SACRAMENTO, Calif . - California regulators on Thursday proposed changes to the residential solar power market to encourage more home battery systems, making the power grid less dependent on fossil fuels at night, especially during heat waves. .
This is the California Public Utilities Commission's second attempt to renew the state's incentive program for indoor solar systems. Last December, the commission proposed new tariffs for solar users and reduced subsidies for rooftop panels, which utilities have demanded, but solar Cubans have warned would hurt the growing industry and hinder the country's transition to renewable energy.
Solar panels have been installed on 1.5 million homes in California, creating the nation's largest solar home market. The state has set ambitious goals to switch from fossil fuels to renewable energy sources like solar and wind in homes, businesses and cars.
Under existing regulations, solar users can resell surplus energy they don't use on credit to their power company.
California's three major utilities: Pacific Gas & Electric, Southern California, Edison and San Diego Gas And he says the electricity bill is so high that solar customers aren't paying their fair share of the total cost of the electricity grid they rely on when their panels aren't generating electricity. The electricity tariff includes other costs such as power transmission and forest fire protection works.
The utility-backed coalition, Affordable Clean Energy for All, is shifting nearly $4 billion from solar to non-solar customers. When solar customers pay much lower bills because of the credit, they pay less on the grid. The solar industry says the numbers don't take into account the contribution to grid reliability and other benefits of rooftop solar.
ALJ Kelly Hyams, who wrote the commission's opinion, welcomed the changes, noting that the current system is harmful to non-oil customers, has a disproportionate negative impact on low-income utility customers, and is "unprofitable."
The new proposal would reduce the amount of money people get for selling their extra energy. But this does not include the fuel tax that companies demand. This creates a new financial incentive for people to install home storage systems to collect more solar energy during the day. It also adjusts electricity tariffs to encourage people to send stored energy to the grid in the afternoon and evening, when the grid typically switches from renewables to fossil fuels.
"This change will help meet California's climate goals and improve reliability and affordability for all income levels," Himes wrote.
The five-member Public Service Commission has until mid-December to discuss the proposal. If approved, it would be in effect until at least April 2023.
People who already have solar panels and storage systems will not see a change in their credit score; The package only applies to new customers. Although he says the solar industry is far from being a problem, it puts people's best bet over the next five years to encourage more homeowners to get into the solar market now.
The Public Utilities Commission calculated that the average customer with solar panels would save $100 a month, while those with rooftop solar panels and a storage system would save $136. These savings cover the cost of systems with or without storage for up to nine years. . The proposal estimates that customers with storage will recoup their costs in just five to seven years.
According to Bernadette Del Chiaro, CEO of California Solar, today it takes five to seven years for an invoice credit to cover the cost of installing solar panels, much less for storage systems. & Warehouse Association. The average cost of solar and storage systems is $26,000, including a new federal tax credit that covers 30 percent of the cost, he said.
About 150,000 people add solar panels every year, with 16% to 20% of installations adding batteries.
Recent efforts to maintain a balance between utilities and the solar industry have drawn more criticism than praise. Utility-backed coalition "fails to make significant improvements needed" to get fair share of costs: California Solar & Storage Association said the proposal would be "very damaging" to the industry because it would make home solar panels cheaper.
"Under this proposal, it's unfortunate that low-income households and all non-diesel customers continue to pay a hidden tax on their utility bills to subsidize much of California's affluent sunshine." - Utility-supported Accessible Clean Energy for All spokeswoman Kathy Fairbanks said in a statement.
He challenged the commission for not ending the surcharges it pays solar customers at a time when more federal money is pouring into solar panels and other clean energy projects. According to the US Department of Energy, the federal spending bill signed by President Joe Biden in August includes a 30% federal tax credit worth $7,500 for solar installations over the next decade.
While Del Chiaro defends batteries, he doubts lowering solar fees will encourage enough people to add batteries.
"A huge overnight shift means that every consumer who turns to solar today will add a battery at the snap of a finger," he said.
The changes, if approved, would apply only to Pacific Gas customers. & Electric, Southern California, Edison and San Diego Gas and electricity.
