Due to the overwhelming popularity of the state-funded Renewable Energy System Cost Recovery Program, Benton PUD has placed a moratorium on accepting incentive applications in the program for new qualified renewable energy systems for which a Net Metering Interconnection Agreement was received after April 18, 2016 by the utility.
The moratorium will allow time for Benton PUD to analyze the state-mandated funding cap, conduct customer and contractor meetings to gather feedback and determine the utility’s level of participation going forward.
Similar to other utilities throughout the state, Benton PUD has experienced a significant increase in applications for renewable energy system interconnection - solar installations - over recent months which has increased the probability of hitting the state-mandated incentive payment cap sooner than expected.
The Renewable Energy System Cost Recovery program allows utilities to voluntarily administer Renewable Energy Incentive Payments (REIPs) to its customers who are installing solar. This program is fully funded by the Washington State Department of Revenue, up to a cap, by allowing a utility to take a deduction on its Public Utility Tax return. Total tax deductions and incentive payments are subject to a cap of one-half percent of a utility’s taxable power sales.
Between 2008 and February 2015, Benton PUD had only 50 net metering customers; however over the last 14 months, the utility has received 80 new net metering applications, more than doubling the applications received in the first seven years. To date, Benton PUD has 130 customers participating in the program. The new systems installed this year will generate for a full year in 2017 (July 1, 2016 - June 30, 2017); therefore, steps to analyze the risk of exceeding the cap need to be taken now.
Benton PUD remains supportive of new systems installed and will continue to offer net metering which enables customers to receive credit for the power generated by their system at the full retail rate.
Renewable energy systems for which Net Metering Interconnection Agreement applications were received on or before April 18, 2016 and Benton PUD community solar projects are not impacted by the moratorium and remain eligible to receive incentives.
Benton PUD will continue to process solar interconnection applications for customers and recommends they continue to apply for Renewable Energy System Cost Recovery Certification from the state in the event the utility is able to offer state-funded incentive payments to additional qualified systems in the future.
Benton PUD has scheduled a meeting for customers at 5:00 p.m., May 24, 2016 at the Benton PUD auditorium. Customers will be updated on the Renewable Energy System Cost Recovery Program and are encouraged to ask questions and provide input.
A meeting will also be set up for solar contractors in the near future.