New Law's Solar Energy Requirement Sets PSNH on Edge

Public Service of New Hampshire officials say they generally support the state's new Renewable Energy Portfolio law.

But they have reservations about the law's requirement that they furnish a very small slice of that renewable energy from solar power.

Martin Murray, a spokesman for PSNH says that's because that small slice adds up to enough electricity to power about 460 homes a year.

Our analysis shows that will require almost ten acres of solar panels, that's equivalent to more than seven football fields. So, conservatively, we estimate that the cost of building that amount of solar would be more than 26 million dollars. That's for the first year. That's for the year twenty ten……

The new law is looking for 25 percent of the state's electricity to come from renewable sources by 2025.

Most of that total is slated to come from wind, geothermal, wood and a few other sources.

The law sets up a monetary incentive to encourage investors to build new renewable energy projects.

But state officials recognize those incentives might not be enough to encourage solar projects to be constructed.

Joanne Morin of the Department of Environmental Services says the law establishes a so called “renewable energy fund” if no solar power is available.

What will happen is the utilities will probably pay into the fund at 150…dollars per megawatt hour. It will generate some …monies that could then be used to do the same thing that the req market would do and that would be to either put out grants to stimulate the technology or help some of those wanting to purchase the technology or help defray some of the cost.

Solar energy industry representatives say they're encouraged by New Hampshire's commitment to renewable power.

They say they think the state's solar targets are well within reason.

A company called “GT Solar” in Merrimack sells solar panel manufacturing machines to other companies that make the panels.

Fred Kocher, a spokesman, says he thinks the stage is set for solar to become more widespread.

Solar is growing worldwide. In fact, one of my, one of our concerns is that it's growing overseas, not so much here. But that will change. As you may know, there's a 30 percent tax credit created by the congress, that's still in force, and is going to be extended…..and that 30 percent tax credit like other tax credits around the world have accelerated the use of solar and have brought the cost down.

The solar industry's enthusiasm for New Hampshire's Renewable Portfolio Law stands apart from PSNH's position.

But other electric utilities in the state share the solar industry view, not PSNH's.

Officials at the New Hampshire Electric Coop and Unitil Corporation both say they have no problems with state's solar requirement.

George Gantz, a vice president of Unitil, says for one thing, he already sees prices coming down.

And he says other factors are falling in place for solar, which he identifies as photovoltaic panels.

We see the technologies improve, the distribution channels have improved. You know there are major facilities now being built to provide those football fields of photovoltaic panels over a period of years.
State officials will have several chances to re-evaluate how solar power is performing under the new law.

The Public Utilities Commission has the job of checking whether the law is working the way it should.

And in about 5 years, the law requires the PUC to take a close look at all parts of the Renewable Portfolio Standard, and make any adjustments necessary to help solar and the other power sources grow.