Solar power reportedly costs Californians billions, supporters say it saves money

Nov 18

Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Emma Stoltzfus (Video Editor)

California’s rooftop solar industry is the subject of a debate over its financial impact on utility customers. While critics claim this renewable energy source is adding billions in costs, supporters argue it instead saves all ratepayers money.

A report released in August by a California state agency estimated that this trend could add $8.5 billion in costs for customers of the state’s three largest utilities, a figure expected to grow in the coming years. The research suggests that when some customers offset their bills by selling solar power back to the grid, utilities are forced to compensate by requesting regulators to allow them to charge all residents higher rates to maintain grid operations.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

Calculations like these have influenced recent policy decisions, including the state’s reduction in rooftop solar incentives and Gov. Gavin Newsom’s, D, veto of a bill that would have restored some of those benefits, citing concerns over rising electric prices.

However, a new analysis commissioned by a solar trade group is disputing those findings. Proponents of rooftop solar argue that the state agency’s report used flawed calculations, failing to account for economic factors that offset the supposed costs, and, according to their data, rooftop solar has saved California ratepayers more than $2 billion.

Tags: California, Electricity, Energy, Gavin Newsom, greenhouse gas emissions, Solar panels

[Jack Aylmer]

SOLAR POWER CRITICS IN CALIFORNIA CLAIM THIS TYPE OF RENEWABLE ENERGY IS COSTING RESIDENTS BILLIONS IN ADDED FEES-

WHILE PROPONENTS ARGUE ITS DOING THE EXACT OPPOSITE.

BACK IN AUGUST, A STATE AGENCY REPORT DETAILED CONCERNS OF RISING UTILITY PRICES AS A RESULT OF CALIFORNIANS INSTALLING ROOFTOP SOLAR PANELS.

THEIR RESEARCH FOUND THAT THIS TREND COULD RESULT IN 8.5 BILLION DOLLARS IN EXTRA COSTS FOR CUSTOMERS OF THE STATE’S THREE MAJOR UTILITIES.

AND THEY PREDICT THAT FIGURE WILL CONTINUE TO GROW OVER THE COMING YEARS.

ESSENTIALLY IT WORKS LIKE THIS-

IF SOME CUSTOMERS PAY LESS BECAUSE THEY OFFSET THEIR BILLS BY SELLING SOLAR BACK TO THE GRID-

UTILITIES WILL ASK REGULATORS FOR PERMISSION TO RAISE RATES ON CUSTOMERS AT LARGE TO COME UP WITH THE FUNDS THEY NEED TO KEEP THE GRID RUNNING.

POLICYMAKERS HAVE SINCE CITED THESE CALCULATIONS AS PART OF WHY THE STATE SLASHED THE INCENTIVES GIVEN OUT FOR ROOFTOP SOLAR INSTALLATIONS.

WITH EVEN GOVERNOR GAVIN NEWSOM RECENTLY VETOING A BILL THAT WOULD HAVE RESTORED SOME OF THAT LOST VALUE BECAUSE HE BELIEVED SIGNING THE LEGISLATION WOULD HAVE INCREASED ELECTRIC PRICES.

BUT A NEW ANALYSIS COMMISSIONED BY A SOLAR TRADE GROUP IS REFUTING THAT DATA.

THEY SAY THAT INSTEAD OF COSTING STATE RATEPAYERS BILLIONS, ROOFTOP SOLAR IS ACTUALLY SAVING THEM OVER TWO BILLION DOLLARS.

THOSE RENEWABLE ENERGY SUPPORTERS POINT TO FLAWED MATH AS THE REASON BEHIND THE DISPARITY IN FIGURES.

CLAIMING THE STATE AGENCY’S REPORT FAILED TO ACCOUNT FOR VARIOUS ECONOMIC FACTORS RELATED TO ROOFTOP SOLAR THAT NOT ONLY MAKE UP FOR THE SUPPOSED COST INCREASE-

BUT ALSO BRING NET FINANCIAL SAVINGS TO ALL GRID-USING MEMBERS OF THE PUBLIC.

TO GET MORE STORIES ABOUT DEBATES SURROUNDING RENEWABLE ENERGY, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYMER.