Florida voters overwhelmingly approved a constitutional amendment on solar energy in August. This November, voters will decide on another amendment that could change the way we look at solar in Florida.

Amendment 1 has three parts to it, and on the face of it sounds pretty good to the average voter.

Some solar energy advocates, however, are urging voters to “Vote Yes on 4, No on 1.” (“4” refers to Amendment 4, which passed in August.) Those advocates include a multi-partisan coalition (Floridians for Solar Choice), with the support of the League of Women Voters, who say the utility industry is trying to hinder solar’s progress in the state.

Amendment 1’s supporters, meanwhile, are a bipartisan group (Consumers for Smart Solar), and yes, the utility industry has put up millions to support the amendment, among other groups. They accuse the solar industry of only wanting solar in Florida on their terms. They say the amendment protects consumers.

Supporters, critics and experts all agree on one thing though --  this is amendment is about what solar energy in Florida will look like in the future: Who regulates it, how it is accessed, and whether utility companies can charge solar users for upkeep to the grid.

Amendment 1 needs 60 percent approval from Florida voters in order for it to pass.

Again, Amendment 1 has three parts. We will break down each part of Amendment 1, why people are for, why people are against it, and what the experts say.

Part 1

This amendment establishes a right under Florida’s constitution for consumers to own or lease solar equipment installed on their property to generate electricity for their own use.

WHAT SUPPORTERS SAY

“It provides a safety or comfort, so no future legislature or special interest can take it from you,” said Screven Watson, a board member for Consumers for Smart Solar.

“By putting it in the constitution, it’s tucked there safely,” Watson added.

WHAT OPPONENTS SAY

Critics argue that although this sounds like a favorable thing for voters who support solar, the wording is misleading and affects third party sales.

Third party sales refers to the ability to sell power directly to a customer by someone other than an electric company. Third party sales is a popular model in the solar industry.  

Chris Ann Lunghino, energy policy manager for Southern Alliance for Clean Energy and an opponent of Amendment 1, says the phrase “for their own use” governs who can provide energy, setting up barriers.

“The amendment is so broadly worded that it could be interpreted to prohibit third party sales in the future in Florida,” Lunghino said.

Consumers for Smart Solar says if this amendment passes, lawmakers could still lift the ban on third party sales “tomorrow.”

WHAT THE EXPERTS SAY

Home solar systems are already legal under Florida law. What isn’t legal are third party sales.

Florida is one of only four states nationwide that forbids third party sales. 

Dr. Jim Fenton, head of the nonpartisan Florida Solar Energy Center at the University of Central Florida, says most of the home photovoltaic systems throughout the country (a k a PV, your rooftop solar panels), are sold through third party sales.

"In New Jersey, Home Depots sell third party solar for your roof," Fenton said.

New Jersey, in fact, is one of the fastest growing markets for solar PV in the country, in part because of its solar financing model and third party solar, according to the Solar Energy Industries Association.

In 2015, Florida had enough solar energy installed in the state to power 36,000 homes. That same year, New Jersey had enough systems installed to power 267,000 homes. And New Jersey has about half the population Florida does: 8.9 million to 19.89 million.

Steve Kalland, director of the nonpartisan North Carolina Clean Energy Technology Center, says although it’s true the amendment doesn’t stop third party sales from becoming legal in Florida, it does make it more difficult.

“In essence, what the utilities are saying is true,” Kalland said. “But to me, it would be challenging to write something to allow third party sales around the amendment as it’s structured.”

Part 2

State and local governments shall retain their abilities to protect consumer rights and public health, safety and welfare….

WHAT SUPPORTERS SAY

“We leave government in the process of solar energy, and all energy, in this amendment,” Watson said.

Watson points to fraud in Arizona and elsewhere as the need to have the government involved in regulating solar energy.

“Every industry has bad actors,” Watson said. “And they are coming to Florida, and if we don’t put the right people to protect our consumers, we have a lot of elderly that are susceptible to scams.”

Watson also cites solar bankruptcy as a problem. If a homeowner signs a 30-year lease for a solar system, Watson says some have not been able to sell their homes because people are unwilling to take over the lease.

WHAT OPPONENTS SAY

Critics of the amendment say government is already involved in protecting the consumer through consumer protection laws and other laws already on the books.

“Florida and other states already have consumer protection laws on the books that empower them to catch and punish bad actors,” Lunghino said. “Other states have successfully used existing consumer protection laws to crack down on bad actors.”

Lunghino said the fraud cases in Arizona and other states were a small amount, perpetrated by “fly-by-night companies” looking to capitalize on solar.

He also said any protections that Consumers for Smart Solar say the amendment will provide are no more than what Florida’s government has already put on the books.

“The Amendment does not expand any authorities of state and local government agencies, including the Florida Public Service Commission,” Lunghino said.

WHAT THE EXPERTS SAY

Kalland acknowledges there has been fraud in the solar industry but points out there is fraud in any industry.

“The industry has done a lot to nip this in the bud before this happens,” Kalland said.  “I think there’s growing attention to that issue, but whether it requires regulatory oversight [in Florida], I think that’s something that’s not required at the penetration levels we’re talking about today.”

You can go to the NC Clean Energy Technology Center website to see solar energy policies that affect Florida.

Voters can also look up ways to make sure a contractor is properly licensed through the Florida Solar Energy Industries Association.

Part 3

… And to ensure that consumers who do not choose to install solar are not required to subsidize the costs of backup power and electric grid access to those who do.

DEFINITION

This part of the amendment largely is dealing with the concept of net metering.

This graphic from Florida Power and Light explains Net Metering.

“From the utilities' perspective and homeowners' perspective, over the course of a year, I made as much electricity as I consumed,” Fenton said. “On any given day, I make the electricity I need for the whole day, by net metering, essentially pushing the power meter backward.”

This takes stress off the power grid. A study by the Brookings Institute shows net metering can benefit those who don’t have solar because of that relief on the system.

WHAT SUPPORTERS SAY

Consumers for Smart Solar says as solar grows in Florida, cost-shifting issues down the line mean nonsolar users may have their rates raised, essentially subsidizing solar users who use the grid.

“As more and more people go off-line, who is going to keep up the grid? There’s a cost shift,” Watson said.

The problem is, utilities are required to provide electricity to homes, even if they have solar.

“But to have solar and not be on the grid, it isn’t feasible. Batteries are cost-prohibitive,” Watson said.

Watson says that means companies need to be able to levy fees on solar users to help pay for facilities upkeep so that nonsolar users are not affected.

WHAT OPPONENTS SAY

Lunghino says solar customers are actually benefiting the utility system when they self-generate power with solar.

“Amendment 1 would create a legal presumption in the Florida Constitution forever that solar customers aren’t paying their fair share of the utility’s costs by generating their own power and sending any excess back to the grid,” Lunghino said.

The LWV says that if Amendment 1 passes, utility companies can try to influence lawmakers or the Public Service Commission to weaken or eliminate net metering, or impose fees on solar users.

WHAT THE EXPERTS SAY

There is some discussion going on in the solar industry over whether net metering will be the best policy going forward as more people switch to solar.

However, Kalland points out that cost-shifting is not a problem in Florida right now nor in much of the country and won’t be for some time.

“Florida is probably a number of years before the market is at the point where anyone needs to have this conversation,” Kalland said.

“Florida’s solar penetration is maybe 1 percent… it’s not a conversation you need to have until it reaches 5 percent. Net metering works fine until then.”

THE BOTTOM LINE

Whether Amendment 1 wins approval from 60 percent of Florida voters in November, solar energy experts say solar is here to stay.

“The price of Florida is solar is dropping. And we will be putting people to work,” Fenton said.

Fenton says there are 140,000 people employed in the energy efficiency industry in Florida, including solar, compared with 75,000 people employed in agriculture, forestry and fishing. And it’s only going up.

The ultimate question this amendment poses is not whether solar will exist, but how voters want it to exist.

“They [opponents] don’t like it because it’s not their solar. It’s the right solar policy for where we find solar now,” Watson said.

“Solar advocates want solar deployed every way possible -- rooftop, community-based and utility-scale,” Lunghino said. “And Florida needs policies in place to facilitate solar deployment to reap its public health, climate protection and economic benefits.”

 “If you read between the lines, there’s really only one conversation going on,” Kalland said. “The utilities want to control the game, and the solar industry doesn’t want that. In the end, it’s really about whether the traditional energy model continues in Florida.

“Both kind of futures are going to lead to more solar being involved.”

Fenton says either way, the future is bright for solar energy in Florida.

“I’m ecstatic; solar has gotten to the point where [people] are talking about it. It doesn’t even matter that Amendment 1 passes,” he said. “PV on your roof is democracy.”