Christina Spicer  |  August 3, 2021

Category: Household

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nationalgrid - renewable energy groups
(Photo Credit: Janet Julie Vanatko/Shutterstock)

Renewable Energy Groups Class Action Overview:

  • Who: A group of solar power producers have filed a class action lawsuit against public utility companies.  
  • Why: The renewable energy groups say that National Grid, PLC and other electric companies have been charging them illegal taxes to drive up the cost of solar power — and keep traditional utility companies in business.  
  • Where: The class action lawsuit was filed in federal court in Rhode Island.  

Renewable energy groups say that, despite growing alarm over climate change, public utility companies have been illegally charging them and others income tax to “disincentivize” solar and other alternative forms of electricity in a class action lawsuit filed Monday.  

The lead plaintiffs include a handful of renewable energy groups that produce solar power that is placed back on the grid. They want to represent others who produce solar power in Rhode Island, Massachusetts, and New York, claiming that electric power utilities, including National Grid, assess income taxes despite federal law barring such charges.  

The renewable energy groups explain that they put electricity produced by their solar power projects back on the grid, paying for the modifications required to do so. Electric power utilities, like National Grid, must pay the renewable energy groups for the power they produce, contend the plaintiffs. 

The renewable energy groups accuse National Grid and the other companies of impeding the progress of local renewable energy despite public policies meant to foster growth to combat climate change. 

“Independent renewable energy generators like Plaintiffs compete with electric utility companies like Defendants because the utilities, through subsidiaries, have ownership interests in power generation, both from renewables and from traditional sources,” states the class action lawsuit. 

The renewable energy groups accuse the companies of attempting to avoid a “utility death spiral” by wrongfully charging them and other solar power generators taxes, driving up their costs.  

The plaintiffs say that, under federal law, they are exempt from such taxes, but National Grid and the other utility companies are attempting to undermine policies supporting clean and green energy to stay afloat.  

In the face of electricity derived from renewable energy groups, National Grid and others in the utility industry have been taking “self-protective measures lest it follow Kodak and the land-line telephone companies into oblivion,” including imposing greater costs on solar, wind, and other forms of energy.  

The plaintiffs want National Grid and the other utility companies to pay them and other renewable energy groups back for the illegal taxes assessed. They also want a court order putting a stop to the practice.  

In the wake of a devastating winter storm in Texas and record-breaking wildfires in California, consumers are becoming more aware of the important role public utilities play in their daily lives. Texas power company ERCOT was hit with a class action lawsuit alleging it cut power to residents without warning during the state’s unprecedented February weather event.  

Californians have attempted to hold electricity companies accountable for wildfires caused by unmaintained transmission and power lines in several class action lawsuits. 

Do you use electricity from renewable energy groups? Do you think traditional utilities should support solar, wind, and other renewable energy sources? Tell us about it in the comment section below.  

The plaintiffs are represented by Seth H. Handy, Helen D. Anthony, and Justin T. Somelofske of Handy Law, LLC, David Kovel and John R. Low-Beer of Kirby McInerney, LLP, and Stephen M. Prignano of McIntyre Tate, LLP.  

The Renewable Energy Groups Class Action Lawsuit is ACP Land LLC, et al. v. National Grid PLC, et al., Case No. 1:21-cv-00316 in the U.S. District Court for the District of Rhode Island.


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2 thoughts onRenewable Energy Groups Class Action Says Utilities Thwart Clean Energy Efforts With Illegal Taxes

  1. Daniel Jamison says:

    I would like to know if there are any actions pending that address the excess energy solar panels generate every month. Rhythm was allowing credits to rollover month to month and waiving the line delivery charges. I signed up for that when I first got my panels. End of the first year the rollover credit no longer applies and I am hit with line delivery charges even though most months I generate more than I use which goes back out to the grid. I am thinking it was a deal with the salesman to sweeten the sale?? Now Rhythm is getting free energy while still passing on line delivery charges every month. Free energy for somebody. This just doesn’t seem right. Any ideas.

  2. Jeffrey Scholl says:

    I’m looking for any class action lawsuits in Texas about solar panel installation. There are two primary issues in play here.
    The first is that Oncor is running ads saying that battery backup is part of the solar panel installation. Oncor came to our door in May 2021 and told us that we would get solar panels and battery backup. They even took me out to my garage and then measured my wall next to my breaker box to make sure I had sufficient space for it. They then handed me off to Epic Power who handled the contract part of it. We explained that the reason we wanted the system was to ensure we would not have a power outage like what happened in Texas in Feb 2021. They assured us this would not happen with this system so we moved forward with the project,
    When the installation team, Titan showed up, I noticed that they never asked to see the garage for where the battery backup would go. They told me initially that that would happen at the end, later told me another team would do it and when I reached back out to Epic, was told it was not part of my contract. So either Oncor is doing a bait and switch in their ads or Epic Power cheated me.
    Secondly, most electric utility companies in Texas have cancelled their solar buyback programs, I.e. Reliant and Green Mountain. So most people who will sign up for solar panels won’t have a company who will support buyback, inwas directed to a company called MP2 Energy which is owned by Shell which gave me wholesale buyback. I have 32 panels on my roof and should be net zero or make a little. I was still paying MP2 over $100 a month, My last bill with them was for $170 which is more than I was paying without solar panels. I pay $153 a month for my panels.
    I just switched to a new company and have not received my first bill yet so don’t know but is supposed to be true solar buyback.
    I have to believe if I was cheated out of my battery backup and the lack of buyback options, this is happening to others.
    Buying a battery backup is minimum of $10k out of pocket.
    Would appreciate some help on this.

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