By Evan Dube
Isaias caused 1.4 million people in New Jersey to lose power this summer. It is shocking that a storm much less powerful than Hurricane Sandy caused a significant number of blackouts. Thousands of New Jerseyans were left without power even a week later after this storm. What you may not know is that hundreds of households were also able to power through these power outages using solar power generated on their roof and stored in batteries at their home.
I am glad to see that the New Jersey Board of Public Utilities (BPU) is investigating what went wrong, but it’s clear they must act now to advance local clean energy technology that can help people keep their lights on and reduce the demand for electricity on our overall grid.
Public Service Enterprise Group (PSEG), the owner of the leading utility servicing New Jersey and parts of New York, recentlyannounced a plan earlier this year to sell all fossil fuel generating assets by 2021 and “focus investments on building a cleaner, more efficient and modern grid.”
The company’s decision to move away from fossil fuels is an important step that will support New Jersey’s transition to 100% clean energy by 2050. However, their “investments” will come with a big price tag for anyone who pays an electric bill in PSEG territory.
Utility capital investments matter because of the fine print. Utilities get paid for building traditional infrastructure. The more they build, the more they get paid to the tune of billions of dollars. All energy consumers pick up the tab for utility spending. We can’t afford to continue to spend money on a traditional centralized grid that holds New Jersey back.
Today, there are over 125,000 solar installations on homes and businesses in New Jersey that provide nearly 5% of the state’s total power. A growing subset of these also has batteries, which keep the lights on when the grid goes down, something that decades of a utility spending billions of dollars can’t seem to fix.
As New Jersey moves toward a more resilient, equitable and affordable clean energy future, PSEG should not be the only game in town. Nearly400 solar companies currently sell and operate in New Jersey. This competitive market helps keep costs low for consumers. People in every community in this state want to take control of their own electricity and reduce energy costs. Preserving a competitive, community-driven marketplace makes sure this will happen.
Reducing energy costs through community-driven solutions is particularly important for low-income communities and communities of color. Arecent study found that African-American homeowners paid $408 in utility expenses more every year on average than white homeowners, all else being equal. This is one regressive burden too many for people already fighting to keep their heads above water as we continue to navigate the COVID-19 crisis. While investments in grid maintenance and clean energy assets like utility-scale solar play a role in reaching climate goals, they cannot be the only method.
So what’s the bottom line? People should be empowered with options –– beyond the utilities’ offerings –– to control their energy futures.
Home solar and battery storage solutions can give New Jerseyans control over their energy future and hedge against increasing electric bills. The unemployment rate in New Jersey last month hit 8.2%, meaning tens of thousands still remain without a job. People simply can’t afford higher electricity bills and the uncertainty that they may lose power.
Fortunately, we’re at a pivotal moment in New Jersey’s energy transition where we can expand access to reliable locally-sited clean energy resources, provide more opportunities for jobs, and better manage increasing electric rates. We need to encourage utility cooperation and partnership with clean energy providers, who are on the cutting edge of innovation, cost reduction and consumer empowerment.
It’s time for a better energy system –– one that will remake our dated, economically inefficient existing energy infrastructure into a more consumer-centric, affordable, clean and reliable system that puts people in control.
Evan Dube is vice president of public policy at Sunrun.
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