{"id":12271,"date":"2016-02-11T12:03:32","date_gmt":"2016-02-11T18:03:32","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=12271"},"modified":"2017-02-07T13:02:32","modified_gmt":"2017-02-07T19:02:32","slug":"good-policy-gone-bad-how-nevada-killed-jobs-and-clean-energy-competition","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2016\/02\/11\/good-policy-gone-bad-how-nevada-killed-jobs-and-clean-energy-competition\/","title":{"rendered":"Good Policy Gone Bad: How Nevada Killed Jobs and Clean Energy Competition"},"content":{"rendered":"

\"Road_Closed_sign_along_Nevada_State_Route_317_south_of_Caliente,_Nevada\"If you want a good example how bad government can kill good jobs and clean energy innovation, take a look at what\u2019s happening in Nevada, where a decision by Governor Brian Sandoval\u2019s appointees, pushed by NV Energy Inc., essentially killed the thriving local solar energy industry.<\/p>\n

In December 2015, Gov. Sandoval\u2019s Public Utilities Commission (PUCN) approved<\/a> a new net metering rule for people with rooftop solar systems that significantly increases<\/em> monthly fees they pay their utility and significantly decreases<\/em> the value of unused energy they sell back to the grid. Under the new rule, rooftop solar owners do not receive payments for the benefits they provide the electric grid and it will simply take too long to recoup a solar investment so that, for most, solar will no longer be a smart financial move. Solar companies are already running<\/a> for the border.<\/p>\n

And if killing jobs wasn\u2019t enough, PUCN\u2019s new rule is retroactive, essentially pulling the economic rug out from under the 17,000 Nevadans who have already invested in solar systems based on existing rules. In some cases, people who have invested tens of thousands of dollars are immediately underwater; it may take them decades to see a financial return on their investment. That is, unless Nevada decides to grandfather<\/a> all existing solar customers for 20 years (a vote by the PUCN is scheduled for tomorrow).<\/p>\n

So, who will benefit from the new rule? Legacy electric utilities, which for more than 100 years have built<\/a> their profit models on selling as much energy as possible. In Nevada, the resident legacy utility is NV Energy Inc., which continues to be the largest private utility in the state. Owned by a subsidiary of Warren Buffet\u2019s Berkshire Hathaway, NV Energy sells<\/a> electricity to 1.3 million people across the state at the highest rates<\/a> in the Mountain region. NV Energy was a loud critic of the former net metering policy and a supporter<\/a> of the decision to cut support for solar power.<\/p>\n

Despite the flowery commitment to renewable energy NV Energy lists on its website<\/a>, the company\u2019s generation fleet is overwhelmingly fossil-fueled. Of the 6,400 megawatts of generation it lists online, the company\u2019s website shows that 99 percent comes from natural gas or coal plants. Its renewable energy sources are a mathematical asterisk.<\/p>\n

Solar energy, meanwhile, is booming across the country, partly due to net metering policies the Nevada rule reversed. There\u2019s more than 22,000 megawatts<\/a> of installed solar in the U.S., and more than 20,000 additional megawatts are expected to be installed in the next two years. The cost of installing solar has dropped 73 percent since 2006<\/a>, customer demand is still high, and solar companies are adding workers nearly 12 times faster than the overall economy. In the last six years, the U.S. solar job market has grown 123 percent<\/a>.<\/p>\n

[Tweet “Good Policy Gone Bad: How Nevada Killed Jobs and Clean Energy Competition”]<\/p>\n

Solar demand has been so strong in Nevada that SolarCity, one of the largest solar companies in the world, announced<\/a> in 2013 it would make Las Vegas a regional corporate hub. And the state\u2019s solar potential has barely been tapped \u2013 a U.S. Department of Interior study estimated<\/a> that there is more than 6,500 megawatts of solar potential in Southern Nevada alone. For reference, that\u2019s as much electricity as all of NV Energy\u2019s company-owned generation combined<\/a>. Solar is so hot in Nevada that the iconic \u201cWelcome to Las Vegas\u201d sign is now powered<\/a> by the sun.<\/p>\n

The PUCN\u2019s rule killed that momentum and potential in favor of a private monopoly with a 100-year old business model. While one advocacy group called Nevadans for Affordable, Clean Energy Choices filed<\/a> a proposed constitutional amendment last week to break up NV Energy\u2019s monopoly in the state, it seems the damage has already been done. SolarCity has already eliminated<\/a> 550 Nevada jobs and won\u2019t sell any more systems in Nevada. Sunrun<\/a> and Vivent<\/a> are also pulling out of the state. Local contractors and installers will feel the pinch, too, as potential customers simply won\u2019t be able to make the math work.<\/p>\n

A recent analysis found<\/a> that Nevada ranks first in the country for solar jobs per capita. Now these jobs are at risk \u2013 and could move to other states, where elected officials, regulators, and business owners are more interested in building a new economy than protecting an outdated one.<\/p>\n

Nevada\u2019s rule is a poignant example of what is happening across the country. The solar boom is making utility monopolies face some difficult questions: How do utilities compete with new technology when all they know how to do is sell more energy and increase rates? How do they incorporate new energy sources, like solar, that they don\u2019t sell? How can utilities recoup the billions of dollars some of them<\/a> unwisely spent on outdated coal plants?<\/p>\n

These are hard questions. Yet they\u2019re inevitable for any business. Technology does not stand still. Some utilities<\/a> are getting creative by experimenting with new business models that treat energy as a service, not a commodity, so they can thrive without punishing solar customers.<\/p>\n

But in markets across the country, many utilities are using their political clout to protect their economic power and fight the future. Nevada is simply the latest and most egregious example. With one rule, Gov. Sandoval\u2019s political appointees have killed NV Energy\u2019s competition \u2013 customers and citizens be damned. As SolarCity CEO Lyndon Rive said<\/a>, \u201cThis is not how government is supposed to work.\u201d<\/p>\n

Photo source: Wikimedia<\/a>\/Famartin<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

If you want a good example how bad government can kill good jobs and clean energy innovation, take a look at what\u2019s happening in Nevada, where a decision by Governor Brian Sandoval\u2019s appointees, pushed by NV Energy Inc., essentially killed the thriving local solar energy industry. In December 2015, Gov. Sandoval\u2019s Public Utilities Commission (PUCN) …<\/p>\n","protected":false},"author":42,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4127,307,203,27600],"tags":[],"coauthors":[],"class_list":["post-12271","post","type-post","status-publish","format-standard","hentry","category-dynamic-pricing","category-jobs","category-solar-energy","category-utilities"],"acf":[],"yoast_head":"\nGood Policy Gone Bad: How Nevada Killed Jobs and Clean Energy Competition - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/02\/11\/good-policy-gone-bad-how-nevada-killed-jobs-and-clean-energy-competition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Good Policy Gone Bad: How Nevada Killed Jobs and Clean Energy Competition - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"If you want a good example how bad government can kill good jobs and clean energy innovation, take a look at what\u2019s happening in Nevada, where a decision by Governor Brian Sandoval\u2019s appointees, pushed by NV Energy Inc., essentially killed the thriving local solar energy industry. 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