Gov. Newsom ignores the will of the people, vetoes bill that would have restored solar rights for schools and renters

August 30, 2024

For years, the utilities have tried and failed to block homeowners from making and using their own solar energy. We’ve stopped them every time. But last year, the utilities succeeded in blocking solar rights for schools, farmers, and many renters. This, despite overwhelming opposition from renters’ advocates, affordable housing organizations, school districts, farmers, and the general public.

Senator Becker authored SB 1374 to restore solar rights for renters and schools. Thanks to your efforts and a big coalition, the bill made it all the way through the Senate and the Assembly. But Governor Newsom sided with the monopoly utilities and vetoed the bill.

The CPUC decided to stop farms, schools, and many apartments from using their own rooftop solar to reduce their electricity bill

  • California’s nearly 2 million solar rooftops include multi-family homes, farms, and schools that have more than one electrical meter.
  • Like with single-family homes with just one meter, the solar energy from schools and apartments directly powers the property when the sun is shining, which should reduce the amount of electricity they buy from the utility.
  • But the CPUC approved a change in 2023 that blocks properties with two or more meters from directly using their rooftop solar energy.
  • The CPUC instead forced these solar consumers to buy all of their electricity from the utility, even if they have solar panels on their roof!

The CPUC effectively approved a blatant seizure of property

  • Yes, you read it correctly. The CPUC is letting the utilities seize control of the power generated by these rooftop solar systems and then sell that power back to their owner at full price. 
  • With respect to rooftop solar, there is no meaningful difference between properties with one meter (such as single-family homes) and properties with two meters (such as apartments, farms, schools, and many businesses). All should have the right to install solar panels and use that energy on their property instead of buying it from the utility.

The CPUC’s last-minute revision is about as cynical as it gets

  • The CPUC made a last-minute revision that allows renters to use rooftop solar energy in real-time, but still prohibits the property owner from using the rooftop solar energy for common areas. This includes hallway lighting, outdoor lighting, office equipment, elevators, and shared resources like pools, laundry, exercise facilities, and EV charging stations. Apartment owners typically use some of the solar power to reduce the cost of operating these common areas, which helps pay for the rest of the solar that goes to their renters.
  • In other words, the CPUC’s seeming “compromise” for apartments is actually a cynical poison pill. If it is not cost effective for apartment owners to install solar, then individual tenants won’t get that solar to begin with.
  • In addition, making it difficult for apartment complexes to power EV chargers with solar will result in fewer EV chargers getting installed for tenants. That conflicts with everything else state leaders say about promoting electric cars.

How did the CPUC justify their decision? Is there something different about the way rooftop solar works for properties with more than one meter?

  • In the case of a school with several buildings, the solar energy flows into the local grid (“in front of the meter”) for a moment before traveling back to other buildings on the school grounds. This is a technical feature related to how multi-meter properties work with rooftop solar.
  • The CPUC/utilities say that because the solar electrons touch the grid for a brief moment, those electrons are no longer the property of the solar user.
  • But that is nonsense. After briefly touching the grid, those electrons flow back and power the property as intended.
  • The CPUC/utility “argument” is a really just a fig leaf to justify another abuse of power by the monopoly.

You helped stop utilities from blocking solar for homeowners, so they went after renters, farmers, and schools

  • You might be asking, “But didn’t the CPUC also gut rooftop solar for homeowners?” Not quite. Thanks to your efforts, the CPUC did not alter homeowners’ right to make solar energy to power your home “behind the meter.” The CPUC instead slashed the credit that homeowners get for sharing their extra solar energy with the grid. That’s not good, but the basic solar right for homeowners was preserved.
  • Now that the CPUC took away the fundamental solar right for renters, we expect them to try again for homeowners at some point.

Renters, affordable housing developers, farmers, and schools, and even the state Legislature fought back. Gov. Newsom ignored the will of the people and sided with the monopoly utilities instead.

  • Hundreds of organizations and businesses representing renters, farmers, schools, and apartment owners sent letters, made phone calls, and met with decision-makers to stop this from happening. Many of them pointed out that rooftop solar is an important way to reduce California’s high cost of living for renters and others, and that this decision makes the problem worse. The media picked up the story, too (see below).
  • In response, State Senator Josh Becker introduced a bill, SB 1374, to restore solar rights for renters, schools, and farms.
  • SB 1374 passed the State Senate and Assembly by overwhelming margins, and several Assemblymembers spoke out against the utility misinformation about rooftop solar.
  • Despite that, Gov. Newsom vetoed the bill. His veto sends a chilling message to all Californians that under his watch, they are expected to pay the monopoly utilities whether or not they use their electricity.
  • The monopoly utilities’ lies about rooftop solar are at the heart of Gov. Newsom’s veto, the big Utility Tax, and the series of reckless CPUC decisions that have sent rooftop solar off a cliff. The utilities are blaming rooftop solar users for high electricity rates, trying to distract everyone from the real reason rates are so high: the utilities’ out-of-control spending. It’s time to tackle those lies head-on:

Take action to stop utility lies about rooftop solar!

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