David Michael Miller
Despite some initial concerns, Wisconsin’s Public Service Commission on Friday morning approved plans for a community solar project by Madison Gas and Electric in Middleton, the first in Dane County.
The PSC is requiring MGE to sign up 250 subscribers to the project by Oct. 31.
Community solar allows customers to source solar energy from centralized solar panel arrays instead of having to install panels on their homes. More than half of homes are unfit for solar panels, either because the roof is shaded or not properly oriented, and community solar allows for much larger arrays.
Customers who choose to participate in community solar arrangements typically pay an initial subscription fee, which can be a few thousand dollars depending on the investment size, to fund construction. Each month, the project’s energy output is measured, and customers receive reductions on their bills based on the amount of energy generated from their shares of the array. It usually takes more than 10 years for monthly discounts to cover the initial investment. But for many, it’s an easy way to support clean energy.
MGE’s project is slightly different: Instead of selling shares of the array, MGE would own it and sell customers shares of the array’s output. Under this arrangement, smaller investments would be possible, and upfront costs would be significantly lower, around $380 for an average household subscription of 2 kilowatts.
The arrays will be installed at Middleton’s Municipal Operations Center and provide 500 kilowatts of power to up to 250 homes currently served by MGE. Participants would pay a level rate of $0.12 per kilowatt-hour for energy produced from the panels; the default rate is around $0.095 per kilowatt-hour. However, the solar rate would be locked in for 25 years.
MGE’s original proposal excluded current solar energy users from being eligible. The PSC questioned this in their initial response, and MGE agreed to open the program to all customers.
At Friday’s meeting, commission member Mike Huebsch voiced concern that opening the project to all subscribers might make it harder to gauge how much interest exists outside of current solar energy users. While he approved the proposal, he suggested that MGE consider accepting only customers not currently using solar energy until 60 days before the deadline. Current solar energy users could sign up at that point if spots remain. This condition was included in the PSC’s approval.
The onus is now on MGE to find subscribers. “This is why we do pilots. It will be interesting to see what the level of participation is,” Commission member Ellen Nowak said at the meeting. “That’s why it’s good to start small and cautious.”
