Governor Mike Dunleavy signed Senate Bill 152 into law on Tuesday, August 13th. This legislation is designed to increase renewable energy options, lower electric costs for Alaskan ratepayers, and reduce natural gas usage.
The bill, sponsored by Senator Bill Wielechowski, D-Anchorage, establishes a virtual net metering program for small-scale renewable energy generation, making it a significant step forward in the state’s clean energy initiatives.
Under the current system, net metering allows ratepayers to lower their electric bills based on the electricity they generate from renewable sources like solar panels or wind turbines. However, many Alaskans, including renters and condo owners, have been unable to benefit from this program due to the lack of on-site space for renewable energy installations. Senate Bill 152 addresses this issue by enabling multiple ratepayers to pool their resources and receive net metering benefits from a single renewable energy project.
The bill allows for power generated from a centralized renewable energy source to be purchased through a subscription model. This innovative approach will enable homeowners and tenants, who may not have access to consistent solar or other renewable energy sources, to enjoy cost savings, improved reliability, and other community benefits.
With twenty states already having formal community energy programs and several others operating at the utility regulation level, this new initiative in Alaska could contribute to the addition of 7.3 GW of new solar capacity nationwide by 2030. Utility customers participating in community energy projects typically save between 5 and 15% on their utility bills through monthly credits.
“This will open up new possibilities for renewable energy development in Alaska. By allowing ratepayers to pool their resources, we are ensuring that everyone, regardless of their housing situation, can benefit from lower energy costs and a more sustainable future,” said Senator Bill Wielechowski. “This bill will not only save Alaskans money but also drive investment and job creation in our state’s burgeoning renewable energy sector.”
Private investors have already shown interest in community solar projects in Alaska, indicating strong support for the bill. The legislation also aims to achieve an 8% increase in renewable energy on the Railbelt, which could help offset natural gas usage from Cook Inlet gas supply.
Senate Bill 152 will take effect 90 days from Tuesday, August 12th.