California to vote on hotly debated change in rooftop solar policy

Dec 15 (Reuters) – California utility regulators on Thursday will vote on a proposal to scale back the speed at which households with rooftop photo voltaic panels are credited for exporting surplus energy to the grid, a step photo voltaic firms warn might gradual installations however utilities argue can be fairer for low-income ratepayers.

For many years, Californians with rooftop panels have been credited for extra energy at or close to the total retail electrical energy fee. Supporters say this incentive has been essential to the state’s efforts to struggle local weather change, however critics contend it has unfairly favored solely these rich sufficient to afford photo voltaic.

The proposal, unveiled final month by the California Public Utilities Fee, would change the so-called “internet metering” coverage by compensating photo voltaic house owners for surplus energy at a decrease fee decided by the associated fee the utility would have spent to purchase clear energy elsewhere.

It might additionally supply new credit to methods paired with batteries that will enable properties to maintain extra energy in reserve when demand is low, then feed it into the grid after darkish when photo voltaic vitality assets cease producing however demand is excessive. That may assist stabilize California’s grid, sustaining reliability throughout its formidable transition away from fossil fuels.

The vote by the five-member fee is being watched nationwide as a result of insurance policies made in California usually function a template for different states in search of to exchange fossil fuels with renewable vitality.

Utilities and ratepayer advocates assist the proposal, arguing the prevailing coverage pushes many of the value burden of sustaining the grid onto the shoulders of consumers with out panels, who are typically much less prosperous. Photo voltaic firms counter that the modifications would gradual new installations and threaten California’s clear vitality and local weather change objectives.

“We have outgrown this coverage and it’s not sustainable,” Matt Baker, director of the Public Advocates Workplace, an impartial ratepayer advocate on the CPUC that helps the proposed reforms.

A utility-backed group, Reasonably priced Clear Vitality For All, has stated the modifications don’t go far sufficient to alleviate the associated fee burden on lower-income households.

California’s three investor-owned utilities are Pacific Fuel & Electrical (PCG.N), Southern California Edison (EIX.N) and San Diego Fuel & Electrical (SRE.N).

The longstanding coverage has propelled development for nationwide residential installers like Sunrun Inc (RUN.O) and SunPower Corp (SPWR.O) in addition to a whole bunch of native firms, and made California a nationwide chief in photo voltaic installations.

The PUC has stated photo voltaic would nonetheless make financial sense after the reforms. Prospects putting in photo voltaic with a battery, for instance, would save about $136 a month below the plan, in contrast with $100 a month with simply photo voltaic.

Reporting by Nichola Groom; Enhancing by David Gregorio

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