Sustainable energy enthusiasts are energized by an Oklahoma attorney general’s opinion that sheds additional light on regulatory issues involving rooftop solar systems installed on homes and businesses in the state.
They believe Oklahomans finally could have an opportunity to join other people across the nation who are able to economically obtain the systems using power purchase agreements that include lease-to-own terms.
They and Mike Teague, Oklahoma’s Secretary of Energy and Environment, note such deals are extremely popular on the nation’s West Coast and in parts of the Northeast, where retail electricity rates offered by utilities are quite high.
But because the questions the opinion addresses are quite technical in nature, it might be a while before similar agreements are offered here.
Nevertheless, local solar enthusiasts are juiced.
“It has been viewed forever and ever that you couldn’t offer (those types of agreements) in Oklahoma,” said Tyson R. Taussig, president of the Oklahoma Renewable Energy Council.
“I view it as casting a glimmer of sunlight on this issue,” Taussig said. “If the opinion gets backed up, it will be a huge development because it will allow motivated, creditworthy individuals in our state to buy their own rooftop solar systems at a really reasonable price. It would open up a whole new market.”
In other states
Questions addressed by the attorney general’s opinion specifically dealt with the legality of third-party ownership of power production.
That’s because in most other states where rooftop solar has thrived, electricity and its retail costs effectively have served as the metric owners of homes and businesses evaluate before choosing whether or not to invest in the technology.
“The electricity cost is the currency of the agreement,” Teague explained.
Typically, agreements elsewhere between property owners and solar companies are power purchase agreements that include lease-to-own arrangements with long-enough terms to keep monthly payments lower than what the property owner had been paying to buy their grid-delivered power.
As part of the deal, the solar installer becomes the property owner’s power provider. The solar installer also typically is paid by the utility for any excess power the system generates that is put back on to the grid, usually at the retail rate other customers pay for the energy.
Taussig said the property owner, meanwhile, gets power from the rooftop system he is buying at a savings.
“So you end up being net cash positive,” Taussig said.
Jim Roth, an attorney who is the dean of Oklahoma City University’s School of Law and a former member of the Oklahoma Corporation Commission, agrees that the business model thrives in other parts of the nation.