The Georgia House could vote as early as this week on a bill that would give the Public Service Commission sweeping powers to regulate solar panel installers and set policies aimed at weeding out companies that charge customers with overpriced equipment and make false claims like much the solar panels will reduce their energy bills.
The House Committee on Energy, Utilities and Telecommunications unanimously approved last week House bill 73 after several committee meetings were held on the proposal for state utility regulators to determine which companies are allowed to finance and install solar panels and the ability to revoke licenses and fine companies that break the rules.
However, there are some criticisms of the bill, including turning regulation over to a PSC, which some clean energy groups have criticized for not providing enough support for solar power development.
Dallas Republican Rep. Joseph Gullett’s bill would allow the five-member commission to issue “authority certificates” to solar companies before the start of 2024.
As part of the application process, companies must provide financial disclosures, conduct background checks on employees and contractors going to households and companies, and ensure information about the companies is readily available to the public.
Each company would also need to provide potential buyers with a detailed overview of the cost of the panels and the labor required to set up the equipment, the expected lifespan of the panel, the terms of the loan agreement, and how much using solar panels could help reduce the cost reduce electricity bill costs.
The PSC and the solar industry would also create a public training video for potential buyers.
“What we’re not trying to do is shut down solar arrays in Georgia,” Gullett said at a committee meeting. “It’s the exact opposite of what I’m trying to do. I’m trying to make sure the bad actors get shut out of the market and that the good actors have a great field day and make a lot of money out there.
And as the solar industry has grown in recent years, so has the number of complaints from Georgians to the utility regulator about financial firms approving high-priced loans and solar power companies making false promises of zero-cost utility bills and friendly tax credits.
In some cases, rooftop solar companies pay a customer’s electricity bills for a few years, with the homeowner believing they are getting free electricity before the bills unexpectedly resurface. Gullett referred to a woman from his area who doesn’t speak English and who was tricked into signing a contract to buy the largest roof panels to fit on her trailer.
Solar industry associations and environmentalists have long supported the regulation of the industry in Georgia, but there is disagreement over which agency should be in charge.
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Last year, organizations including the Georgia Solar Energy Association, the Southern Alliance for Clean Energy, and the Sierra Club of Georgia criticized the PSC’s approval of a $1.8 billion Georgia electricity tariff plan that it claimed would he would be tantamount to a sledgehammer for a popular pilot program that would allow 5,000 Georgia homes and businesses to install solar panels on their rooftops. In that case, Georgia Power was able to cut payments to solar panel owners who resell electricity to the grid, arguing that those customers aren’t paying their fair share of the distribution costs by comparison,
Mark Woodall, Sierra Club Georgia Conservation Chair. said there were problems with out-of-state scammers ripping people off, but the attorney general’s consumer protection division should investigate and take action against those who break the law.
Enforcement should be done by another body that has the best interests of consumers and the solar industry, he said.
“Georgia is one of the worst states in the United States for rooftop solar. That’s because of Georgia Power and the PSC,” Woodall said.
Reece McAlister, the executive director of the PSC, told members of the House Energy Committee earlier this month that the commission is confident of regulating a new industry that will involve some responsibilities similar to those now being made at utilities. In addition to Georgia Power and Atlanta Gas Light, the PSC has limited oversight of 41 member electrical companies and 52 municipal electrical systems.
Commissioners would have 60 days to approve applications under the new solar industry rules.
McAlister said PSC staff will work with the solar industry to draft the rules and regulations for lawmakers to review in time for companies to obtain licenses before Jan. 1.
“We don’t want to stand in the way of people getting their jobs done. So the people that want to stay in business and be ready on January 1st, we want to get that out early so we can start the application process, do the screening, get those people certified and ready to go on day one January.
Marietta GOP Rep. Don Parsons, chair of the House Energy Committee, said he understands that some in the industry are not enthusiastic about the PSC, which regulates solar companies, but it is an agency experienced in working with utilities and the many people already reach out to the PSC with their grievances about companies.
“The chair believes the PSC is the right place to do this because it’s about power generation,” he said at a committee meeting. “It has to do with the sale of electricity.”
Rep. Robert Dickey, a Musella Republican, said the application process must be easy for new companies to enter the market.
“I understand the barriers to entry, people need to be able to do business,” said the member of the House Energy and Utilities Committee. “At the same time, there are egregious activities that need to be balanced in a way that allows small businesses to thrive, launch while protecting consumers.”