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Nehemias Velez: Shared solar puts power back in the hands of the people

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Photo: © Romolo Tavani/stock.adobe.com

Democrats and Republicans agree: the cost of living is too high. One important way Gov.-elect Abigail Spanberger can lower utility bills while bringing more energy online is to implement her platform’s proposal to expand Virginians’ access to shared solar.

As the executive director of the Staunton Redevelopment & Housing Authority, I oversee 150 multi-family units housing around 340 residents. Many residents are elderly, on fixed incomes, or families with limited resources. It’s getting harder and harder for them to pay their bills thanks to inflation, a tight housing market, and increased cost of living in Staunton.

Power prices have surged 13 percent across the state in the past year. I’ve had a number of conversations with residents who are struggling to pay their energy bills, and they’re not alone: a recent poll found that 76 percent of U.S. adults are concerned about their electricity bills.

SRHA residents should have the option to participate in shared solar, which allows renters and other Virginians who can’t put panels on their roofs to receive a credit on their utility bills – without requiring major upfront costs from them or from taxpayers. Shared solar takes power out of the hands of utility monopolies and puts it back in the hands of people.

Unfortunately, a number of complications are making shared solar harder to participate in than it should be. Putting unnecessary restrictions on shared solar runs contrary to the whole point of it – democratizing access to low-cost energy, giving people the option to choose how they’re getting their electricity, and strengthening our state’s grid.

We have a tremendous opportunity at our fingertips: to expand access to shared solar and bolster our state’s energy independence while catalyzing economic growth.

In 2023, Virginia was rated as the state that received the most electricity from other states. Shared solar generates energy closer to where it’s used, easing energy burdens and supporting sustainability as electricity demand rises. Our state is currently home to more than 660 data centers – a number that seems likely to keep growing, with demand growing right alongside it.

Big picture, shared solar has the potential to bring significant economic opportunity. One study estimated that Virginia’s shared solar program is expected to result in $5.6 billion in economic activity, 46,000 jobs, and $1.2 billion in tax revenue over its lifetime.

On a smaller scale, even 10 percent reductions in energy costs would meaningfully benefit our affordable housing residents, especially elderly people relying solely on Social Security and families without transportation who struggle to afford grocery costs and other basic needs.

Last year, the state legislature directed the State Corporation Commission to reform the shared solar program’s administrative charges for subscribers and grow the program. At the end of last month, the SCC put forth a more reasonable minimum bill that allows all Virginians to participate in the program while avoiding fees related to Virginia Clean Economy Act requirements.

Gov.-elect Spanberger has voiced her support for developing and deploying solar in “commonsense locations such as abandoned mine sites, former industrial sites, rooftops, and parking lots, and locations where the reduction in energy costs would have an impact on the local community, such as schools and public buildings.”

I couldn’t agree more that expanding access to shared solar is a critical component of Virginia’s energy future. Doing shared solar the right way means ensuring its benefits reach communities that too often get left behind. The more Virginians who have access to this option, the more we can lower costs while bringing much-needed capacity online.”

Nehemias Velez is the executive director of the Staunton Redevelopment & Housing Authority.

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