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Vol. 26, No. 5, jun 2007

Voluntary net-metering encourages St. George customers to go solar

Group of contractors standing on building roof in front of solar panels

(Left to right) City of St. George employees Gerald Whipple and Orrin Farnsworth join installers Jeff Pomeroy, Sara Baldwin and Brian Smith to celebrate the completion of the 5-kW solar array the city installed on its Water and Energy Administration building. (Photo by Ken Gardner)

Just because Utah's net-metering rule excludes municipal utilities, that didn't let St. George Energy Services off the hook—not with its customers, anyway. "Customers knew that investor-owned utilities in the area offered net-metering, and we kept getting calls asking if we had a similar program," said Rene Fleming, conservation coordinator for St. George Energy Services. "We want to stay competitive with other local utilities and provide programs that our customers want."

Vision also played a part in the municipal utility's voluntary decision to offer net-metering for solar and wind installations. "The director and staff understand how important renewable energy is going to be in meeting future demand," Fleming stated. "After all, St. George is in the Sun Belt. We should be taking advantage of local resources."

Policy encourages installation

Since the city adopted its net-metering policy in 2005, 10 customers have done just that, installing a total of 33 kW. The conservation coordinator admits to being pleasantly surprised at the response. "My goal was 10 installs in the first year, but I figured we'd be doing well if we received five requests," recalled Fleming.

Also surprising was the size of the systems customers were installing. The largest residential system is 4.8 kW. The smallest, she added, is a 0.5-kW array—too small to be eligible for the city rebate that accompanies the net-metering program. "The customer was very committed to going solar, and he has plans to expand his system later," observed Fleming.

The city pays $2,000 per installed kW with a limit of 3 kW for residential systems and 10 kW for commercial customers. Employ/Ease, a local staffing agency, recently completed installing St. George's first commercial system, a 5-kW array. Customers must be net-metered to receive the rebate, which also applies to wind energy systems, though none have been installed so far. "We don't recommend wind," admitted Fleming. "The resources here in the southwestern tip of Utah just don't justify the investment."

Benefits, present and future

Under St. George's net-metering policy, renewable energy credits from the systems belong to the city. For now, Energy Services has no plans for the green tags, but Fleming has an eye on the future. "A renewable portfolio standard is inevitable, whether it is state- or Federally-mandated," she said. "When the day comes, the green tags will help us comply."

To reap the more immediate benefits of solar power, the city installed its own system on the Water and Energy Administration building in April. The 5-kW array is designed for future expansion up to a total of 10 kW and is equipped with Fat Spaniel software to track energy generation and avoided emissions. A kiosk in the building's lobby will display the information and educate visitors about solar power. The data will eventually be available on the city's Web site as well. "I've been very pleased with the system's performance so far," Fleming said.

Facing challenges

St. George's solar mini-boom has encountered some challenges, and one is shared by the entire state. "Utah has a very limited contractor pool," Fleming acknowledged. "There are two contractors in St. George and one each in Hurricane, Cedar City and Ogden."

She said she still provides interested customers with the short list and advises them to get more than one quote before installing a solar system. The state is considering some sort of certification for solar installers. Such a program could expand the pool of qualified contractors and foster a better understanding of interconnection issues. 

Another issue is that the contractors are electricians or engineers, rather than solar technicians, she noted. "We've had to educate both the contractors and the customers about our installation policy."

Specifically, St. George requires manual, lockable disconnect units to be installed at the meter in case the inverter fails. From the contractor's point of view, an inverter failure is very unlikely, and customers may see the control as an added expense. "For us, it's a safety issue," said Fleming. "Our linemen will be working around the system, and they need to be sure it is shut off."

Green power, energy-efficiency options

St. George residents who are concerned about energy and the environment don't have to generate their own electricity. They can buy 100-kWh blocks of power from wind and low-impact hydro facilities through the utility's Clean Green Power program.

Customers who prefer saving to spending can find information about saving energy on the city Web site, along with monthly conservation tips. The city also offers rebates on ultra-low-flow toilets that have been through Maximum Performance testing. The models must use less water and clear the bowl on the first flush, and they have to continue to perform if the flapper is replaced.

Even though it separated its electricity and water utilities in 2002, St. George recognizes that saving water is closely tied to saving energy. The city recently got a grant to provide incentives for dishwashers and clothes washers, including coin-op units for laundromats and apartment buildings with common laundry facilities. Also, the water department offers free lawn water audits performed by college interns. "They check the soil type, design an irrigation schedule and recommend repairs and adjustments to sprinkler systems," Fleming explained. "Landscaping has to get more efficient.”

Citizens take control

If St. George seems like a community that is unusually serious about energy, history may explain why. A 1991 book, Making the Desert Bloom, The Story of Water and Power in St. George, describes how a small, city-owned hydro system powered by water from an open ditch first supplied residents with electricity in 1909. However, the city sold the problem-plagued system to a private businessman seven years later, along with a 25-year franchise. The operation eventually evolved into the Southern Utah Power Company and moved to Cedar City in the early 1930s. "St. George was very rural then and serving the area was not a high priority for the utility," said Fleming. "People felt like they had no control over reliability or cost."

When the franchise expired in 1940, St. George decided to take control of its own energy future. "It was, by all accounts, a heated meeting, but it ended with a vote to form a municipal utility," Fleming said.

Since St. George Power and Water began operating in April 1942, the citizens have continued to tell their municipal utility what they want, and the utility listens.  Clearly, St. George likes calling the shots when it comes to power issues, and that is easier to do when you are both customer and utility.

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