Solar Energy A Safe, Smart Investment

By Rebecca Sobel
Executive director, Coalition for Clean Affordable Energy (CCAE)

August 30 - Every hour, the sun radiates more energy onto earth than the entire human population uses in one year. That's a lot of solar potential. In New Mexico, we're lucky to have bragging rights to world-class solar resources, ranking second in the nation after Arizona, with potential to provide 1,000 times more energy than Public Service Company of New Mexico's (PNM) current demand.

Unfortunately, our bragging rights stop there. New Mexico ranks 20th in the nation in hosting grid connected solar electricity, while California, New Jersey and Colorado occupy the first three slots.

We know solar makes sense. Harnessing the power of the sun has been a part of our culture for millennia; in the 21st century it's past time we harness this energy source.

Awaiting the upcoming PRC ruling on PNM's solar investment plan, we must ask ourselves how much we are willing to invest in solar solutions. Opponents of the plan have asked the PRC to reject the filing, citing increased costs. Perhaps nothing is simple or easy in the energy industry, and the bitter fight over New Mexico's solar future is providing an object lesson that the path to new energy won't be without its own messy entanglements of politics, power and place.

In 2007, New Mexico passed the Renewable Portfolio Standard (RPS) requiring investor-owned utilities to use renewable energy — 10 percent in 2011, 15 percent by 2015 and 20 percent by 2020.

Currently, the RPS is met almost entirely with wind, which has proven to be cost-effective but is limited by its intermittency. A diverse portfolio of renewables is needed to create an energy supply immune to the environmental and cost risks of traditional fossil fuels, so the PRC adopted rules for diversity targets of renewables, including 20 percent of the RPS from solar and 3 percent from distributed generation (typically rooftop solar). These rules include cost-caps to ensure the transition to new energy is accomplished cost-effectively and without unduly burdening ratepayers.

While renewable energy may appear more costly than fossil fuels, it is the true costs of traditional electricity and newer alternatives that should be compared. Front-loaded subsidies were granted to the fossil fuel industry, and even larger ones for nuclear power. The U.S. government has historically provided significant subsidies to traditional energy sources, making traditional electricity look like a great deal. Subsidies provided to renewables are about 100 times less, making clean energy seem more expensive than it really is in comparison.

The costs of fossil fuels also include increased pollution, climate change, environmental damage and increased health costs.

Since 1970, utility rates have increased 5.5 percent on average annually, and rates continue to rise as the costs of accessing fossil fuels increase and are passed on to ratepayers, granting zero financial security. In addition to the obvious benefits of solar, (reduced or eliminated electricity bills and a cleaner environment), investing in solar electricity provides you with equity. Having solar installed on homes increase their value. And there are no rate increases — solar fuel is free.

Community benefits of solar are substantive. Accountants, electricians, construction workers, engineers, and more benefit from the design, manufacturing, development and sale of utility scale and residential solar systems. This is real security.

Solar is the new 30-year Treasury bond. It's a nice, conservative investment that both safeguards your wallet, and protects your community, environment and climate. And you'll get a better return than owning a Treasury bond.

Originally published in the Albuquerque Journal.

The Rio Grande Chapter of the Sierra Club is a member of CCAE.