Orlando Sentinel

Calif. mulls putting a damper on residentia­l solar industry

- By Kathleen Ronayne

SACRAMENTO, Calif. — California regulators have proposed big changes to the state’s booming residentia­l solar industry, including cutting the discounts homeowners with rooftop solar and storage systems get on their electric bills when they sell extra energy back to the power companies.

California’s successful program to get more people to put solar panels on their homes has been at the center of a fierce debate between the state’s major utilities and the solar industry, and the California Public Utilities Commission’s proposed reforms have been highly anticipate­d.

The state’s three major utilities — Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison — say the savings solar customers get now are so great that those customers no longer pay their fair share for the operation of the entire grid.

The proposal this week by CPUC would reduce the incentives for going solar and roughly double, to 10 years, how long it takes California­ns to make back what they paid to install the systems. Buying rooftop solar panels and a system to store extra power costs about $40,000, according to the solar industry.

The CPUC said the reforms are designed to make the program, known as “net energy metering,” more cost effective and to ensure energy grid operation costs are shared fairly. But the solar industry and its allies warned the changes will make it harder for the state to achieve its clean energy targets, including generating 100% of retail electricit­y from renewable or zero-carbon sources by 2045.

California launched the program in 1995. California now has 1.3 million solar systems on homes, far more than any other state, according to the solar industry. That number will only grow because since 2020 all newly constructe­d homes in California must have solar panels.

But as solar panels proliferat­ed, and the cost of installing them went down, criticism grew. The three major utilities say the current setup allows solar customers to sell their energy back into the grid for more than it’s worth.

They say more needs to be done to make sure solar customers — most of whom still rely on power from utilities once the sun goes down — are paying for all the parts of the energy grid they use.

Power rates include many costs unrelated to energy generation, like transmissi­on, distributi­on and even wildfire prevention work. When solar households pay significan­tly lower electricit­y bills — or no bills at all — they’re contributi­ng less to those things.

That means more of the cost is shouldered by other customers, often households and renters without the financial means to install solar.

The utilities and the state peg that cost at $3 billion. The solar industry disputes that number, saying it doesn’t take into effect the savings for everyone when the utilities need to build fewer power plants and transmissi­on lines due to more residentia­l solar.

 ?? RICH PEDRONCELL­I/AP 2020 ?? California is considerin­g reforms that would reduce financial incentives for homeowners who install solar panels. Above, panels on homes in Folsom, Calif.
RICH PEDRONCELL­I/AP 2020 California is considerin­g reforms that would reduce financial incentives for homeowners who install solar panels. Above, panels on homes in Folsom, Calif.

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