California utility regulators have approved major changes to the state's booming rooftop solar industry
FILE - Gen Nashimoto, of Luminalt, installs solar panels in Hayward, Calif., on April 29, 2020. California air regulators are set to approve an ambitious plan for the state to achieve carbon neutrality by 2045. Doing so will require a rapid transition away from oil and gas and toward renewable energy to power everything from cars to buildings. SACRAMENTO, Calif.
The changes approved by the California Public Utilities Commission lessens the overall financial incentive for selling excess power back to utilities. It also changes electric rates to try to encourage people to build home storage systems alongside their panels, so they can tap that stored power at night instead of relying on the overall energy grid. Though solar provides a lot of California’s power during the day, fossil fuels largely take over in the evening and during the night.
The fight over changes to the program — directed by the state Legislature — has been controversial from the start, pitting the state’s three major utilities against the solar industry, with many environmental groups caught somewhere in between. A utility-backed coalition called Affordable Clean Energy for All estimates that $4 billion in costs are shifted from solar to non-solar customers. The solar industry disputes that number, saying it doesn’t account for the benefits rooftop solar provides for everyone, like making the grid more resilient and reducing the need for utilities to build more costly legacy power equipment.
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