Opinion: Solar power not to blame for Mainers’ rising electricity bills

Tuesday, January 28, 2025

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By Stanley Paige Zeigler, The Portland Press Herald

Maine families are understandably concerned about rising electric bills, but blaming solar power for these increases is both misleading and dangerous. The real culprits? The volatile cost of fossil fuels and the growing financial toll of climate-related damage.

It’s tempting for some elected officials to scapegoat clean energy. The facts tell a different story.

In 2023, solar energy programs made up less than 5% of the average residential electric bill, while natural gas accounted for a staggering 60%. This opposition is a continuation of what some call “new climate denial” — acknowledging climate change while opposing solutions like
solar power.

Research consistently shows that the volatility of natural gas prices is the main driver of higher electricity costs, especially in regions like New England that rely heavily on fossil fuels. Rising transmission and distribution expenses — amplified by utility business models that prioritize
capital expenditures — also play a significant role.

Meanwhile, states with high levels of wind and solar generation, such as Iowa and Oklahoma, have experienced lower rate increases compared to fossil-fuel-dependent regions. Clean energy is not the problem; it’s part of the solution. Solar and other renewables help insulate Maine from the rollercoaster of fossil fuel markets while delivering long-term savings.

In 2019, a bipartisan law jumpstarted Maine’s solar energy development after nearly a decade of inaction. The Net Energy Billing (NEB) program allows utilities to purchase excess power generated by solar customers and distribute it across the grid.

Initially, compensation for solar energy was tied to retail electric rates. However, when natural gas prices spiked during COVID and the Ukraine invasion, solar compensation rose too. Recognizing this issue, the Legislature reformed NEB in 2022 to reduce solar generator payments, demonstrating a willingness to adapt responsibly.

Despite these efforts, some legislators continue to target solar energy. In 2023, further reforms closed the more costly “tariff program” within NEB to most projects. Yet, the rhetoric persists, with some proposing retroactive policy changes that would dismantle contracts and investments already in place.

Retroactive policy would harm more than 80,000 program participants including Maine municipalities, school districts, hospitals, small businesses and residents across the state that have embraced solar to lower and stabilize energy costs. These entities would bear the brunt of
retroactive changes, in many cases leaving taxpayers to pick up the tab.

Retroactive cuts would also jeopardize work being ably performed by electricians, general contractors, technicians, environmental engineers and thousands of other Maine workers, lead to expensive lawsuits and stall clean energy progress — all while doing nothing to address the root causes of rising electric bills.

Cuts also send a chilling message to investors and businesses considering Maine as a partner in the clean energy transition, who may view our state as far too risky a regulatory environment, thereby threatening Maine’s broader climate and clean energy goals.

What can Maine do to address rising electric bills? For starters, we can double down on clean energy. Solar and wind provide stable, predictable energy costs. Maine’s NEB program delivered $160 million in benefits in 2023, far exceeding its $130 million cost — a $1.23 return on every dollar invested.

Second, we can reduce costs. Work is already underway at the Public Utilities Commission, exploring ways to reduce program expenses and better monetize benefits.

Third, we should scrutinize utility costs. As storm recovery costs and transmission expenses rise, we must ensure utilities are not overburdening ratepayers.

Fourth, it’s important that we support vulnerable populations by developing stronger programs to help low-income households afford electricity.

And, last but not least, we should implement Solar for All. Maine’s $62 million in federal funding for Solar for All can ensure equitable access to clean energy for low-income residents.

Clean energy is not just an environmental imperative, it’s an economic necessity. By reducing our dependence on volatile fossil fuels, we can protect Maine families from price spikes and support a resilient energy future.

I urge my colleagues to reject harmful retroactive proposals and focus on meaningful solutions that address the true drivers of rising electricity costs. Let’s invest in Maine’s clean energy future, not dismantle it.

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