South Dakota needs a wind energy policy that is as robust as its winds.
Financial incentives that would have spurred further development of the state's fledgling wind energy industry were gutted from the Energy Bill that passed Congress late last year. There is no Renewable Electricity Standard in that bill, nor any extensions of the tax credits the wind industry needs.
So it was a breath of fresh air to hear Gov. Mike Rounds push for a renewable energy objective right here in South Dakota. He proposes that 10 percent of the state's electricity needs be produced from renewable sources, such as wind power, by the year 2015. And we support a new tax structure for large wind farms that would make South Dakota a more attractive place for them to do business.
While we applaud state efforts to "go green" and encourage investment in wind farms, we urge state officials to encourage individuals to develop renewable energy sources by adopting some form of net metering laws in South Dakota.
Net metering is an electricity policy for consumers who own renewable energy sources, usually small wind turbines or solar panels (think Ed Begley and his environmentally-friendly reality TV show, "Living with Ed.") Homeowners like Begley are able to "bank" their excess energy production with their utility company. Under net metering, a renewable-system owner receives credit for a portion of the electricity they generate and return back to the utility's grid system.
Ideally, in windy South Dakota, the owner of a small wind turbine would have his or her electricity meter spinning backwards on many days. In reality, that does not happen because South Dakota sticks out as one of the few states that never adopted net metering. The Legislature rejected it in 2003 and it has not gained much consumer interest since.
Many states with higher electricity rates, including Montana, Nebraska, North Dakota, Iowa and Wyoming, have net metering laws. The specific regulations that govern net metering credits can vary considerably from state, city and county, and some are more equitable than others. But no matter how it is implemented or administered, net metering is good for the environment. Ultimately, that's good for all of us.
As they struggle with high fuel costs in 2008, many farmers and ranchers might take advantage of an economic incentive to invest in wind and solar power, if net metering would create a market for it. Net metering gives some financial "power" back to consumers by encouraging individual investment in renewable energy technologies. We think it should be available to consumers here.
Posted in Opinion on Tuesday, February 5, 2008 11:00 pm
© Copyright 2009, rapidcityjournal.com, 507 Main Street Rapid City, SD | Terms of Service and Privacy Policy