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.
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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.
