News & Press

Solar rebate legislation could have a chance in the Legislature

Austin American-Statesman

April 21, 2011

Gov. Rick Perry is casting a large shadow over the direction of the solar industry in Texas.

Perry has nixed one approach for providing solar industry incentives with a veto threat, but he has given hope to legislation that would use voluntary fees on electric meters to fund a solar rebate program.

Meanwhile, Pflugerville city officials are supporting a bill to create a renewable energy investment zone to encourage solar companies to relocate to the city to be near RRE Austin Solar, a solar farm that broke ground near Coupland in December.

Solar incentive measures failed in the final days of the 2009 legislative session. Industry officials say Texas gave other states a head start in attracting solar investments and that a rebate program is necessary to compete.

"There is a need to kick-start investment in Texas," said Carrie Hitt, president of The Solar Alliance, a national industry group. She said at least 10 states, including California, Arizona, Colorado and New Jersey, are ahead of Texas in solar investment.

State Rep. Drew Darby, R-San Angelo, said Thursday that he has been negotiating with Perry's office about House Bill 2961. The legislation would allow monthly fees to be levied on electric meters: 25 cents for residents, $5 for commercial customers and $50 for industrial users, up to five meters per industrial customer.

The fees would pay for rebates to offset the cost of installing solar equipment. Customers, however, could opt out of the fee program, and low-income customers would be exempt.

Darby said he's optimistic about his talks with Perry.

"We're still talking," Darby said. "I think the governor is considering the economic impact this industry can bring to Texas."

That was the message that a group of chief executives brought to the Capitol last week, including in a meeting with Perry.

"These were big companies talking about bringing big money to Texas," said state Rep. Mark Strama, D-Austin, one of the bill's authors along with Darby .

Meeting with the governor and legislators were the CEOs of Applied Materials, Borrego Solar Systems, SolarCity, SPG Solar and Suntech. The companies are a mix of solar manufacturers and installers.

No one can estimate how much money a voluntary program might raise, but the goal is to raise enough to provide rebates for 1,000 megawatts of solar generation — enough to power more than 200,000 households — during the five-year program.

Perry's press secretary, Katherine Cesinger, quoted the governor as saying, "We must continue to diversity our energy portfolio, and we are also committed to make sure electricity rates remain affordable in Texas."

Perry has signaled that he would veto an approach that would have encouraged electric utilities to include nonwind, renewable energy in their mix of generation sources.

State Rep. Rafael Anchia, D-Dallas, said his legislation, House Bill 774, will die in committee. Utilities and manufacturers opposed the bill, saying it would raise rates.

Rep. Jim Keffer, chairman of the Energy Resources committee, said Perry's opposition makes a committee vote unnecessary.

"I'm not going to have my members vote on anything that will be vetoed," the Eastland Republican said.

The City of Pflugerville is pursuing a different tack.

In December, RRE Solar Austin broke ground on a solar farm that city officials hope will be a magnet for other solar energy companies.

House Bill 3254, by Strama, would allow the city to cut property taxes by 50 percent for 15 years for qualified companies located on a 160-acre tract of land near the intersection of FM 1825 and Texas 130.

Travis County and the Pflugerville school district have the option of giving tax breaks as well, but the state is not required to cover the school district's revenue losses. The bill is targeted for Pflugerville only.

Strama said RRE Austin Solar expects to invest up to $250 million and hopes

to attract a lot of outside investment.

"It's as real as anything I've come across," Strama said.

Floyd Akers, the city's lawyer, said Pflugerville is planning a solar industry incubator that would allow companies to test new solar products on the solar farm's electric grid.

"We hope to keep them here to manufacture their products," Akers said of the companies.

Pflugerville officials testified late Wednesday for the bill in the committee, where it was left pending.

On Thursday , Strama was trying to round up support among lawmakers for what he hopes will be a committee vote next week.

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