The Oklahoma Bar Journal May 2024

to rates and tariffs. Municipally owned electric systems garner their oversight from elected bodies of the municipality, typically the mayor and city council or a utility trust authority. Electric coopera tives are run by an elected Board of Directors composed of mem bers within that utility’s territory. Utilities modify rates when they deem changes are necessary. Take net metering for example: Net metering is a billing mechanism that credits and/or compensates solar energy system owners for the electricity they produce and add to the grid against the energy they consume. Net metering rates vary widely by jurisdiction and can be adjusted in different ways depending on the utility. Net metering rates have changed often in the last decade as more people install solar and utilities grapple with how to shift finan cial losses and address additional power on the grid. According to the North Carolina Clean Energy Technology Center, an advocacy center for a sustainable energy economy, there has been an uptick in new and increased fees and charges, such as grid access fees or solar customer fees. 10 All of these variations in type of utility, oversight and sometimes unex pected changes in rates and fees are a barrier to increased solar in Oklahoma because it can be con fusing and frustrating for some one looking to take control of their energy use by installing solar. SOLAR FINANCING Rooftop solar companies and their customers rely on a vari ety of financing options as solar energy develops and endures as an industry. Financing mecha nisms available to those installing

without greenhouse gas emissions, which are known to contribute to climate change. 8 For power generation, solar is an alternative to and decreases reliance on our fossil fuel resources, which are finite. Furthermore, solar provides power generation at the source, which limits the need to transport fuels such as coal and natural gas across long distances. But this is no anti-fossil fuel article. Oklahoma will undoubtedly maximize its energy resources, such as oil and natural gas, for its many non-power generation uses long into the future. But the state should also recognize the addi tional benefits solar can offer all Oklahomans, and the laws should reflect how to also maximize another of Oklahoma’s ample and renewable resources – sunlight. There are many reasons to use more solar power, but there seems to be only one perennial, non-political argument against its increased use: Solar systems are costly. Encouragingly, cost concerns have decreased due to the dramatic decline in the price of solar equip ment over the last decade. 9 Cost aside, before a system can be added to a home or business, one must consider the applicable state law and utility rate options. The majority of Oklahomans live in monopolistic territories for their retail electricity. There are other types of utilities, however, each with varying abilities to alter rates across the state. Oklahoma’s electric utilities include publicly traded investor-owned utilities (IOUs), electric co-ops and munic ipally owned electric utilities. IOUs with monopoly territories are subject to the jurisdiction of the Oklahoma Corporation Commission to make changes

SOLAR ENERGY 101

When discussing solar, a few definitions are important. Distributed generation (DG), often called “behind the meter” solar, is comprised of “technologies that generate electricity at or near where it will be used, such as solar panels and combined heat and power.” 5 For simplicity purposes, solar devel opments can be divided into three categories: utility-scale, commu nity and rooftop. First, utility-scale solar consists of very large projects located “in front of the meter,” where power is generated and then fed directly onto the transmission grid and sold to wholesale buyers. Second is community solar, which is sometimes referred to as a solar garden or shared solar. These are smaller than utility-scale projects but still large in size. Community solar has the ability to power whole neighborhoods. These systems are located “behind the meter” and are connected to the grid through distribution lines similar to the ones you might find in your neighborhood. Third, rooftop solar installations can be commercial or residential, are also behind the meter and are located onsite – mounted onto the ground or the roof, as the name suggests. For the purposes of this arti cle, much of the discussion is focused on rooftop solar. Although Oklahoma boasts considerable solar potential, its current policy deci sions and less-than-welcoming laws have hindered the state from capitalizing on its rooftop solar potential, resulting in a lower ranking among states maximizing solar capacity. 6 In fact, many states have far less solar irradiance than Oklahoma yet are still ranked much higher. 7 Among its many benefits, solar generates power

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

44 | MAY 2024

THE OKLAHOMA BAR JOURNAL