Time for the Legislature to Act, Public Citizen Says in Response to Denton Council’s Anti-Solar Vote

October 23, 2024

Time for the Legislature to Act, Public Citizen Says in Response to Denton Council's Anti-Solar Vote

The North Texas City Became Latest to Impose Unfair Barrier to Rooftop Solar

DENTON, Texas - On Tuesday, the Denton City Council approved a solar rate change that makes Denton Municipal Electric (DME) the latest Texas utility to pump the brakes on rooftop solar adoption, highlighting the need for the Texas Legislature to step in and provide property owners with certainty about solar installations.

Last night, the Denton City Council approved a DME proposal that upends how residents are compensated for energy their solar installations send to the grid for other customers to use. The vote radically lowers the compensation rate from 10 cents per kilowatt-hour to 5 cents, the latest case of a Texas utility adopting policies that either fail to recognize the true value of solar or are hostile to the technology. A recent study using best practices shows that the avoided costs provided by rooftop solar in Texas are 19 cents per kilowatt-hour - and that's before accounting for environmental benefits.

Kamil Cook, climate and clean energy associate with the Texas office of Public Citizen, issued the following statement:

"DME and other Texas utilities are making a mistake that will ultimately cost their communities. Rooftop solar and batteries are valuable to the grid and offer resilience and reliability. Utilities that impose unfair solar compensation rates make the math of a solar installation investment very difficult. This trend is fueled by a lack of understanding of the full suite of benefits provided by rooftop solar, including reduced transmission and peak energy costs for the utility.

"ERCOT recently told state leaders that demand on the vulnerable Texas grid will double by 2030. Lawmakers should adopt best practices as a standard for utilities to use to come up with fair rates, making it possible for any Texan to invest in a solar installation that will add supply and take pressure off the grid. Texas has the second highest rooftop solar potential of any state and should use the resource to make a cleaner, cheaper and more reliable grid."