California regulators put controversial solar energy plan on hold as changes loom
It’s official: California energy regulators are retooling their controversial proposal to slash the subsidy paid to homeowners who generate excess electricity from their rooftop solar panels.
In a short email Thursday to solar advocates, utility executives and other stakeholders, the California Public Utilities Commission said it is delaying a vote to give the agency’s new leader time to “analyze the record and consider revisions to the proposed decision.”
The proposal was released by agency staff in mid-December and was scheduled for a vote by the five-member commission Jan. 27. Now that’s on hold “until further notice,” the email said.
The original plan triggered outrage from the solar industry and became a major political fight, with TV ads and the prospect of a ballot initiative to nullify the commission’s plan. Gov. Gavin Newsom signaled last month that the proposal was being massaged, telling reporters that “we have work to do” on the solar proposal.
Roughly 1.3 million homeowners and business owners have rooftop solar panels, making California the leader in production of solar energy. A major factor in solar’s growth: PG&E Corp. and the other large regulated utilities are required to pay hefty credits to customers who ship their excess power into the grid.
Utilities and some consumer advocates say the rate constitutes an overly-generous subsidy, worth a combined $3 billion a year, for the comparatively well-to-do customers who constitute the majority of solar owners.
The commission’s original plan would slash the compensation and, for the first time, charge these customers a monthly hook-up fee depending on the generating capacity of their solar panels. Most customers would pay about $40 to $50 a month to their utilities.
Solar advocates complained that the proposal would cripple the industry’s growth — and hamper the state’s efforts to fight climate change and build an all-green electricity grid. State law says the grid must be 100% renewable by 2045.
“We are glad to hear that the commission is taking their time to get this proposal right,” said Laura Deehan, state director at Environment California. “I’ve walked alongside thousands of concerned citizens who want our state to catch more solar energy from our rooftops. Governor Newsom heard us, and made clear that changes had to be made to the proposal. Now, the commission needs to make sure that California continues its solar leadership.”
The commission’s plan affects PG&E, Southern California Edison and San Diego Gas & Electric customers. The board of directors of SMUD, the Sacramento Municipal Utility District, already voted last fall to cut the credit paid to its 37,000 customers with rooftop solar.
This story was originally published February 4, 2022 at 10:30 AM with the headline "California regulators put controversial solar energy plan on hold as changes loom."