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Council directs staff to revise solar ordinance after state law changes on net metering
Summary
City staff explained statutory changes that require municipalities to credit exported solar energy; council asked staff to draft parallel‑generation/net‑metering ordinance options and to present them at the next meeting so pending projects can proceed with legal clarity.
City staff told the Baldwin City Council that state statute changes affecting solar net‑metering require municipalities to revise how they credit customers for exported (reverse) power.
Jeff from the electrical department explained the change: where the city previously allowed residents full retail credit up to monthly usage and then forfeited excess, state law now requires that exported power be credited to the customer. The law also defines sizing formulas tied to a customer’s last 12 months of usage (or, for new construction, a finished square‑foot formula). Under new statute the minimum compensation for exported energy is the utility’s avoided energy cost (roughly 2–3¢ per kWh), though communities may structure parallel generation rates differently for classes such as commercial customers.
Jeff said the city can keep its existing approach by classifying customers as parallel generation with distinct classes for residential and commercial customers; that approach narrows allowable system size and reduces the chance of persistent excess export. He cautioned the council that if the city treated everything as net metering it would allow larger systems (a statutory multiplier was discussed), which could increase exported energy and municipal exposure.
An applicant who submitted a solar project noted the ordinance delay is holding up their project; legal counsel cautioned that many statutes take effect July 1 and that approving under an earlier ordinance could create compliance problems. Staff said they had submitted an initial application on July 29 and that municipalities generally have 90 days to respond; council asked staff to draft ordinance options and return with a recommendation at the next meeting so projects can move forward with clear legal footing.
Council agreed staff should present a side‑by‑side comparison of current policy and proposed ordinance changes (including sizing and how excess exported energy will be credited or rolled forward) and to consider grandfathering rules for previously approved systems.
Next steps: staff to prepare ordinance language and scenario analyses (bill impacts for sample customers and new‑construction cases) and return to council at the next meeting for first/second readings as appropriate.
