California Public Utilities Commission subsidy cuts for new Net Energy Metering customers don't go as far as utilities wanted, but too far for solar industry
California’s NEM rules had not been updated since 2016. Solar advocates said the state needs to continue offering strong subsidies to encourage the transition to clean energy. Critics said the existing rules unfairly burdens non-solar customers — especially lower-income residents — with the rising costs of maintaining the power grid.
, said in a statement. “It is a dark day in California when the utility regulators try to block out the sun.”“This final decision was a missed opportunity that will prolong the harm to low-income Californians and renters for decades to come,” said Kathy Fairbanks, spokesperson forOne of the key provisions alters the way rooftop solar owners are compensated for the excess electricity their systems send back to the grid.
Since solar installations can run into the tens of thousands of dollars, the group argues that the lower compensation will extend the payback period to such a degree that customers will have less incentive to make an investment in rooftop solar. Del Chiaro called the new rules “a loser for California on many levels.”, the independent arm of the CPUC that is tasked with keeping ratepayer costs low, says the new rules bump up compensation rates during the evening hours.
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