How Montana’s House Bill 643 and Others Like It Could Impact the Solar Industry Statewide
In a time in which catastrophic climate events are growing in severity and frequency, the general concern for environmentalism and growth in sustainability industries has never been stronger in the United States. Yet here in Montana, a state defined by its natural beauty in a spiritual and economic sense, many law-makers and political leaders are choosing to ignore the crisis at hand. In this case, proposed House Bill 643 could severely impact the growing solar economy within our state by limiting the economic benefit of investing in solar for residential and commercial property owners alike.
What is House Bill 643?
Montana’s House Bill 643 is a proposed bill that would reduce the net metering rates for energy company customers that utilize alternative energy systems to offset their electric bill. After a 2019 ruling by Montana’s Public Service Commission, it was established that there would be no alterations to the net meter credit rates for solar producing properties. HB643 could result in a way for utility companies to work around that ruling while also limiting the authority of the Public Service Commission.
It is also possible that the passing of HB643 or future bills like it could result in extra costs for solar customers, further limiting the financial incentive to invest in renewable energy solutions. It is important to note that the impacted customers are not just homeowners. A bill of this nature would have a significant impact on any on-grid property owner looking to offset their energy bill and environmental footprint, including businesses and non-profit organizations.
Impact on the Solar Industry
Montana’s solar industry continues to grow, but there is no question that we are playing catch up with most of the nation. According to the Solar Energy Industries Association, Montana is ranked in the bottom four states in terms of total employees in the solar industry. Currently, Montana only ranks higher than Wyoming, North Dakota and Alaska in solar jobs. Due to limited sun exposure during winter months, Montana solar companies are already facing a harder sell than other states in providing prospective customers with economically beneficial solar options.
Fortunately, the Federal Tax Credit (currently sitting at 30%) for renewable projects, and options such as the REAP Grant for rural small businesses have resulted in solar investment being a more financially advantageous decision for Montana customers. Still, a bill that limits the financial reward for investing in solar could have major ramifications for the industry’s growth in Montana.
Update on HB643
As of now HB643 has been tabled and is not moving forward at this point. It is important to note though that similar bills that limit the financial benefits of net metering programs have been proposed every single year since 2017. If you are passionate about ensuring that Montana continues to move forward in the nation’s growing renewable economy, voice your opinion to your local representatives and make sure your voice is heard.
Here is a link to the Montana House of Representatives page that has contact information for local representation throughout the state: https: //leg.mt.gov/house/
Sources:
https://fbapp.congressweb.com/MEIC/bills/detail/id/33408/type/state/
https://www.seia.org/states-map