A controversial bill in Maine is receiving backlash from solar developers who say the legislation would make operating in the Pine Tree State untenable. 

What’s happening?

As Canary Media detailed, the bipartisan bill would reform Maine’s net energy billing program (known as “net metering” in other states), which pays owners of solar panels for sharing their excess energy with the grid. It would also add new fees to community solar projects, which began to grow in earnest after a previous net energy billing reform in 2019.

Developers and renewable energy advocates agree that the state’s net energy billing program could improve, according to the report. However, they argue that the bill — introduced in April — would cause financial harm to the solar industry.

For one, it would alter the compensation rate for solar providers. Instead of receiving the standard utility electricity rates, which infuse them with more revenue when power prices rise, providers would get gradual yearly increases, limiting their profitability.

The community solar amendments are especially troublesome because customers would end up paying a monthly fee for “distribution costs” to deliver the solar power, threatening the demand for existing projects and ultimately making the industry more risky for investors. 

Why is this important?

Community programs have made solar energy more accessible to Americans, many of whom can’t install their own panels as renters or afford the upfront cost. This has led to wider community benefits, including job growth, healthier air quality, and reduced or stabilized utility bills. 

As of June 17, the proposed legislation still hadn’t reached the House floor. Yet the language in the bill — some of which was added in committee without a public hearing — is already having a “chilling effect” on solar development, according to Canary Media. 

“The problem is that they’re looking to change the rules of the market after the fact,” said Brendan Bell, COO of Aligned Climate Capital, which operates multiple solar projects in Maine. “We’ve already stopped investing in Maine because of this. Simply the risk of this happening has made us stop.”

Cliff Chapman, CEO of Syncarpha Capital, an investment firm with eight community solar projects, added: “What we don’t do in America is change rules retroactively and blow up existing investment. Being a state that does something like this has huge implications — they’re making themselves a pariah for investors.”

What’s being done about this?

While concerns remain about the bill, things aren’t set in stone. 

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Maine Public Advocate Heather Sanborn, who supports the legislation, told Canary Media that the bill has its upsides, referring to it as a “responsible and balanced solution.”

First, it would introduce protections requiring operators to issue refunds to customers with more solar credits than they use. It would also encourage households with solar energy to install battery storage systems, which can help keep the lights on during grid outages. 

Residents who want to make their voices heard on the matter can contact their representatives.

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