California solar users may have to sell energy at a lower price and pay higher rates to purchase it again.
A Proposed Decision That Could Impact Solar Power Users
A proposed decision announced on Aug. 2 has the potential to affect apartment buildings, schools, and farms that rely on solar power. The decision aims to change tariff rules for properties with multiple meters.
If confirmed with a vote by the commission scheduled for Sept. 21, properties with multiple meters would be required to sell energy to utility companies at discounted rates and then repurchase the power at retail prices.
Solar panels are connected in a series, forming a solar array. Some systems also utilize battery storage to provide power when solar energy is not being produced.
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Electric meters attached to solar systems measure usage in a similar manner to residential electric meters, allowing utility companies to monitor power production and consumption.
This proposal is strongly opposed by numerous elected officials, solar power associations, schools, farms, and various organizations representing different businesses and ideologies. They argue that the only beneficiaries of this change are public utility companies, who stand to profit millions of dollars annually.
A resolution passed unanimously by the Oakland City Council in July criticized the decision, stating that it “violates the principles of equity, sustainability, and energy security.” The council called it an “absurd and unfair proposal” that treats customers with one electric meter differently than those with multiple meters.
The council urged the governor and utilities commission to reject the proposal and any other measures that hinder the ability of multifamily tenants and schools to benefit from local, renewable, and affordable energy through rooftop solar and battery storage.
The proposed rule changes relate to a 2008 decision that established affordable solar power for multi-family housing. The proposal would eliminate reduced special rates offered to properties with multiple meters attached to one solar system.
Currently, around 37,000 renters in California benefit from solar power in multifamily units, and this number could increase to 200,000 by 2030, according to the California Public Utility Commission.
Schools and farms often have multiple meters, and the proposed rules would put them at a disadvantage, according to experts.
“In each of these cases, it is impractical for the customer to install a separate solar array and battery for each meter,” officials representing municipalities across the state wrote in a letter to the utility commission. “The solar tariffs should continue to allow customers to install solar and storage systems for the energy needs of the property as a whole.”
Opponents argue that this proposal weakens the solar power industry at a time when businesses are already struggling due to changes in residential solar power tariffs and higher interest rates that make loans for new installations less attractive.
Under the current regulations, homeowners who installed solar panels on their single-family homes before the rate changes are exempt from the new policies. However, this exemption is lost if additional panels are added to their array.
Many homeowners find themselves in a predicament, as they desire to expand their solar systems without losing the tariff protection they had under previous iterations of the policy, which guaranteed 20 years of protection.
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