Clean Energy Mandates Bring Solar Front And Center Stage
Today’s ambitious renewable energy mandates are shaping the electrical grid of tomorrow. The last five years have seen several landmark energy standards passed that share the common goals of addressing climate change and improving air quality. While we can all unite behind climate action, some energy analysts forecast a steady rise in utility rates as new power generators are constructed, older units are upgraded and transmission infrastructure is made to accommodate the changes. Here are the details you need to know about some of the nation’s most ambitious clean energy standards, and what you can do to power your home or business with renewable energy without carrying the financial burden.
New York’s Renewable Energy Mandate: 70% By 2030
New York’s groundbreaking climate law, the Climate Leadership and Community Protection Act (CLCPA), mandates that 70% of New York’s electricity comes from renewable sources by 2030, and 100% clean energy by 2040. This enforceable law covers all sectors of the economy. The CLCPA builds upon the earlier New York Clean Energy Standard (CES) to move up the timeline and enshrine core provisions into state law. Lawmakers crafted the new regulations to clean up the air and greatly reduce the emissions of greenhouse gases. They plan to reach these accelerated goals by requiring that utilities serving the state quickly increase their solar, wind, and battery storage capacities while promoting energy efficiency upgrades.
New York already has one of the highest average commercial electricity rates in the nation. As of July 2021, the Empire State’s commercial average rate of 18.36 cents per kilowatt-hour is 59% higher than the national average. Now, New York utility National Grid is asking for a series of rate hikes totaling 11.8% over the next three years. The utility claims that the rate hike would help pay for electrical grid upgrades. For the average commercial facility in New York, this would amount to an increase of $86 every month, totaling over $1,000 in additional facility operation costs each year.
California’s Clean Energy Mandates
In 2018, California lawmakers passed the California Renewable Energy Act (CREA) which requires that 100% of retail electricity comes from zero-carbon sources by 2045. A plan detailing how California plans to achieve this outlines needed investments in renewable energy, battery storage capacity, and modernized infrastructure. There are skeptics, but the world’s fifth-largest economy already hit 95% renewable energy for a brief period on April 30, 2021.
In August, the California Energy Commission took it a step further by establishing a new mandate on top of the CREA that requires all new commercial and residential buildings to have solar and battery storage. Aside from any costs that California’s largest utility will incur in the transition to a zero-carbon future, PG&E has already requested an unrelated 18% rate increase that will go towards wildlife prevention programs. Will the California Renewable Energy Act lead to even higher rate increases? It’s too soon to know for sure, but significant capital investments will be needed to bring grid infrastructure up to the mandated standards. Just the possibility and PG&E’s track record have many looking to go solar on their own terms.
San Francisco and the Bay Area
As a locally-based utility for San Francisco residents and businesses, CleanPowerSF has been central to the region’s successful climate initiatives thus far. San Francisco’s carbon emissions have already been reduced to 41% below 1990 levels. On Earth Day 2021, CleanPowerSF announced a commitment to achieve 100% clean energy by 2025, just three years away. If successful, this landmark achievement would be reached two decades before the state mandate. San Francisco isn’t the only Bay Area city committed to climate action. San Jose consistently ranks in the top five for most installed rooftop solar capacity in America, a reflection of the superb economics for going solar in the Bay Area.
Massachusetts Is a Leader of Climate Action
In March of 2021, Massachusetts Governor Charlie Baker signed the Clean Energy and Climate Plan (CECP) for 2025 and 2030 into law. The bill, also known as An Act Creating a Next-Generation Roadmap for Climate Policy, represents a significant commitment beyond the scope of the state’s 2008 Global Warming Solutions Act. Under the new law, Massachusetts must achieve net-zero emissions no later than 2050. The law also details two benchmarks: by 2030, the state’s carbon emissions must be 50% below 1990 levels and 75% below 1990 levels by 2040. To get there, the mandate requires that Massachusetts utilities like National Grid, Eversource, and Unitil increase their renewable energy portfolio by at least 3% every year beginning in 2025.
The Takeaway: Commercial Solar Helps You Take Control of Your Energy Future
Forward-thinking localities around the nation are plotting a path to a clean energy future. Even the federal government is considering a clean energy mandate. New energy infrastructure will be an expense for utilities, and it’s no surprise that they would pass the cost on to customers. But businesses have another option. Rather than waiting around for your utility to comply with clean energy mandates and pass the cost on to you, your facilities could go solar now and take advantage of an affordable and predictable monthly electric bill. Caliber Solar offers a hassle-free commercial solar package that is tailored for the needs of your business. We’re driven by our core belief that switching to solar should be effortless. Our industry-leading data scientists apply research-backed energy models to unlock the formula for an unbeatable solar solution that is tailor-fit to meet the needs of your commercial facility or home. Get your offer to go solar with Caliber Solar today.