Texas Senate Bill SB545

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/15/09
• Voted on by Senate: 4/21/09
• Out of House Committee: 5/21/09

Caption

Relating to the creation of a distributed and wholesale solar generation incentive program and to encouraging the use of solar energy devices.

Impact

The legislation is poised to impact state energy policies significantly. By mandating electric utilities to develop a structured incentive program, SB545 aims to stimulate the solar market in Texas. The bill outlines that utilities will be allowed to recover costs associated with the incentive program through nonbypassable fees, which are capped at ten cents for residential customers and up to ten dollars for industrial customers. This would create a sustainable financial framework for promoting solar energy without imposing excessive burdens on consumers.

Summary

SB545 proposes the establishment of a distributed solar generation incentive program aimed at increasing the installation of solar generation systems across residential and commercial properties in Texas. The bill mandates electric utilities to administer this program in a cost-effective, market-neutral, and nondiscriminatory manner. The initiative seeks to promote solar energy usage while ensuring that the associated costs are reasonable and manageable for consumers.

Contention

There are potential points of contention surrounding SB545. Concerns may arise regarding the itself fees for consumers and whether the established caps are adequate to cover the utilities' costs while promoting enough incentive for solar installations. Moreover, discussions may focus on the balance between incentivizing solar energy and the long-term viability of the program as energy costs fluctuate. The provision that limits incentives to five years after the establishment of the program could also spark debate about the accessibility and attractiveness of solar generation for consumers in the extended term.