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Existing California solar customers may get blindsided with net metering cuts
(pv-magazine-usa.com)
this post was submitted on 27 Aug 2024
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I mean, the existing scheme is economically-problematic, because it means that non-solar-generation users are subsidizing solar-generation-users grid connections.
The utilities have two separate set of costs, one from providing the grid connection, and the other from providing power over it.
Traditionally, because the two were linked for practical purposes, utilities just generated their revenue from charging a fee based on electricity use.
But they became decoupled when home solar power generation became more-common. That caused people who were doing solar power generation to not just not pay for electricity being provided -- which is fine, they're providing that -- but also to not pay the costs of keeping the grid available, which is not. Under the traditional billing system, those grid maintenance costs were transferred to people -- who statistically are poorer, another point of contention -- weren't doing home solar power generation.
Having a grid connection provides value to solar generation users. It means reliability, and ability to scale up. It costs something to provide that. And the folks who are incurring the cost and benefiting from it should pay those costs.
And yeah, I agree that it makes solar less-advantageous, and some rooftop solar users got sold a bill of goods by rooftop solar installers who promised that their rooftop solar would make more economic sense than it did, because they could exploit that billing inefficiency. But the point is, it was a bad policy, and rooftop solar installers had no ability to guarantee that it would continue.
If you've got rooftop solar, you can still avoid paying for the electricity that you're generating rather than pulling from the grid. You just have to pay your share of the grid maintenance cost. Or, if you really don't need that connectivity and you legitimately feel that you're better off off-grid -- which I suspect is probably not the case for most people -- you can just cut off from the grid. The only thing you can't do is have grid access and have non-solar-rooftop generation customers subsidize that grid access.
You’ve articulated well a lot of good points, but you’re missing a few key considerations. One elephant in the room is that the Investor Owned Utilities (which cover the vast majority of accounts in California) are abusing their monopoly powers as much as possible (including regulatory capture). That is sadly inextricably linked with the resentment felt by their solar customers, even as it is also felt by all of their non-solar customers.
You’re talking about the kind of tradeoffs that make sense in an ideal system, pricing things according to what they actually cost to provide. But the IOUs price things at “how much can we get the CPUC to allow us to charge?” And they love to stoke class warfare politically when it suits their business purposes. It’s just one more area where the actual problem is the billionaires (or just call it capitalism) against the 99% but they keep the water too muddy for most people to see it.
I believe it’s also still generally either illegal or at least infeasible to disconnect from the grid entirely in most of urban and suburban California, because it’s tied to occupancy permitting. I think the best hope of ending the madness does lie in that direction though. Solar customers tend to be much wealthier than non solar customers, which in aggregate means many of them will have the means to go full battery off grid as the pricing disparity continues to grow. This loss of legally-mandated captive market is the only chance to force monopolies to behave better.