Michael Shank: Keeping renewable energy credits local

Michael Shank: Keeping renewable energy credits local

For businesses going green or wanting to go green, this makes a ton of sense. As GMP noted, this is the quickest way to be renewable while “avoiding construction costs, long-term power contracts, loans or complicated spreadsheets.”

This is great news, and it’s about time. More is needed, of course, as this initial pilot program is limited to 50 businesses and doesn’t include resident-to-resident trading opportunities, which is clearly the future (take note, Vermont Public Utility Commission).

From Brooklyn to Bangladesh, residences with rooftop solar are already doing this (the virtual trading platform is easy to implement, relying on blockchain technology).

Currently, in Vermont, and in many states, most solar power-producing residents are only able to donate extra net-metered credits to neighbors. A few solar-producing residents can participate in GMP’s new pilot above, and sell to those 50 businesses, but only if they installed their solar years ago, in the first phase of net-metering.

For the rest of us, there’s no way to sell the solar that we’re producing, and, in Vermont, net-metered credits expire annually if you don’t use them. Clearly that needs to change if we want to achieve energy independence and energy freedom and scale up solar power production in the state.

Why? Because it’s a much more attractive proposition to a potential solar power producer if, after purchasing and installing their own panels, they get to keep the credits indefinitely and trade them to any resident or business on a peer-to-peer marketplace platform. That’s what free trade looks like and that’s the future.

Since GMP wants to get to 100% carbon free energy by 2025 and 100% renewable by 2030, which is, laudably, what they’ve committed to, this is how to do it, by empowering renewable energy producers across the state.

This is a much more sustainable approach – i.e. scaling up locally-produced renewable energy – than importing people- and habitat-displacing hydropower from Canada, which is part of GMP’s current practice and future plans.

This is also how you address some of the local “not in my backyard” concerns with solar arrays in Vermont. One of the main drivers behind local resistance to solar arrays is the feeling that outsider companies – from New Jersey, for example (and this is a true story) – are coming in, taking the solar, and leaving without benefiting the local town. In contrast, solar projects that provide direct financial benefit to local communities, beyond the obvious tax revenue or project-related job creation, face far less resistance.

This is understandable. People want to see some kind of tangible, local return if they’re going to use local property for a solar array. And if peer-to-peer trading was rolled out across the state – including resident-to-resident, business-to-business, and resident-to-business trading – renewable energy projects could offer that financial return to local communities and local rooftops. If anyone can lead in this way, it’ll be Green Mountain Power.

To its credit, GMP is constantly rethinking what it means to be a utility. It’s partnership with Tesla, for example, was one-of-a-kind. It offered residents leasable Powerwall batteries for only $15 a month. The Powerwall pilot lets customers store power from their own solar or from the grid. (These batteries have been and continue to be an essential feature of my rural farm as power outages are frequent due to increasingly volatile and unpredictable weather patterns.)

GMP gets to use the batteries during peak load and residents get to use the batteries when the grid goes down. It’s a win-win. No other state utility has pioneered such a partnership and it serves as a model for utilities wanting to remain viable in a greener, cleaner power future.

Like many utilities across America, GMP is also smartly investing in, rebating, and promoting green products – from heat pumps and electric vehicles, to electric bikes and household e-control. They’re even bundling packages for solar, battery storage, and electric vehicles, and smartly messaging it as “energy independence” and “resilience” for your home, which of course it is.

GMP gets it. And they’re innovating all the time, which is great. Yet, if they, and the state’s public utility commission, are interested in further promoting energy independence, then more is needed. Vermont could lead the way nationally by offering all businesses, residences and whole neighborhoods the opportunity to be their own micro-grid, selling the renewable energy they produce, and keeping the credits indefinitely, if desired.

What a game-changer that would be. And that’s ultimately what energy freedom looks like. It’s time to innovate some more, Vermont. This is the future.

READ MORE...  Michigan AG focuses on clean energy, ratepayer support in shift for office
0
Like
Save