Texas Senate Saves Solar Bill

AUSTIN – In a late night session, last night the Texas Senate approved a major solar bill for the second time, resuscitating a measure that appeared to have died in the House the previous day. The bill, which creates a half-billion dollar fund to help Texans install solar panels on their rooftops, is expected to help create thousands of jobs and position Texas as a major leader in the solar industry.  

“To paraphrase the old song, the sun last night was big and bright, deep in the heart of Texas,” said Luke Metzger, Director of Environment Texas. “HB 1243 will help kick start a solar revolution in Texas, creating thousands of good jobs and protecting our environment.”  

In April, the Texas Senate approved SB 545 by Sen. Troy Fraser (R – Horseshoe Bay), which would provide $100 million a year in funding to pay for up to one-third the cost of installation of solar technologies. Combined with federal tax credits of 30%, the bill would put solar within reach for thousands of Texas families and could lead to the installation of up to 1000 megawatts of solar within ten years. Texas currently has less than 10 megawatts of solar capacity. Due to prolonged debate in the House over the controversial ‘voter id’ bill, SB 545 was not heard in time to meet a Tuesday deadline, creating a serious setback for the bill. However, Sen. Fraser was able to amend the bill to another related measure, HB 1243 by Rep. Pete Gallego (D – Alpine), which sets minimum standards for utilities to compensate consumers for surplus electricity generated by solar. In an amusing twist, faced with their own midnight deadline, the Senate unplugged their clock at 11:58, allowing debate on bills to continue for another two hours.  

“At the 12 1/2th hour, Senator Fraser and Lucio took a Texas two-step last night by marrying the bill guaranteeing fair market value for surplus electricity from solar panels (HB 1243 by Gallego) with the bill that creates a statewide solar incentive program for residents, small businesses and schools,” said Cyrus Reed, conservation director of the Lone Star Chapter of the Sierra Club. “The new, improved HB 1243 should spur development of the solar industry in Texas, save consumers money while generating pollution-free electricity and create new green jobs.” 

As amended, HB 1243 also:

• Requires homebuilders to offer solar as a standard option in developments with 50 homes or more. Installing solar during construction reduces the upfront costs;
• Prohibits homeowners associations from blocking solar;
• Creates a loan program for solar on schools;
• Allows up to 70% of the funds to be used for utility-scale solar projects;
• Allows the Public Utilities Commission to extend the program for an additional five years and another $500 million if they determine that a “substantial amount of manufacturing of solar generation products located in Texas after the initial five-year program”;
• Requires electric coops to allow consumers to interconnect solar to the grid;
• Clarifies that consumers will not have to register as a utility and that third party ownership of solar is allowed;
• For the next two years, requires retail electric providers to pay at least five cents per kilowatt hour for surplus solar and four cents for other renewable technologies and directs the PUC to determine a fair market price that will become a new “floor” following the two years; and
• Creates a “Made in Texas” program to certify and encourage Texans to buy locally manufactured solar panels and other energy products.

“Last night Texas threw its big hat into the solar ring with HB 1243, which will bring green jobs and cleaner air,” said Colin Meehan, Renewable Energy Specialist for Environmental Defense Fund.  “This could be the start of a beautiful friendship between Texas and solar power.” 

“The Texas solar industry is about to get hot,” said Tom “Smitty” Smith, Director of Public Citizen’s Texas office. “The proposal that passed last night solves two parts of the puzzle.  The bill will put panels on rooftops and payback panel purchasers for power produced beyond what is used each month.”    

The latest version of HB 1243, which the House will still need to concur on or call a conference committee to hash out the differences, includes policies initiated by a number of legislators including Senators Fraser, Watson, Shapleigh and Van de Putte and Representatives Gallego and Strama. The groups applauded those legislators for their leadership.

On Tuesday, the Senate approved HB 1937 by Rep. Mike Villareal (D-San Antonio). The bill allows local governments to finance solar projects for homeowners and then get reimbursed via property taxes over the course of 20 years, an innovative solar financing model that can help eliminate the barrier that the high upfront cost of solar causes for many Texans. Sen. Kel Seliger (R-Amarillo) carried the bill over in the Senate.

“Perhaps the single greatest impediment to widespread solar adoption is the high upfront cost,” said Annie Carmichael, Federal Policy Director of Vote Solar. She continued “Coupled with the new solar rebates, this elegant financing option will remove that barrier making solar accessible to more Texans. We thank Representatives Villarreal, Strama and Farias for being champions of this financial mechanism throughout the session.”