But as solar panels proliferated, criticism about
the program grew. Utility companies 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 at nighttime — 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, though the solar
industry disputes that number.
CPUC Commissioner Martha Guzman Aceves said
the reforms announced are aimed at creating
fairness while ensuring the financial benefits
are still strong enough to encourage people
to go solar. The commission’s proposal would
lower the amount of money residential solar
customers make by selling their excess energy
back to the power companies and add a “grid
participation charge” of about $40 per month
for solar households.
The changes would apply to new solar customers.
People who already have panels on their homes
wouldn’t operate under the new system until
they’ve had their panels for 15 years.
But state regulators also want to encourage
people with solar panels to install storage systems.
It costs about $20,000 to $25,000 for people to put