California Governor Bans Schools and Farms from Using Self-Produced Solar Energy – pv International magazine

October 2, 2024 Ryan Kennedy

From pv USA magazine

California Governor Gavin Newsom has once again ruled in favor of three major investor-owned utilities and against consumers supporting solar power in his state, rejecting Senate Bill 1374. The bill aimed to repeal regulations that make it economically difficult for schools and farms to install solar energy.

Over the past few years, California has gone from being the crown of the U.S. rooftop solar market to a state with some of the most aggressively anti-consumer, pro-investor utility laws in the country.

California has made numerous cuts to solar energy incentives and programs in its state, including: valuation and lending reductions exported solar energy production, limits its emerging production solar community program and imposition a monthly fixed fee which undermines the potential savings offered by rooftop photovoltaic installations. According to the California Solar and Storage Association (CALSSA), many of the nation’s installers went bankrupt as a result of these actions, and more than 17,000 solar industry jobs were lost.

“California should be in a golden age of solar energy, but our state’s regulators – backed by powerful utilities fearful of solar competition – are determined to stop California’s progress on clean energy,” said Bernadette Del Chiaro, executive director of CALSSA .

Currently, Newsom has met the demands of Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric in denial Senate Bill 1374bill sponsored by Senator Josh Becker.

“This bill is simply a matter of fairness. “Multimeter customers should be treated the same as everyone else – they don’t have to sell their energy to the utility at low prices and immediately buy it back at much higher retail prices,” Becker said.

Senate Bill 1374 sought to undo: ruling of August 2023 which established that properties with multiple electricity meters, such as schools, farms and multi-family homes, cannot use electricity generated by photovoltaic panels. Even if these entities fully own the system, they are forced to sell energy to the grid at a low rate and then buy it back at a much higher rate.

The billing structure means that schools, farmers and multifamily homes, which pay some of the highest electricity rates in the world, are generally barred from reaping the benefits of their investments. They must sell the electricity generated on their roof to the grid at a wholesale price and then buy it back at a retail price that is a multiple of the price they paid for it. This is a market condition that Gavin Newsom voted to maintain, despite strong support from the Legislature to restore a fairer market.

“Public schools have one general fund where everything comes from: teacher salaries, textbooks, mental health counselors, utility bills – it all comes from the same bucket,” said Sam Davis, president of the Oakland Unified School District board. “In previous years, we have used solar energy to offset rising costs and invest savings in programs that improve educational equity. Restoring and protecting these incentives is critical to ensuring all students receive the education they need to thrive.”

Moreover, local zoning regulations and permitting requirements may make it difficult, in some zones, for ratepayers to sever ties with their electricity supplier and completely disconnect from the grid. Customers are basically enslaved to the “sell low, buy high” system run by energy companies.

While California has historically led the rooftop solar market, supporters say there is still work to be done, calling Newsom’s refusal “shortsighted.” California currently uses approx 10% of the technical photovoltaic potential on the roof.

Utilities justify cuts to rooftop solar programs by arguing that customers who don’t use solar power subsidize those who do. Utilities argued that the bill would “likely result in grid modernization that would result in high costs for all but benefit only a few customers.” However, analysis of the California Public Utilities Commission (CPUC) determined that nonresidential solar programs resulted in no change in costs.

“We are disappointed in Governor Newsom’s decision to put the brakes on this popular, proven source of clean energy, especially since cuts to solar incentive programs over the past two years have made the future of rooftop solar panels in California so uncertain,” said Steven King, Environment California .