Feds See Solar Investment Go To Waste As Utility Stalls
Monday, January 16th 2012 1:58 PM
By GetSolar Staff.
While solar installations in the U.S. have been skyrocketing over the past few years, some federal agencies have encountered problems beyond just finding a solar installer and paying for the system. The Los Angeles Times reports that several of these organizations have endured difficulties getting utility company Southern California Edison to connect their solar systems to the grid, preventing them from turning on their systems.
California has seen a massive rise in interest in solar power in recent years, seeing more than 1 gigawatt of added solar capacity for the first time in 2011. The combination of high electricity prices, ideal weather and substantial solar incentives have made the industry extremely competitive with traditional sources of energy.
Unsurprisingly, large energy consumers like the federal government have become interested in the potential savings of these projects. The Nation Park Service, in particular, has seen potential in adding rooftop solar installations to their customer centers and other facilities. One such installation at Death Valley National Park cost $800,000 all told, but was expected to reduce electricity bills around 70 percent. However, other agencies like the Veterans Administration and the Department of the Navy have also invested in renewable energy in the state.
Part of this stems from requirements that federal agencies use certain levels of renewable energy, according to the Department of Energy. Currently the government must use at least 5 percent renewable energy. Federal agencies also face carbon-footprint-reduction requirements, which can similarly be met by moving to renewable energy.
But many of these projects in California, including the massive installation at Death Valley, have yet to begin actually generating electricity, some of them years after completion.
"We are purchasing electricity from SCE, whereas we could be using renewable energy from the sun and returning power to the grid," park superintendent Woody Smeck explained to the Times. "Until we can get the interconnection agreement approved, the switch is off and we can't benefit."
SCE has refused to connect many of these projects to the grid because it will not accept a contract including the federal tort process. Federal agencies cannot sign contracts that open it to unspecified liabilities because of the nature of their year-to-year budgets, leading to the creation of the separate tort process for these agencies.
Other utilities have already proven willing to accept these kinds of liability limitations, with Pacific Gas & Electric agreeing to connect a 2,800-panel solar installation at Yosemite National Park, but the projects in SCE's service area continue to sit unused, wasting millions in investment from the federal government.
Meanwhile, the U.S. Energy Information Administration reports that as of September last year California had seen a more than 6 percent rise in its electricity rates from the year before, making the costs paid to SCE all the higher.
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While solar installations in the U.S. have been skyrocketing over the past few years, some federal agencies have encountered problems beyond just finding a solar installer and paying for the system. 
