Washington State Solar Legislation HB 2346 – UPDATE
Production Incentives, Industry Future at Risk
UW Students Meeting Governor Inslee During Solar Celebration
The fate of the solar industry in Washington State rests on a bill currently moving through the House of Representatives in Olympia. The bill is HB 2346, which you can follow here.
HB 2346 is a great piece of legislation. Here is what it does for you:
Existing Solar Customers:
- HB 2346 quadruples the utility incentive cap from .5% to 2%, and guarantees your existing incentive rate until the end of the program in 2020—even if your utility hits a 2% cap before then.
- So if this passes, it’s business as usual for you—your current incentive rate ($.15 – $.54/kWh) doesn’t change.
New Solar Customers (systems installed after July 1, 2016):
- New solar customers will pay sales tax for their systems, helping pay for the program.
- The incentive rate structure is redesigned to give customers in the new program around a 10-year ROI.
- While customers get less incentive money, their incentive rate is fixed for 10 years.
- First-comers get the highest incentive rates, with incentives dropping each year for future customers.
- Larger commercial systems and community solar systems are encouraged.
- Long-term renters and leaseholders can get the incentive; it’s not limited to home and building owners.
The goal of HB 2346 is increase the amount of solar installed in Washington state from its current 60MW to 200MW by 2020. In other words, it more than triples the amount of solar in the state in four years.
Much of this growth will come from Made-in-Washington panels and inverters, and almost all of the systems will be installed by companies from Washington State.
HB 2346 is not only good for the environment—it pumps a LOT of money into the Washington State economy. Last week, Western Washington University published a study showing that every $1 spent by the State of Washington under HB 2346 leads to $7 in payroll and $16 in economic activity for the state.
Solar Installers of Washington had a Lobby Day in Olympia on January 28th, which was a success by all accounts. About 100 of us met legislators from both sides of the aisle and geographic region, all of whom were receptive and mostly encouraging of the bill.
Unfortunately, there’s a twist to the story. A substitute bill (H-3937.2) was introduced on Friday, January 29th, which guts HB 2346 incentive rates for new solar customers. Here is a breakdown of the changes in the incentive structure:
|
Fiscal Year System Certification
|
Base Rate: residential
|
Base Rate: Commercial
|
Base Rate: Community Solar
|
Made-In Washington Bonus
|
|
2017
|
$.22
|
$.18
|
$.32
|
$.10
|
|
2018
|
$.20
|
$.16
|
$.30
|
$.08
|
|
2019
|
$.18
|
$.14
|
$.28
|
$.06
|
|
2020
|
$.16
|
$.12
|
$.26
|
$.04
|
|
Fiscal Year System Certification
|
Base Rate: residential
|
Base Rate: Commercial
|
Base Rate: Community Solar
|
Made-In Washington Bonus
|
|
2017
|
$.12
|
$.07
|
$.11
|
$.05
|
|
2018
|
$.10
|
$.05
|
$.08
|
$.05
|
|
2019
|
$.08
|
$.03
|
$.06
|
$.04
|
|
2020
|
$.06
|
$.01
|
$.04
|
$.04
|
Here’s why we need the original rate structure from HB 2346 restored:
- The new rate structure from the substitute bill (H-3937.2) would mean customers will no longer have an economic incentive to buy Made-in-Washington or Made-in-USA modules.
- The industry will go into survival mode and rapidly shrink. We won’t be able to pay a highly-trained workforce, much less give them benefits, and we won’t have as much money to continue investing in our companies.
The rate structure of HB 2346 as originally submitted would continue the rapid growth of solar in Washington, adding to the thousands of jobs in our industry. The substitute bill would mean the death of Itek in Bellingham, and a slow death of the Washington State solar industry.
To keep growing as an industry, keep installing Made-in-Washington and Made-in-USA solar panels, and keep investing in our skilled solar workforce, the original rate structure of HB 2346 needs to be restored.
The legislature’s goal of going from 60MW of currently installed solar to 200MW installed by 2020 is wildly unrealistic if substitute HB 2346’s rate structure wins.
WHAT’S NEXT?
Substitute HB 2346 will get a hearing in the House Finance Committee on 2/5 at 10 a.m.
House Finance Committee Members are:
Lytton, Kristine (D)
Robinson, June (D)
Nealey, Terry (R) – Ranking Member
Orcutt, Ed (R)
Condotta, Cary (R)
Frame, Noel (D)
Manweller, Matt (R)
Pollet, Gerry (D)
Reykdal, Chris (D)
Ryu, Cindy (D)
Springer, Larry (D)
Stokesbary, Drew (R)
Vick, Brandon (R)
Wilcox, J.T. (R)
Wylie, Sharon (D)
Please reach out to these representatives and ask them to support the HB 2346 and its original rate structure!
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