Opinion by Courtney MacDonald
In the face of customer complaints about rising costs, Appalachian Power recently defended its proposed rate increase. As expected, the company assured readers that it prioritizes customer care. But at the same time, its proposal directly limits all customers’ ability to benefit from solar panels on their own rooftops.
Currently, customers with rooftop solar receive fair credit for any excess energy their systems produce, aka Net Energy Metering. Now, AEP is asking the Public Service Commission to approve a dramatic cut to this credit rate. In doing so, AEP is attempting to undermine West Virginians’ freedom to opt for small-scale, homegrown solar energy.
Even more startling, AEP’s proposal puts an unreasonably tight timeline on customers’ ability to go solar before these changes take effect. Announced on Nov. 1, the proposal required customers to have had the interconnection paperwork for their solar systems submitted by Dec. 31, 2024 and completed by April 30, 2025. Anything later than that, and customers would be stuck with the dramatically lower net metering rate.
To understand why this timeline is unrealistic, consider that the process of going solar involves many steps. Those include choosing a solar installer, reviewing and signing a contract, submitting paperwork to the utility and the local permitting office, and completing the installation.
Lee Casto is the director of a West Virginia solar installation company called Revolt Energy. According to Casto, even if a customer had signed a contract in December, their system would likely not be fully interconnected by the deadline. That’s especially true given the time of year — winter weather and holiday closings are almost guaranteed to delay the process. Plus, a sudden spike in demand would require solar installers to expand their workforces, and as with any industry, training new hires takes time.
AEP’s proposal, along with its aggressive timeline, would hamper West Virginians’ ability to choose where their electricity comes from. And it wouldn’t just affect those looking to go solar.
All ratepayers would miss out on the benefits of a community with more rooftop solar. That’s because solar provides locally owned, locally generated power that contributes to a stronger, more resilient electrical grid.
And let’s not overlook how this proposal affects businesses and organizations. Many small businesses choose to go solar so they can save money and take control of their expenses. But AEP’s slashes to fair solar crediting would mean that for some businesses, solar may no longer be a cost-effective option. “This proposal makes it hard on the solar industry, too, because AEP has created uncertainty around what solar will look like,” Casto says. That could mean a reduction in well-paying jobs for West Virginia solar installers. “And it’s making it harder on the people of Appalachia, who can’t make informed decisions on their energy future.”
A central part of AEP’s justification for its rate proposal is that the company needs more money to repair and develop its grid infrastructure. But by making rooftop solar less viable, this proposal is actually hampering the growth of a more resilient, distributed energy system that could insulate against the risks of blackouts and fluctuating energy prices.
Instead, AEP insists on relying heavily on centralized fossil fuel infrastructure. That type of infrastructure will always be vulnerable to storms and spikes in demand, meaning it will continue to need short-term fixes. That translates into continual rate increases for customers. A more robust energy system — one that sees the benefits of rooftop solar — would serve West Virginians better in the long term.
As solar owners and supporters, we’re not picking on coal, we’re just tired of our wallets getting picked over.
All said, If AEP is serious about reducing costs and improving reliability, it should focus on policies that encourage solar energy adoption, not stifle it. They should be leveraging available opportunities like those offered through programs such as the DOE’s Energy Infrastructure Reinvestment Fund– which can achieve modern and reliable grid technologies, while saving utilities and ratepayers money.
By maintaining fair credit for solar, investing in modern grid technologies, seeking funding opportunities, and embracing community-driven solutions, AEP can build a more reliable, affordable, and sustainable energy system that benefits all customers.
Courtney MacDonald is a coalition coordinator for West Virginians for Energy Freedom.