By Chelsea Rivera, Central Florida Jobs with Justice
Today marks the seventh anniversary of Orlando’s adoption of its 100% renewable energy goals. While these policies represent a significant step in the right direction, Orlando and our energy providers still have work to do to protect our families and our environment.
Solar energy is a key part of achieving our clean energy goals. One of the essential elements of supporting solar adoption is allowing solar customers to receive a fair credit for the electricity they produce and send into the grid. However, the Orlando Utilities Commission (OUC) has proposed changes that threaten this fair credit system known as net metering. These changes will harm current and future solar customers, undermine Orlando’s clean energy initiatives and disproportionately impact low-income and vulnerable communities.
Currently, OUC uses a system called “net metering,” which ensures that solar owners earn a fair credit for the extra energy they produce. Net metering benefits everyone by encouraging more families to go solar, lowering costs for all residents, and producing electricity where and when it is needed most. However, under OUC’s plan, net metering would be replaced with a new pricing structure called TruNet Solar.
TruNet would increase fees for solar customers and significantly decrease their credit rate for energy production. Alarmingly, the proposal would not grandfather in any existing systems, meaning all OUC solar customers will be forced onto this unfair rate plan. This is especially problematic for customers who switched to solar to enjoy the financial incentives that OUC had promised.
Orlando is home to a significant number of low-income families and vulnerable communities – by one estimate, 15.2% of local residents live below the poverty line, meaningfully higher than the national average of 12.5%. Many of these families rely on OUC’s services and are already struggling with high energy costs, especially during the sweltering summer months.
Western and southwestern Orlando communities pay on average 130% higher than the average of their monthly income on energy bills, and these communities will face even steeper bills in the face of these changes. OUC’s proposal to introduce time-of-use rates and reduce solar credits will only make it harder for these families to afford their energy bills and access affordable clean energy.
The financial burden from these changes will hinder low-income families’ ability to thrive and contribute to a sustainable future. Orlando residents must raise their voices and demand fair and equitable policies that consider the needs of our most vulnerable populations.
The solar industry has created over 40,000 jobs in Florida – second most in the nation. It has benefited our workforces, our families, our financial well-being and our environment, but now OUC is threatening this important industry and its benefits for Floridians. The financial benefits of solar energy are increasingly attractive, with installation costs decreasing and utility rates rising. Homeowners across the state can save 50% or more on their energy bills through solar, often amounting to thousands of dollars in long-term savings.
OUC’s proposed changes threaten these economic benefits. The new time-of-use rates and demand charges will disproportionately impact those who cannot easily shift their energy use to off-peak hours, including working families, low-income households and facilities like nursing homes and hospitals that operate around the clock
We urge OUC to slow down and engage with community members and stakeholders to develop thoughtful and comprehensive policies that support solar adoption and fair energy practices. Rushing these changes is careless and risks creating sloppy policies that will ultimately hurt customers.
Solar energy plays a vital role in individual energy savings and community resilience by feeding excess electricity back into the grid. Maintaining net metering and fair rate structures is crucial for achieving Orlando’s renewable energy goals of 100% by 2050. These measures also enhance energy reliability and reduce the need for costly infrastructure investments.
OUC should reconsider its proposed rate changes for residential customers and implement policies that promote fairness and sustainability. By supporting net metering, OUC can help lower energy costs, foster economic growth through job creation and contribute to a cleaner, more sustainable future for all Orlando residents.
Chelsea Rivera is the Climate Equity Policy Fellow at Central Florida Jobs with Justice.
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