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California cuts solar incentives for homeowners


Huge savings Solar contractors install LG Electronics solar panels at a home in Hayward, California, USA, on Tuesday, February 8, 2022.

David Paul Morris | Bloomberg | beautiful pictures

The California Public Utilities Commission on Thursday approved a proposal that would reduce the compensation offered to households for the excess electricity their rooftop solar panels contribute to the grid. electricity.

Convenience and consumer groups have argued that incentive payments unfairly favor wealthier consumers and harm poor and low-income households. But solar companies and renewable energy advocates have said the reduction in compensation would slow solar installations and hinder the state’s goals in addressing climate change. climate change.

The proposal, which California’s utility regulators announced last month, would change net metering policy by paying solar owners for more energy at a lower rate, determined by the cost the utility will have to pay to buy clean energy from a alternative source. The solar industry says the plan will cut the average payment rate for customers by 75%.

Today’s unanimous vote by the five-member committee was watched nationally, as California is widely seen as a leader in renewable energy construction. The impact of today’s decision will likely extend beyond the state and have implications for the solar industry across the country, especially for companies in the residential solar sector such as Sunrun, Solar, novaand Tesla.

More than 1.5 million homes, businesses and other utility customers in California have rooftop solar panels. The Utilities Commission estimates that these installations can produce a total of 12 gigawatts of electricity.

The commission said the proposal would not affect existing rooftop solar customers and would maintain their current compensation, while encouraging consumers to install batteries alongside their solar panels.

Affordable Clean Energy for All, a nonprofit organization funded by California’s utility companies, has argued that the rooftop solar program is outdated and utilities must move. subsidized costs, generating higher bills for millions of non-solar customers, including those least able to pay their electricity costs.

However, solar companies have argued that the current network metering system is needed to motivate people to choose rooftop solar.

Changes to the state’s solar incentive program could cut California’s solar market in half by 2024, according to a report released earlier this year from the research firm. Wood Mackenzie energy.

“This erroneous decision, which underestimates the many benefits of solar energy for all Californians, will dim the light,” said Laura Deehan, California state environment director, after the vote. for the development of solar energy in the Golden State”.

Roger Lin, an attorney at the Center for Biodiversity’s energy justice program, said in a statement that the committee “takes a step back by widening the gap between people who can afford to buy solar energy.” heaven and those who cannot.”

“It is an affront to the low-income communities who have been affected by the first and worst climate crisis, and we will do whatever we can to convince the committee to fix it,” said Lin. correct the profound flaws in his proposal”.

California, which is grappling with wildfires and drought caused by climate change, has a goal of transitioning to 100% renewable energy by 2045.

Solar stocks soar after California cuts subsidies

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