Court Overturns PSC decision that Allows Leasing of Solar Energy Systems

Last week, a Dane County court overturned a 2022 decision by the Public Service Commission that would have allowed family in Stevens Point to use third-party financing to install solar on their home.

Under that agreement, the family would lease the system from North Wind Renewable Energy Cooperative. Similar lease agreements are common in other states, but utilities have opposed their use in Wisconsin, saying they are not allowed under existing state law.

The family in Stevens Point sold their home and did not move forward with the project, according to North Wind Founder Josh Stolzenburg.

Even so, the Wisconsin Utilities Association last year challenged the PSC’s decision in Dane County Circuit Court.

Last Friday, the court sided with the utility association, sending the issue back to the Public Service Commission. The court said the PSC incorrectly interpreted what constitutes a “public utility” in its decision because it focused on the singular project and not North Wind’s activities as a whole.

State law defines a “public utility” as any entity owns, operates, manages or controls equipment used for the “transmission, delivery or furnishing of heat, light, water or power either directly or indirectly, to or for the public.”

Utilities are largely opposed to third-party financing for solar installations, saying it violates state law by allowing installers to act as a utility without being regulated as one.

“We’re pleased with the decision of the court affirming our position that if you provide energy to the public, either directly or indirectly, you must be regulated as a public utility,” Bill Skewes, executive director for the Wisconsin Utilities Association, said in an email.