Dane County court overturns residential solar decision

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The Dane County Circuit Court on April 26 overturned a 2022 Public Service Commission of Wisconsin decision to allow a Stevens Point family to use third-party financing to install solar panels on their home. Renewable energy advocates called the ruling a setback for state homeowners seeking clean energy.

The family installed a small solar system on their home through a third-party arrangement with Amherst-based NorthWind Solar. Third-party financing usually refers to solar leases and power-purchase agreements. The Wisconsin Public Service Corp., the family’s gas and power utility, argued the solar developer’s ownership could classify them as a public utility under Wisconsin law.

In May 2022, Vote Solar petitioned for the family and the PSC later determined the third-party agreement wasn’t regulated as a public utility. However, utilities appealed the decision and moved the case to the Dane County Court, which on Friday ruled on the side of the appeal.

“PSC may again choose to declare whether North Wind is or is not a ‘public utility,’ but it must make that declaration consistent with the legislature’s definition in Wis. Stat. § 196.01(5),” Circuit Court Judge Frank Remington wrote in his conclusion. “That statute plainly says that any declaration about an entity’s status as a public utility will require PSC to determine whether the entity, and not any of its individual projects, transmits energy to the public.” he added.

“This decision is a setback for equitable solar financing in Wisconsin,” said Brad Klein, a senior attorney at the Environmental Law & Policy Center. The group supports environmental policy in the Midwest.

“We are surprised and disappointed by the court’s decision, which further muddles the law regarding a common rooftop solar financing method available in many other states,” Klein continued. “If left uncorrected, the decision could limit much-needed options for low- and moderate-income families looking to participate in the clean energy transition. We are closely reviewing the ruling and considering next steps to ensure Wisconsin families have the freedom to fund solar,” he added.