Backers say solar power bill could result in electricity equivalent to a reactor

Apr 6 - Jack Z. Smith Fort Worth Star-Telegram, Texas

Proposed state legislation would provide a huge jump-start for development of solar power in Texas by providing rebates for projects ranging from home rooftop panels to commercial installations, backers say.

The result could be that "solar panels go up on 50,000 homes, 1,000 businesses and in large solar farms," said Luke Metzger, director of Environment Texas.

Such projects could produce 1,000 megawatts of new sun-powered electric generation capacity in Texas over five years, Metzger said. The state now has an estimated 15 to 30 megawatts of solar capacity.

The House State Affairs Committee will hear comments today on the proposal, House Bill 2961, written by state Rep. Drew Darby, R-San Angelo.

Under the bill, a charge would be added to monthly electric bills to provide an estimated $1.2 billion over five years for solar rebates for residential, commercial and utility-scale projects. The charge would be $1 per residential meter, $5 per commercial meter and $50 per industrial meter.

Residential and small commercial customers could have the extra charge waived but would be ineligible for rebates.

Rebates could go to electric customers, qualified solar installers, home builders, remodelers or third-party owners of installed solar generation. Initial rebate amounts would be $2 per watt for "distributed" solar generation with a capacity of 10 kilowatts or less installed at a home or business; $1.40 per watt for installed solar generation with a capacity of 10 to 2,000 kilowatts; and $1 per watt for installed wholesale solar generation.

The federal government offers tax credit for 30 percent of the cost of a solar installation, but the state has provided limited solar incentives.

It is uncertain precisely when the bill will be discussed, because it is one of many on the committee agenda and the meeting's start time depends on when the full House adjourns or recesses.

If Darby's bill passes, "I think the impact will be huge," said Steve Wiese, president of the Texas Renewable Energy Industries Association and owner of Clean Energy Associates, an Austin consulting firm.

"The race among states to do well in solar is populated by about a dozen states that are doing something," Wiese said. "Texas certainly hasn't been in that dozen. This could bring us into that dozen.

"If we can develop solar energy in this state, we potentially can develop a manufacturing base that can employ people producing these [solar] products for out-of-state as well as in-state," Wiese said.

Solar power at 1,000 megawatts is roughly equivalent to the generating capacity of a nuclear reactor, Wiese said. The Comanche Peak nuclear plant southwest of Fort Worth, for example, has two reactors rated at 1,200 and 1,150 megawatts.

Darby said in a statement: "The solar industry is exploding in states all around us, but without supportive policy to jump-start the industry in Texas, we are missing out on thousands of jobs and billions of dollars in private investment. By acting now, Texas can be a leader in the solar industry from manufacturing to installation, rather than simply a consumer of solar products."

Wiese said solar power is becoming more attractive because costs are steadily falling.

The cost of generating electricity from the sun will rival the price of building coal plants in the next decade and may already be competitive now, executives and analysts said Tuesday at the annual New York conference of Bloomberg New Energy Finance, Bloomberg News reported.

Large solar photovoltaic projects will cost $1.45 a watt to build by 2020, half the current price, estimated New Energy Finance, a London research firm. Chinese companies are making solar panels cheaper as a result of better cell technology and streamlined manufacturing, Bloomberg reported.

"The most powerful driver in our industry is the relentless reduction of cost," said Michael Liebreich, CEO of New Energy Finance.

Jack Z. Smith, 817-390-7724