© Photo by Mel Melcon/Los Angeles Times via Getty Images California-based solar energy company Sunrun installs solar panels.The California Public Utilities Commission (CPUC)'s new solar proposal eliminates previously proposed monthly grid fees that could add hundreds of dollars to solar installation costs each year (via Reuters ).
The CPUC wants to cut solar incentives for investor-owned utilities and in December proposed charging $8 per kilowatt per month to connect new solar customers to the grid. As my colleague Justine Calma has noted, some industry groups oppose the plan, saying it would "end California's solar boom," resulting in the state having more rooftop solar panels than anywhere else in the world. United State.
In response, the CPUC removed the monthly network fee from its offer.
At the same time, CPUC also plans to reduce payments for network energy, which is called Net Energy Metering. That could reduce payments from $0.30 per kilowatt to $0.08, according to an analysis by clean energy business group the California Solar Energy and Storage Association (CALSSA), reducing the potential for installation costs to be recovered in less than 10 years.
Reuters noted that the new offer includes an additional $900 million in subsidies for batteries and solar power systems, mostly for low-income customers, and that CPUC previously said it wanted to encourage battery storage rather than sell excess capacity.
Residential solar providers like Sunrun, who can install solar panel systems and battery systems like Tesla Powerwalls, can take advantage of the new offerings as they work to create more energy storage systems. “Customers will not be penalized for generating domestic green energy and storing it (in batteries) to enable modern ways to support their lives and help fight climate change, which is an important step in the right direction,” said Mary Powell, CEO of Sunrun. This came in a press release to Reuters .
“Taken as is, the CPUC proposal would protect utility monopolies and increase their profits, making solar power less expensive and delaying the 100 percent clean energy goal,” said Bernadette Del Chiaro, CALSSA CEO Delegate. "We are calling on Governor Newsom and the CPUC to make additional changes to help more middle-class consumers and workers, as well as schools and farms, have access to clean, reliable, and affordable energy."
A vote on the proposal is scheduled for December 15, with April 15, 2023 as the target date for implementation if it is accepted.
