Shannon Erickson: Why SC legislature will fight for solar energy after crippling ruling | Opinion
Strong progress for clean energy was accomplished in South Carolina this year.
Advocates came together, overwhelmingly passing the Energy Freedom Act with the intent of growing solar in our state. The hope, as both sides of the aisle agreed, was that we’d helped to level the playing field for this burgeoning industry that’s brought thousands of jobs for our people and hundreds of millions of dollars of investment for our economy.
Two weeks ago, however, the S.C. Public Service Commission (PSC) showed disregard for that progress with a ruling that could shatter the work and intent of stakeholders working to give options to ratepayers.
Now, in addition to having the highest power bills in the country, South Carolina is poised to place the lowest value on solar energy of any other state in the country.
That’s right. After the S.C. General Assembly passed landmark legislation demonstrating our desire to expand the solar market, giving solar its shot as a legitimate, cost-competitive energy source, the PSC has made a decision that could force solar companies to pack up and leave South Carolina.
The hearing outcomes have been reported in several news outlets. You can watch the entire meeting here: https://www.scetv.org/live/public-service-commission. The debate between Commissioners over the issue is enlightening.
Bottom line, though, the numbers tell the story.
The rate the S.C. PSC approved pays $21.43 per megawatt hour for solar. In Georgia, North Carolina, and Virginia, they’re paying between $36 to $40 per megawatt hour. Those are much closer to a fair, equitable price that accounts for the true market value of solar.
Other states are also setting contract terms that are more equitable than the 10-year term the PSC set on Nov. 15. Our neighboring states are setting 20- and 30-year terms that are more in line with the licenses of traditional power plants.
A utility would never agree to incur the cost of building a power plant if the use of its output was only guaranteed for 10 years. The same is true with large-scale solar — longer terms should be prescribed, putting it on equal footing with other energy sources.
Also at risk could be increases to the more than 3,000 South Carolinians employed within the solar energy industry. If we don’t impede its growth with game-changers like this PSC ruling, the industry is projected to employ well over 10,000 South Carolinians within just a few more years.
The economic investment and tax payments for counties where large solar projects are sited is also projected to increase, and those communities need the kind of cash infusion the solar industry brings.
Our state literally cannot afford to watch the solar industry walk away.
Can solar survive the PSC’s latest ruling? Legislators are watching carefully as the implications of this decision unfold. We will work to ensure that the Energy Freedom Act is upheld and renewable energy opportunities in South Carolina are indeed expanded.
Shannon Erickson of Beaufort is a Republican representing District 124 in the South Carolina House of Representatives.