1/13/22

Ganje: three Republicans control the sun in South Dakota

Utilities are not your friends. 

In 2021 a study at Michigan Technological University revealed that far more work is needed to ensure the owners of self-generated electricity systems are not unjustly subsidizing electric utilities. 

Albuquerque enjoys an annual average of 310 days of sunshine while Rapid City in my home state of South Dakota gets about 230 days of sun. Public Service Company of New Mexico (PNM) pays .0025¢ (1/4 cent) per kilowatt hour for renewable energy certificates (RECs) generated by home photovoltaic or wind turbine systems. The net-metering rate is set by the Public Regulation Commission or PRC.

According to the Energy, Minerals and Natural Resources Department (EMNRD), the Solar Market Development Tax Credit provides a tax credit of 10% for small solar systems, including on-grid and off-grid PV systems and solar thermal systems. The tax credit runs through December 31, 2027. There is a cap of $8 million in tax credits to be issued every year on a first-come, first-served basis. A check on their dashboard shows a total credit amount approved so far in 2021 of $4,266,127. [Albuquerque Journal]

In South Dakota the three elected Republicans on the Public Utilities Commission (PUC) have taken a position opposed to net metering and the state's Koch-soaked legislature has considered but declined to pass legislation on the issue. No corporate taxes, a compliant regulator, a dearth of environmental protection and cheap labor make South Dakota the perfect dumping ground for earth killers like coal and eyesores like wind farms. But according to Republican Commissioner Chris Nelson the amount of wind power generation may have reached its plateau. In a 2019 interview with WNAX Radio Nelson said he believes there will be rapid development of solar power production facilities instead.

David Ganje is an attorney based in Rapid City where he practices environmental law.

South Dakota is one of two states which do not set utility rates using a general net metering protocol. Under the current system when a solar collection system is operated by a customer, the customer sells back excess generation to utility companies at a lower-than-market rate. Customers in the state pay approximately 10-13 cents per kilowatt hour and receive from an investor-owned utility approximately 1.5-2.5 cents per kilowatt hour for the unused excess of generated energy. [GANJE: Where the sun don’t shine]

Learn more from Michigan Tech.

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