Hello dear readers! Being your dedicated solar enthusiast and expert, I feel an obligation to share an update about the happenings in the solar industry. Today we’re going to discuss a hot topic that has caused a disruption in California: the introduction of a new electricity rate rule.
California’s solar customers, including many that invested in solar panels for their homes, woke up to a shocking development. The California Public Utilities Commission (CPUC) voted to authorize a monthly average charge of $24 on residential bills—an increase that could make your solar panels a little less lucrative.
I know many of you, especially those running on solar array for home, might be thinking, “Why do I need to pay extra if I hardly draw power from the grid?” This is a reasonable question and one that many solar companies and solar advocates are asking.
Most of us, including me, were attracted to solar because it was a greener and more affordable alternative to traditional utilities. However, this new rule now poses a question on the very essence of solar—I mean, that’s an additional $24, regardless of whether you use one unit of electricity or a thousand. Economists are sounding alarm bells, warning that such charges can disproportionately impact customers who have low electric bills due to their energy-efficient measures such as using solar panels for their homes.
Another worrying aspect of this newly introduced rule is the absence of a ceiling on the fixed charge rates. Initially, attempts were made by environmental and consumer advocates to cap the fixed charge at a modest $10 per month, but their efforts were thwarted. It’s unsettling to think about what would happen if the utility companies had their way—earlier proposals had hinted at a fixed charge as high as $128 per month!
I see this as a move that could potentially hurt the economics of rooftop solar. With this fixed charge in effect, even if a customer’s rooftop solar array met 100% of their electricity requirements for the whole year, they’d still have to shell out the extra money. Such decisions are hampering California’s progress towards its clean energy goals!
Another concerning factor is the electricity affordability crisis California is currently grappling with. Over 20% of customers are behind on their utility bills, and this percentage rises among low-income citizens. Could a further increase make the situation even worse?
The silver lining, if any, is that the volumetric rates (rates for electricity generation) will be lowered by about 5 to 7 cents per kilowatt-hour, offering some relief for high-usage customers. However, recent rate increases and predictions of skyrocketing rates in the future potentially negate these savings.
This fixed rate charge is projected to appear by late 2025 for SCE and SDG&E customers, with PG&E customers seeing these changes by early 2026.
As an individual deeply invested in solar, I believe this development could be a potential setback for the solar community in California and those of us trying to champion cleaner, greener lifestyles. But remember, my fellow solar enthusiasts, the sun is still shining and our hope in solar is not lost!
Stay tuned for more updates and let’s continue our journey towards a more sustainable future. Don’t hesitate to drop your thoughts or questions in the comment section, I’d love to hear your take on this issue.
Original Articlehttps://pv-magazine-usa.com/2024/05/09/california-approves-uncapped-fixed-charges-on-electricity-bills/
