A recent government meeting focused on the value of solar energy in Denton, Texas, highlighted significant discussions regarding the compensation for customers with rooftop solar systems. The meeting, attended by city council members and utility representatives, aimed to clarify the financial implications of solar energy integration into the local power grid.

Denton Municipal Electric (DME) General Manager Tony Puente emphasized that the proposed compensation for solar energy would not involve federal funds or grants, but rather be funded by other ratepayers who do not have solar installations. The estimated differential for solar compensation is around $460,000, which would be a direct cost to non-solar customers.

Consultant Jill Shupek presented findings from a study that evaluated the value of solar energy based on three main components: avoided costs, societal benefits, and local policy-driven incentives. The study found that the avoided cost of solar energy could range from 4 to 7 cents per kilowatt-hour, depending on whether the energy is sourced from the market or through existing power purchase agreements. However, the societal benefits, which account for the environmental impact of reduced emissions, were deemed negligible since Denton already operates on 100% renewable energy.

The council members expressed concerns about the implications of these findings, particularly regarding the fairness of charging non-solar customers to subsidize solar energy compensation. Discussions also touched on the potential for incentivizing battery storage systems, which could allow solar energy to be used during peak demand times, thus providing additional value to the utility.

The meeting concluded with a recommendation to implement a compensation rate of 4 cents per kilowatt-hour, with the possibility of revisiting this rate every five years as part of regular cost of service studies. The council is expected to deliberate further on the proposed changes and their impact on both solar and non-solar customers in the coming weeks.