CPUC voted to send rooftop solar off a cliff

The California Public Utilities Commission (CPUC) unanimously voted on December 15th to make drastic changes to the state’s rooftop solar rules.

Key details

  • Most consumers who get solar after April 2023 will see an average 75% reduction in the credit they receive for sharing their extra energy with the grid – from an average of $.30/kWh to about $.08/kWh.
  • Churches, schools or businesses who go solar after April 2023 will see an even bigger reduction in the solar credit.
  • The proposed changes will affect new solar users starting April 2023.
  • Protections for existing solar users will remain in place with no changes (NEM1 or NEM2) for twenty years from the date their system turned on.
  • There is no solar tax in the CPUC’s final decision.

How this proposal will harm solar

  • When other states and localities made similar cuts to the solar credit, solar adoptions plummeted by half or more.
  • That’s because these deep cuts shrink the monthly savings from solar. That extends the length of time it takes to pay off a solar investment to longer than most people can afford.
  • The CPUC’s proposal will nearly double the length of time it takes for a solar investment to pay back.

Utilities will now be able to make a 4x profit off of their customers’ solar energy, even though the utility spent nothing to produce that energy.

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