News > Colorado’s solar gold mine – Why we must protect net metering

Colorado’s solar gold mine – Why we must protect net metering

• Energy democracy & policy

November 8, 2024

• Ben Delman

Colorado isn’t just sitting on a gold mine — we’re living under one. Solar energy is powering billions of dollars of investment and creating thousands of great jobs, while cutting down on air pollution and carbon emissions. These remarkable benefits are the direct result of fair policies, like net metering, which ensure solar owners receive credit for the electricity they generate. To keep these benefits flowing, Colorado must continue supporting policies that allow solar owners to earn fair credit for their solar investment.

How net metering works

Solar owners don’t always use all the electricity they generate. When excess solar power is produced, it flows out through their electric meter and is shared with neighbors. In return, solar owners earn a credit for the electricity they shared. This credit lowers their electric bill.  Under Colorado’s net metering system, this extra solar energy is credited at the same rate utilities charge customers for power. Net metering ensures that people who invest in solar energy receive fair credit for the power they share and can ultimately save money by investing in solar panels.

Solar energy benefits everyone 

Net metering doesn’t just benefit solar owners – it supports the entire community. By reducing reliance on expensive, polluting energy sources, it helps stabilize electricity costs and lower the need for additional infrastructure. 

During peak energy demand, when electricity is most expensive, utilities typically rely on gas-powered “peaker plants.” These plants only operate during periods of high demand, making them costly and inefficient. The problem? We all pay the price in higher energy bills and increased air pollution. 

Fortunately, solar power generation aligns with peak demand times. This is especially true during the sunny summer afternoons when air conditioners are running. By meeting this demand with clean, locally produced solar energy, we avoid the need for costly peaker plants and lower everyone’s energy costs. 

Additionally, rooftop solar helps keep infrastructure spending in check. Since solar energy is generated close to where it’s used, it reduces the need for costly transmission and distribution upgrades. 

The economic impact of solar energy

Solar power isn’t just lowering energy costs; it’s also boosting Colorado’s economy. According to a new study from Strategic Economic Research, net-metered solar energy has created more than 8,900 jobs, injected $2.6 billion into the state’s economy, and reduced carbon emissions by 3.2 million tons. 

It’s an exciting time for solar energy in Colorado. New federal incentives are helping make solar more accessible than ever, and the Environmental Protection Agency’s Solar for All program has allocated $156 million to help low-income families benefit from solar power. 

At the state level, recent legislative efforts have expanded access to solar energy. Renters and others now have opportunities to participate in community solar programs, and lawmakers have cut red tape to speed up the process of activating new solar installations. At the heart of these efforts is net metering – a policy that makes these advancements possible. 

Utilities are fighting solar progress

Despite the overwhelming benefits of solar, net metering is under attack from Colorado’s monopoly utilities. These utilities profit from building out new infrastructure, whether it’s needed or not, since they can pass the costs along to customers in the form of higher bills. 

Rooftop solar energy disrupts this model by giving customers the power to choose where our energy comes from. Instead of embracing this shift, many utilities are lobbying against net metering, seeking to limit our energy independence. This isn’t just happening in Colorado – similar battles are unfolding across the country as utilities try to stifle solar growth and protect their profits.  

Let’s keep Colorado’s solar momentum going 

Colorado is rich in natural resources, and solar energy is one that delivers tangible benefits for everyone. It’s helping families save on their energy bills, creating jobs, and protecting our environment. But to keep reaping these rewards, we need to defend net metering from attacks by utility companies. You can do so by contacting Governor Polis. Let him know Coloradans support our gold mine in the sky.