Virginia, it ought to be able to continue signing up new customers, even once the SCC had approved a competing product from the incumbent utility. As the company explained in its Petition:

It would be illogical for the Virginia General Assembly to prohibit Direct Energy or any competitive service provider from continuing to market and serve additional customers once Dominion Virginia Power begins to offer a 100% renewable energy tariff. No retail business can survive if it cannot do business with new customers. This is certainly true in the retail energy market, in which customers move on and off a system with regularity, reacting to price signals and relocating in and out of utility service territories. Consequently, it is most reasonable to interpret Virginia Code § 56-577 (A) (5) (b) to allow Direct Energy to continue to serve additional customers to the class of customers to which it is marketing at the time that the Commission approves a Dominion Virginia Power 100% renewable energy tariff.

Unfortunately for Direct Energy, the Code was written to protect Virginia utilities from competition to the greatest extent possible consistent with also making them look good. What is logical and reasonable to anyone running a business doesn’t enter into it; nor, for that matter, does the best interest of the buying public.

The SCC’s order is a win for Dominion and APCo, but a loss for customers who have waited ten years for their utilities to offer them renewable energy. Both Dominion and APCo offer what they call “green power” but are simply sales of renewable energy certificates as an add-on to regular “brown” power.* Even if the utilities now gin up a their own renewable energy product, consumers would be better off having choices.

After all, the Virginia Code doesn’t say a utility program has to be better or cheaper than the one offered by a competitive service provider like Direct Energy. Indeed, some consumers have already expressed concern Dominion might close the door on Direct Energy with a product that meets the Virginia Code’s broad definition of renewable energy but is distinctly inferior.

“My worry is that Dominion will offer a “100% renewable” program that is biomass, hydro and other things that aren’t really zero carbon, but still slide by,” says Ruth Amundsen, a solar advocate in Norfolk. “And then Direct Energy would be out.”


*Legislation passed this year will allow customers to buy electricity generated from solar facilities from their utilities. The program is styled “community solar,” but it looks like it would satisfy the statutory definition of a sale of electricity generated from 100% renewable energy. However, a provision of the bill, added at the behest of SELC, states that it will not be considered such a product.

Why, you might ask, would Dominion agree to a provision that says their solar option isn’t a tariff for 100% renewable energy, especially with the Direct Energy petition outstanding? I have an answer, but first a word of caution: you are now getting deep in the weeds. Carry tick repellant.

Recall that the fight over third party power-purchase agreements (PPAs) involves two provisions of the Virginia code, including § 56-577 (A) (5)—the one we’re talking about here. Companies that want to help customers install on-site solar facilities by using PPAs have argued that this section clearly permits customers to buy solar electricity from third party suppliers when their utility doesn’t offer a renewable energy tariff. No green tariff, no bar to a PPA.

But the utilities argue that this kind of electricity sale doesn’t meet the statutory requirement, because although a solar facility is 100% renewable, it does not serve 100% of the customer’s load. A strange reading, yes; and wrong, too, according to an SCC hearing examiner who looked at the question back when APCo put together its own renewable energy product. APCo decided to withdraw its product rather than risk the SCC confirming the hearing examiner’s reading. That action meant the utilities could keep their reading of the statute as a live threat against any company that wants to offer a PPA under terms that don’t meet the terms of the pilot program Dominion negotiated a few years ago.

Apparently, preserving that argument mattered more to Dominion than chasing off would-be competitors like Direct Energy. The gamble will have paid off if Direct Energy drops its Virginia effort in light of the SCC’s ruling last week.

 

Update, April 7. Ron Cerniglia, Director of Corporate & Regulatory Affairs for Direct Energy, provided the company’s view of the SCC’s ruling for us. His note reads:

In its ruling on Direct Energy’s Petition for Declaratory Judgment, the State Corporation Commission (SCC) agreed with Direct Energy on two of the three major points on which Direct Energy sought clarification.  The SCC did not agree that a retailer could continue to provide 100% renewable service to residential and small (<5 MW) individual customers, including new customers, after the utility (e.g., APCo or Virginia Electric and Power Company) receives approval of their own 100% renewable tariff.  However, residential customers and individualized non-residential customers who sign-up with a retailer do not immediately return to utility service when and if a utility receives approval of their 100% renewable tariff.  Instead, the customer remains with the retailer for the term of the customer agreement.  
The SCC agreed with Direct Energy that a retailer may continue to offer 100% renewable service to large customers (>5 MW) or to customers aggregating to >5 MW even if such sales are no longer permitted because the utility  is offering its own 100% renewable tariff.  The SCC also agreed with Direct Energy that if a retailer is providing 100% renewable service to a large customer that several  conditions and limitation  do not apply.  That includes the requirement of  that 5 year advance notice must be given before a retailer’s customer can return to the utility for service.  It is on this last point that Dominion has filed a Petition for Reconsideration.  This week, the SCC granted Dominion’s petition without ruling up or down on its substance. 
We do not believe that Dominion has raised any issue that the SCC has not already considered. We are very appreciative of the SSC’s actions to date and are hopeful that it will make short work of the petition, and quickly enter another Order denying Dominion the relief it is requesting.  Direct Energy is excited to open up the Virginia market to competition with a 100% renewable product. Once the uncertainty has been addressed, we believe that Virginians will have the choice to choose a renewable power supply solution.
Update May 12. On April 26, the SCC issued an Order on Reconsideration confirming its earlier ruling that the five year advance notice requirement did not apply to large customers (over 5 MW) who return to the utility following cancellation of a renewable energy supply contract with a competitive service provider.
On May 9, 2017 Dominion filed with the SCC its own plan for a renewable energy tariff for large users.  (PUR-2017-00060.) The filing notes that Dominion intends to follow this with a residential green tariff.

Potential 50,000 Rooftop Solar Jobs in Virginia, for Ten Years

By Will Driscoll

Virginia could produce 32 percent of its electricity from rooftop solar installations, according to a report from the National Renewable Energy Laboratory (NREL).  Yes, that’s a lot:

  • It’s 28,500 megawatts of solar capacity—almost double the 15,000 megawatts that Dominion Virginia Power found would save customers $1.5 billion, but said it wouldn’t know where to site the solar panels.
  • Installing that much rooftop solar in Virginia would yield about 50,000 jobs for ten years, based on the number of U.S. solar jobs in 2016 and the number of megawatts of solar installed.
 ind-8-convert-solar-va-beach
Al Chiriboga and Andrew Schultz of Convert Solar install a 10 kilowatt solar system on an office building in Virginia Beach.

The NREL analysis evaluated the potential for solar on buildings with at least one unshaded roof plane that is nearly flat, or faces east, southeast, south, southwest, or west.  If any such roof plane could accommodate at least 1.5 kilowatts of solar panels, NREL modeled solar on that roof plane.  Summing across all buildings in Virginia yielded a technical potential of 28,500 megawatts of rooftop solar.  NREL found that nationwide, 66 percent of large building rooftop area is suitable for solar, versus 49 percent for medium-size buildings and 26 percent for small buildings.

The technical potential is simply what the laws of physics allow, combined with common sense—i.e., no north-facing panels.  (NREL did count west-facing panels, which have value for meeting late afternoon electricity demand, and east-facing panels, which are equally productive.)  NREL assumed an average solar panel efficiency of 16 percent, and noted that if panels averaging 20 percent efficiency were used, the solar potential would be 25 percent greater (because 20 is that much greater than 16).  At least three firms make solar panels exceeding 20 percent efficiency.

The technical potential is just a theoretical maximum.  Yet the economic potential, or the sum of all money-saving rooftop solar investments, may not be far behind, especially over the next ten years, as solar costs keep falling due to technology improvements and economies of scale.  Each year more building owners realize they can save money with rooftop solar, including Virginia school systems.

 J Elkin Install Shockoe Solar 12.7 KW.jpg
Ryan Phaup and Andrew Harrison of Shockoe Solar install photovoltaic panels in Urbanna, VA.

The Solar Foundation counted 260,077 U.S. solar workers in 2016, and the Solar Energy Industries Association reported 2016 U.S. solar installations of 14,626 megawatts.  Dividing the two yields 18 workers per megawatt of solar installed.  Finally, spacing out the installation of NREL’s 28,500 megawatts of Virginia rooftop solar over ten years would mean 2,850 megawatts of rooftop solar installed per year, times 18 workers per megawatt, or 50,000 workers—for a ten-year period.

For rooftop installations, the jobs per megawatt would tend to exceed 18, since rooftop jobs are smaller and more labor-intensive than the 2016 U.S. mix of utility-scale solar (10,000 megawatts) and rooftop solar.  That is the experience of Edge Energy, whose co-owner Anthony Colella reports that installing one megawatt of solar per year requires a staff of 20—a roofing crew, an electrical crew, a project manager, a production manager, and sales and administrative support staff.  He sees a growing solar potential in Virginia, and says his firm plans to add 15-20 staff members this year and a similar number in 2018.

On the other hand, as the rooftop solar industry grows to meet the NREL potential, economies of scale should also come into play, enabling firms to sell and install more panels in less time.  So on balance, 18 jobs per megawatt, and 50,000 jobs over ten years, seems like a good ballpark estimate.

 20160708_174506-edge-energy
Henry Portillo (peak), Tulio Guzman and Carlos Cardona of Edge Energy celebrate an 8 kilowatt solar installation in Arlington, VA.

The NREL report noted that “In practice, the integration of a significant quantity of rooftop solar into the national portfolio of generation capacity would require a flexible grid, supporting infrastructure, and a suite of enabling technologies.”

Mr. Colella of Edge Energy said that “to reach for the big numbers,” Virginia needs to lift the size limits on residential and commercial systems; eliminate demand charges on larger systems; change the voluntary renewable portfolio standard into a requirement, with a closed Virginia market for solar renewable energy credits; and allow solar leases, solar power purchase agreements, and community solar.

In response to the NREL projection, a Dominion Virginia Power representative stated that the utility is installing solar toward a state goal of 500 megawatts of solar by 2020.  Appalachian Electric Power declined to comment.

Virginia currently has 238 megawatts of solar capacity, compared to North Carolina, which has 3,012 megawatts.

With Rooftop Solar Prices So Low, Virginia Schools Can’t Pass Up the Savings

By Will Driscoll

With today’s low solar prices, schools can save money by installing rooftop solar, and use the savings to improve education.  Schools in three Virginia communities are leading the way, achieving net energy savings after commissioning 1.7 megawatts of solar systems in 2016. Student leadership, power purchase agreements, and one outright purchase helped make it happen.

In Albemarle County, students helped drive a decision to install 1.1 megawatts of solar on six schools.  Back in 2014, Sutherland Middle School students gave pro-solar testimony in Richmond at a hearing on Dominion Virginia Power’s resource plans.  Meanwhile, students at Monticello High School wrote to the school board to make the case for solar.  The school division last year added rooftop solar to these schools and four others, by entering a power purchase agreement (PPA) with solar developer Secure Futures in Staunton.  The school division projects savings of at least $80,000 over the life of the 20-year PPA agreement, based on a projected annual increase of two percent in Dominion Virginia Power’s electricity rates.  (Photos below.)

Arlington’s new Discovery Elementary School is jam-packed with 497 kilowatts of solar panels.  That much solar was possible under Virginia’s net metering law because the school is heated using electric-powered geothermal heat pumps—so the school can net meter not only its air conditioning and lighting load but also its electric heating load.  The school district paid $1,369,500 for the solar system, funded through the same bond used to build the school.  The cost will be paid off in 14 years, assuming a two percent annual increase in energy costs, and the solar panels should produce free electricity for many years after that.  (That 14-year amortization is based on the bond’s interest rate of 2.63 percent and full-year 2016 energy cost avoidance of $101,000, increasing by two percent per year.)  The school is designed as a net-zero-energy building, and ran at net-zero in 2016. (Photo below.)

Lexington City Schools, which operates just three schools, added a 91.5 kW solar system to the Lylburn Downing Middle School. “No matter how big or how small a school division you are—and that translates into real life, no matter how big a corporation or how small—you can make an impact on the environment” explained School Principal Jason White in a video interview with Washington and Lee University’s Rockbridge Report.  Lexington School Superintendent Scott Jefferies added that the solar project “speaks beyond how much you can actually save financially—more so … that you’re actually trying to do something good for the environment.” Like Albemarle County, Lexington financed this solar system through a PPA with Secure Futures.

Looking Ahead:  To accelerate placement of cost-saving solar systems on schools—and to show our children that we care about their future—Virginia legislators could extend the right to enter into power purchase agreements (PPAs) beyond the current pilot program in the Dominion Virginia Power territory.  The legislature could also allow customers to net meter more solar-generated electricity than they consume, because we need all the solar we can get, and because Dominion claims it has difficulty siting solar generation.  And soon, legislators will need to increase the net metering limit, now fixed at one percent of total electricity consumption.

Virginia can produce 32 percent of its electricity from rooftop solar, according to a National Renewable Energy Laboratories report.  Virginia’s 2,093 public schools, with unshaded roofs ideal for low-cost commercial scale solar, represent a promising component of that potential.  Our progress in 2016 moved us eight schools closer to that target.

Albemarle County Schools–Photos 

image001

Staff of Mountain View Solar (in high-visibility clothing) and Secure Futures conduct commissioning tests for Albermarle High School’s solar installation. (Photo courtesy of Secure Futures LLC.)

image002

Sutherland Middle School’s 279 kW system. (Photo by Grant Gotlinger; courtesy of Secure Futures.)

image004

Baker-Butler Elementary School’s 224 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

image003

Brownsville Elementary School’s 130 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

Arlington’s Discovery Elementary School–Photo

image005

496 kW of solar panels on Arlington’s Discovery Elementary School, with a neighboring school shown at top left. (Photo courtesy of VMDO Architects and Digital Design & Imaging Service, Inc.)

 

 

While U.S. leaders were worrying about coal jobs, clean energy snatched the lead: even Virginia now has more people working in solar than coal.

 

va-electric-sector-jobs

Jobs in electric generation do not include fuel jobs, so for example, the coal jobs in the two charts have to be added together to get total employment. Wind and solar, of course, have no fuel costs. Charts come from DOE.

Jobs in electric generation do not include fuel jobs, so for example, the coal jobs in the two charts have to be added together to get total employment. Wind and solar, of course, don’t need employees to produce their “fuel.” Charts come from DOE.

A new report from the U.S. Department of Energy takes stock of energy employment in the U.S. and comes up with fresh evidence of the rapid transformation of our nation’s electricity supply: more people today work in the solar and wind industries than in natural gas extraction and coal mining.

According to the January 2017 U.S. Energy and Employment Report, 373,807 Americans now work in solar electric power generation, while 101,738 people work in wind. By comparison, a total of 362,118 people work in the natural gas sector, including both fuel supply and generating plants.

Total coal employment stands at 160,119. And while renewable power employment grew by double digits last year—25% for solar, 32% for wind—total job numbers actually declined across the fossil fuel sectors, where machines now do most of the work.

If generating electricity employs a lot of people, not generating it employs even more. The number of Americans working in energy efficiency rose to almost 2.2 million, an increase of 133,000 jobs over the year before.

Those are nationwide figures, but the report helpfully breaks down the numbers by state. For Virginia, 2016 was a watershed year. In spite of the fact that our solar industry is still in its infancy and we have no operating wind farms yet, more Virginians now work in renewable energy than in the state’s storied coal industry. A mere 2,647 Virginians continue to work in coal mining, compared to 4,338 in solar energy and 1,260 in wind.

Dwarfing all of these numbers is the statistic for employment in energy efficiency in Virginia: 75,552.