Governor Rauner has signed two bills that will help ensure solar development benefits farmers and rural communities in Illinois. The state’s solar industry worked with the Illinois Farm Bureau, local authorities and other stakeholders to shape SB 486, which creates a standard tax assessment value for solar farms in Illinois, and SB 2591, which sets standards for the construction and deconstruction of solar farms on agricultural land. The Illinois House and Senate passed both bills unanimously and Governor Rauner signed the final piece of legislation on August 10.

The solar property tax legislation (SB 486) sets a standard tax assessment value for large solar installations, creating certainty around the property tax revenue that solar farms will pay to local taxing bodies, helping to fund schools, roads and other critical services. Under the legislation, each megawatt of ground-mounted solar installed in Illinois will generate an average of $6,000 to $8,000 per year in property tax revenue. The industry expects to install up to 2,000 MW of ground-mounted solar farms by 2021, which will create a total $250-$350 million in property tax revenue over a 25-year lifespan. Under Illinois’ funding formula, approximately 70{0b7da518931e2dc7f5435818fa9adcc81ac764ac1dff918ce2cdfc05099e9974} of this revenue will be dedicated to funding schools.

“Solar energy is a rapidly growing industry in Illinois, and it’s good not only for the environment but also for the economy,” said Illinois Senator Don Harmon (D-Oak Park), sponsor of SB 486. “It is my hope that the revenue generated from this industry can benefit local schools and communities and encourage the continued growth of solar power in our state.”

“Solar businesses are ready and willing to create new jobs, clean energy and tax revenue to support Illinois communities. This bill provides a framework for us to move forward,” said Lesley McCain, executive director of the Illinois Solar Energy Association. “The solar industry was proud to work with the Farm Bureau, county tax assessors and school districts to develop smart solar legislation that benefits all Illinoisans.”

The solar industry worked in partnership with Environmental Law & Policy Center and other advocates to support smart solar policy in Illinois.

“ELPC has helped drive clean energy development in Illinois, and we are pleased that Governor Rauner has signed the solar energy legislation that the General Assembly passed this spring,” said Howard Learner, executive director of the Environmental Law & Policy Center. “The stage is set even better to accelerate solar energy development that is good for job creation and good for a cleaner energy future in Illinois.”

The farmland legislation (SB 2591) ensures that solar farms can coexist with agriculture in Illinois while providing long-term benefits to soil and water quality. SB 2591 requires that solar developers enter into an Agricultural Impact Mitigation Agreement (AIMA) with the Illinois Department of Agriculture prior to solar farm construction. The AIMA will set standards for solar construction and deconstruction and require financial assurances from developers that land will be restored to its prior use at the end of a solar farm’s life.

Governor Rauner signed SB 486 on August 10th and SB 2591 on June 29th. These bills will help Illinois reach its statewide goal of 25{0b7da518931e2dc7f5435818fa9adcc81ac764ac1dff918ce2cdfc05099e9974} renewable energy by 2025 while also driving economic development, new jobs and reducing pollution from electric generation.

News item from Illinois Solar Energy Association

California regulators relied on precarious assumptions and incomplete data to rationalize their decision to require every home in the state be fitted with solar panels.

The California Energy Commission made history when it voted in May to mandate every home carry solar panel installations. The rule — the first of its kind in the country — will apply to all newly built homes and low-rise apartment buildings beginning in January 2020, with some exceptions for shaded houses and people already involved in other renewable energy programs. (RELATED: California Will Force EVERY New Home Owner To Install Solar Panels)

The new mandate was the latest in California’s bid to be a leader in renewable energy development. Democratic Gov. Jerry Brown, a major proponent of climate change legislation, has continually pushed for a higher renewable energy mix in the state while attempting to phase out coal generation.

Besides touting the environmental benefits that would come with such a mandate, the California Energy Commission argued that it would ultimately save residents money. However, one policy expert has dumped cold water on those claims.

Steven Sexton, an assistant professor of public policy and economics at Duke University, outlined where the Commission relied on biased analysis and made flimsy assumptions on what the future costs of solar technology would be — mistakes that don’t reveal the true costs of owning solar panel, according to him.

“Though the solar mandate is unlikely to deliver huge savings to consumers, it certainly will raise the price of new and old homes,” Sexton wrote in an op-ed for The Wall Street Journal.

The Commission argued that homeowners would save money with solar panels. Instead of using an independent investigation, however, they relied on economic analysis from Energy and Environmental Economics Inc., a consultancy group that proposed the very mandate they were studying. Energy and Environmental Economics concluded that homeowners would pay $40 more in monthly mortgage costs but save $80 a month on electricity — a supposed 100 percent return on investment.

Adding further scrutiny to their energy savings estimations, regulators conducted the study with the assumption that that California’s net metering policy would remain the same. Net metering — a solar subsidy program that ultimately passes costs from panel owners to non-panel ratepayers — has been second guessed and reformed across the country. The California Public Utilities Commission is set to reconsider their net metering program in 2019, one year before the mandate is to go into effect. If regulators choose to scale back these subsidies, solar panel owners would likely lose money on such an investment.

Additionally, Sexton argued that the Commission was overly optimistic on the price of solar panel installation. They concluded that the cost was $2.93 a watt in 2016 and would drop 17 percent by 2020, but a study by the Lawrence Berkeley National Laboratory found that the average cost of panels to be $4.50 a watt for the 2- to 4-kilowatt systems the new policy requires.

Sexton argued that if California regulators were truly interested in the development of solar-generated electricity, they would look toward the economies of scale that is found in large solar farms — projects which produce twice as much electricity as the new mandate placed on small residential homes, but at the same exact cost.

“Sacramento politicians accuse the Trump administration of ignoring science and forgoing expert, independent review in pursuing its environmental and energy agenda,” he wrote. “They should look in the mirror.”

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Wells Fargo announced it has committed the capital in construction debt, as well as the tax-equity funding of $35 million for the new solar generation facility, known as FL Solar 5 in Orange County, Florida. This solar facility will include half a million solar panels and will also reduce greenhouse gas emissions by more than 57,000 tons per year. That’s the annual equivalent of removing 9,300 automobiles from the roads.

Origis Energy USA, a Miami-based solar energy company that delivers custom clean energy solutions for utility, commercial, and public-sector clients, developed the solar project and is providing the balance of the project’s capital as well as acting as the solar power plant’s engineering, procurement and construction provider.

“We are pleased to partner with Wells Fargo on this significant renewable energy project,” said Samir Verstyn, chief investment officer of Origis Energy USA. “Our team is focused on delivering superior customer service with sustainable energy solutions such as this one.”

Scheduled to be fully operational in December 2018, FL Solar 5 will produce and transmit low-cost, renewable electricity to be purchased by Reedy Creek Improvement District of Orange County, Florida.

“Wells Fargo is proud to be a part of impactful projects like FL Solar 5 that help our communities accelerate the transition to a lower carbon economy,” said Alok Garg of Wells Fargo Independent Power & Infrastructure group, a part of the Wells Fargo Energy Group. “We value our relationship with Origis Energy, a company that is in the forefront of creating a greener energy future.”

For the past 13 years, Wells Fargo has been a significant contributor to the advancement of clean energy in the U.S., with financing and tax equity investments energizing U.S. wind and solar. The bank has funded or committed to fund more than $6 billion in wind and solar projects throughout the U.S. Since 2012, Wells Fargo has invested and financed more than $70 billion in renewable energy, clean technology, “greener” buildings, sustainable agriculture and other environmentally sustainable businesses. In addition, Wells Fargo recently pledged to provide $200 billion in financing to sustainable businesses and projects by 2030, with more than 50{0b7da518931e2dc7f5435818fa9adcc81ac764ac1dff918ce2cdfc05099e9974} focused on clean technology and renewable energy transactions that directly support the transition to a low-carbon economy.

News item from Wells Fargo