BOTETOURT COUNTY, Va. – For Mark Hanson, the 56 solar panels lining his property are more than just a power source — they’re part of his commitment to renewable energy and financial independence.
“I like renewable energy because it’s helping to clean up the planet and the grid,” Hanson said. “It also benefits people. In seven years, you get a payback, so you can save a lot of money on your electric bill.”
Hanson’s home runs entirely on solar energy, from charging his Tesla to powering his vintage 1979 pinball machine. When his panels produce more electricity than he uses, the excess is credited to his bill under a system called net metering.
However, Appalachian Power (APCo) is proposing a significant reduction in net metering rates, drawing criticism from solar advocates.
Currently, customers earn 16 cents per kilowatt-hour for surplus energy sent back to the grid. Under APCo’s proposal, that rate would drop to 4 cents per kilowatt-hour.
For solar panel owners, the difference is stark: a system producing 500 kilowatt-hours of surplus energy currently earns $16 but would only bring in $4 under the new plan.
APCo spokesperson Ashley Workman defended the proposal, saying, “Customer-generators still avoid the full cost of electricity when their systems are generating electricity that is being simultaneously used at their homes. When the system is producing more than the customer is using at that time and sending energy to the grid, they would be compensated for that excess, exported energy at the proposed avoided cost rates.”
Solar advocates like Hanson see the proposal as a step backward, potentially discouraging homeowners from adopting renewable energy.
“They like it when they sell you renewable energy, but they just don’t want you saving money in your backyard,” Hanson said.
If approved, existing solar customers would retain their current net metering rate for 25 years.
The State Corporation Commission (SCC) will hold a hearing on APCo’s proposal in May. Advocates worry that if the plan is adopted, Virginia could follow in the footsteps of other states that are seeing the effects of a lower net meter rate.
“They’ll be moving backward like California is doing and Hawaii did it too,” Hanson said.
For now, Hanson and other solar users remain committed to their renewable energy systems while closely watching the SCC’s decision.