The business relationship between JEA and its customers who use solar panels to generate electricity brought about 50 advocates for solar energy to the utility’s board of directors meeting Tuesday.
JEA is in the process of modifying its solar energy strategy, which includes the Net Metering and Distributed Generation Policies involving the utility buying excess power generated by private solar panel owners.
When solar panels installed on homes or businesses generate more electricity than is needed, JEA collects the excess electrons through a two-way electric meter. Those electrons are then sent to JEA’s power grid.
Solar system suppliers and owners are concerned that JEA purchases the excess electricity at wholesale prices, but charges customers the retail price for electricity the utility provides.
The big question for JEA is the fair value of electricity generated by a private solar system compared to JEA’s cost to generate and deliver the same amount of electricity.
Mike Anthiel, executive director of the Florida Solar Energy Industries Association, described JEA’s proposal under review as “an attack on residential solar.”
Melissa Dykes, JEA chief financial officer, reported the utility has been working for a month with stakeholders, including the Sierra Club, U.S. Green Building Council, local solar energy contractors and home energy designers to develop policies for net metering.
That’s the process by which JEA bills customers for their net usage of electricity based on how much is supplied by the utility and how much is transferred to JEA by the customer’s solar system.
Dykes said electricity can be generated by a home solar panel for about 25 percent of the cost of the same amount of electricity provided by JEA, taking into account the cost of generation plus infrastructure expenses.
While the solar panel transfers excess electricity at its location directly into the grid, JEA’s costs include fuels used at power plants, transmission lines, transformers, substations and other operating costs, such as payroll and benefits for employees.
“It’s like comparing apples to peanuts,” said Dykes.
A question in terms of the value of excess electricity JEA purchases from private solar panels is when it’s available.
Since the energy cannot be stored, it is transferred to the grid when it’s available, which is not during JEA’s peak demand periods.
Dykes said peak demand in summer is early evening, when people get home and begin using electricity for air-conditioning, cooking and laundry.
In winter, peak demand is early in the morning before the sun is high enough in the sky to generate electricity with solar panels.
The utility is, however, committed to increasing the percentage of solar power used to generate electricity for its nearly 450,000 residential and commercial customers.
Dykes said JEA soon will increase the amount of solar power it can supply to customers. It’s one of the few power generation methods that — unlike fossil fuels such as coal and natural gas — does not increase the amount of carbon going into the environment.
JEA currently purchases electricity from a 12-megawatt solar panel facility near Baldwin and plans to increase its solar power supply to 50 megawatts by Dec. 31.
Sites have been selected for a network of new 1-megawatt to 7-megawatt solar power facilities scheduled to go online beginning in July.
When the increased capacity is in operation, solar energy will represent 1.4 percent of JEA’s total generating capacity.
The board voted to conduct a workshop on solar energy and net metering at its March 15 meeting and will schedule a public hearing on the issue in April before a decision is made on net metering policy.
In other business, the board approved an extension in the closing date for developers Peter Rummell and Michael Balanky to purchase the former Southside Generating Station site along the Downtown Southbank.
Originally scheduled to close March 1, the $18.5 million real estate sale contract was extended to Nov. 30, with an additional 30 days to close.
Nancy Kilgo, JEA director of government relations, said the developers have “demonstrated much due diligence” and have secured several permits needed for the development of a planned retail and residential community, but other permits needed have not yet been granted by the state and by the city.
The developers of The District – Life Well Lived will pay a $50,000 contract extension fee in addition to the $200,000 deposit made when the agreement was signed.
The fees are non-refundable if the sale does not close, Kilgo said.
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