Changes by Dominion Energy Reshape Solar Benefits
Dominion Energy has gained a lot of attention with regards to rate hikes applied to home utility accounts combined with solar power systems. The cost to a customer with a solar panel system is expected to increase by $428 annually. It will be spread out for a monthly bill increase of about $36. The issue has been under quite a bit of review and discussion, repeatedly being heard by the S.C. Public Service Commission.
In 2014, solar generation was capped at 2 percent of the peak capacity statewide. Due to the popularity of solar, that limit was about to be reached in 2019, so a compromise was reached. The cap was removed by a law change, but a deadline was also established for all stakeholders to figure out the balance between new solar competition and existing utility market territories. That became the catalyst for the fee changes proposed in 2021.
Technically, 11,000 Dominion accounts today use solar energy creation. That figure is less than 2 percent of the total 750,000 accounts in South Carolina for the company. Like in many other states, these people are able to generate electricity, reducing their power bill as well as creating excess to sell back to their state’s grid. That sell-back aspect will continue for the next few years. However, the proposed solar choice metering tariff is proposed to add a new fee to a user’s account, paid monthly, that would likely reduce the total savings from the sell-back feature. However, the fee can also help reduce the utility bills for other non-solar users on the Dominion grid.
One key benefit of the proposal is that it pushes down the cost of energy creation for everyone. That supports the ongoing diversification of energy production, moving the state away from monopoly control. And with the rate of solar generation increasing nearly 50 percent within a decade — and expected to double again five years after that – the same diversification will grow exponentially.
Consumers would not be restricted by the fees in terms of being able to choose which solar vendor to work with. They would still have the same freedom as they do now to choose equipment, layout, performance, and personal home installation. The difference would be the addition of the fees to spread the benefit of solar to the totality of Dominion accounts versus just a small percentage.
As a result, consumers still have the advantage of being able to start or continue solar system installations. While the sell-back component may be reduced by the new fees, the overall impact of cost reduction remains and is significant for any customers switching over from the traditional power grid. Call or email us at Carolina Energy Conservation to find out more or to obtain a no-obligation home-energy quote.
