In April, the Sacramento Municipal Utility District (SMUD) withdrew their Solar Tax proposal after over a thousand local solar users spoke out. People power won the day, but the sheer fact that SMUD thought a Solar Tax was a good idea underscores how we all must be alert to future proposals that would punish solar users for the “sin” of trying to lower their energy bill.
The SMUD Solar Tax would have made solar users pay $40-60 more per month…just for having solar
At issue was a proposal by the Sacramento Municipal Utility District (SMUD) to hit its solar customers with a new fee of between $40 and $60 a month on average. Solar-powered businesses, which often have much larger solar systems could have paid hundreds more each month.
What’s next, a tax on LED lightbulbs?
SMUD officials justified the charge by saying because solar users buy less electricity from SMUD, non-solar ratepayers end up unfairly paying the difference.
We disagreed, arguing that people have a right to buy less electricity from their utility without penalty. It would be the same as taxing people for using LED lightbulbs or turning down their A/C.
Solar saves everyone money, including non-solar users
In addition, SMUD ignored the many ways solar benefits all ratepayers.
Solar users speak out, utility officials listen
Fortunately, word got out quickly, and over Easter Weekend, over 1,200 solar users flooded SMUD officials’ inboxes with appeals to drop the solar fee proposal. Dozens of customers packed a SMUD hearing room to speak out against the fee.
Shortly after, SMUD officials announced they were withdrawing their proposal.
People power is the only way to overcome the monopoly
It bears repeating: over one thousand solar users spoke out over Easter weekend to stop their local utility from punishing solar. Some customers went above and beyond that, posting information on NextDoor, attending hearings, and even canvassing the solar homes in their neighborhood.
People power is awesome, and it works. Let’s stay alert!

