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Power

California Regulators Propose Cutting Compensation For Rooftop Solar (nytimes.com) 178

An anonymous reader quotes a report from the New York Times: For a second time in less than a year, regulators in California moved on Thursday to roll back the compensation that homeowners receive from utilities for the excess electricity their rooftop solar panels send to the electric grid -- payments that power companies and some consumer groups have argued hurt poor and low-income households. The new proposal from the California Public Utilities Commission would cut the benefit for almost all new rooftop solar customers by about 75 percent starting in April. Under current rules, households that send excess power to the grid receive credits on their utility bills that are equivalent to retail electricity rates. The system of credits is known as net energy metering. The measure, which will be subject to public comment before the commission's five members vote on it, would also limit solar systems to 150 percent of a building's electricity load.

Regulators in other states are closely watching how California changes its net metering program. Utilities and solar energy companies have been fighting over energy credits in numerous states. Billions of dollars in investment and revenue are potentially at stake. More generous credits typically encourage people to buy solar panels but can cut into the profits of utilities. California leads the nation by far in the use of rooftop solar, with about 1.5 million such installations. The utilities commission estimates that those systems have the collective capacity to generate 12 gigawatts of electricity, or the equivalent of 12 nuclear power plants.

In a statement, the commission said the new proposal would make net metering more equitable. Average residential customers of Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric who install solar panels would save $100 a month on their electricity bill, and average residential customers installing solar paired with battery storage would save at least $136 a month, the commission stated. As a result of those savings, it said, the average household that installs a new solar or solar and battery system would be able to fully pay off the system in nine years or less. Compensation would not change for homeowners who already had rooftop solar panels, for at least 20 years from when their system was installed.
"As rooftop solar systems have spread over the last decade, the utility industry has criticized use of the technology and called net metering an unjust subsidy," adds the report. "Utilities argue that rooftop solar homes that greatly reduce or zero out their monthly electric bills are effectively forcing households without panels to bear more of the cost of maintaining the electric grid. But the solar industry has argued that net metering is needed to encourage use of rooftop solar and reduce the emissions responsible for climate change."
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California Regulators Propose Cutting Compensation For Rooftop Solar

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  • Whores, all (Score:5, Insightful)

    by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Friday November 11, 2022 @09:08AM (#63043139) Homepage Journal

    One of the biggest reasons I'm contemplating leaving California is the way the state full throats PG&E, well-known murderers for profit.

    PG&E wants this, nobody else does. PG&E wants because they only really profit from building new generation projects, and residential solar competes with that. The regulators and policy makers are obviously getting kickbacks from PG&E. There's no other reason why they would kneecap carbon reduction like this.

    • by rsilvergun ( 571051 ) on Friday November 11, 2022 @10:00AM (#63043245)
      is an elected body. This is what happens when you don't pay attention to local races.

      I spend 30 minutes googling local candidates and their positions every other year. It sucks, because they try to hide their positions so as to not put anybody off. Even the good ones.

      I don't blame people for not realizing how important it is to vote in these elections, or to research the candidates, I blame schools who teach kids government is a game instead of a life or death choice with real outcomes on their daily quality of life.
      • by grimsnaggle ( 1320777 ) on Friday November 11, 2022 @12:14PM (#63043587)

        The CPUC is appointed by the governor, not elected. Gavin Newsom appointed 3 out of 5 of the current commissioners.

        https://en.wikipedia.org/wiki/... [wikipedia.org]

    • Hit Piece (Score:4, Insightful)

      by ranton ( 36917 ) on Friday November 11, 2022 @10:14AM (#63043261)

      This article has many of the signs of a hit piece. They make broad claims like "some consumer groups have argued it hurts low-income households" without stating which consumer groups feel that way. And no effort is given to showcase how it hurts low-income households. If households are being paid more than their energy is worth, thus putting that burden on homes without solar, then say so. Any reader must assume one of two things after reading the article: homes with excess solar are being paid at least 75% more than their energy is worth to the grid (based on the reduction to payments mentioned in the article), or industry lobbyists are trying to increase their profits by reducing the use of renewable energy.

      • Re: (Score:2, Insightful)

        The truth is that net metering forces the utility company to pay full retail price for residential rooftop solar electricity, whether they need it or not, while they pay other electricity suppliers wholesale prices.

        The difference between wholesale and retail (and the customer connection fee, which for me, not in California, includes a fixed and a usage-based component) pays for the utility maintaining the distribution network. Net Metering is not a sustainable long-term policy; decision-makers chose it as

    • by fermion ( 181285 )
      It is useful to remember that Enron did not screw over the California ratepayers, they only took advantage of the greed of the regulators and executives. In Texas it was well known these guys were frauds. It is why the accounting firm began shredding documents, leading to their demise as well.

      For California, unlike Texas, onshore wind is not an easy fix. High density solar farms are not either. Their near term solution will be maximizing the number of residences with solar. And acknowledge the gravy train

    • I'm a bit torn about that. The value of electricity depends very much on the time you deliver it whilst the consumer's tariff is designed to cover even using electricity at the highest peaks of the day. Paying that much for electricity, independent of when it's delivered, even at moments of negative energy pricing seems over the top. OTOH, the California grid is clearly not doing as much as it should to even out prices. There was a discussion here recently that the links from California to other states are

      • I'm a bit torn about that. The value of electricity depends very much on the time you deliver it whilst the consumer's tariff is designed to cover even using electricity at the highest peaks of the day.

        PG&E forced us all to get smart meters whether we wanted them or not on the basis that they would permit time of use metering, so the hardware is actually present everywhere to do time of use net metering.

    • > PG&E wants this, nobody else does. I want this, and I am not related to PG&E. Paying solar customers at full residential rates helps the residential customers by over-paying them forever, but provides no incentive for the utility. This is an unsustainable arrangement. Also, utilities are typically not set up for residential customers to contribute to the grid. The utility should upgrade their equipment for zero cost? Why would the utility pay the full residential rate, 2x to 4x their cost for
  • by burtosis ( 1124179 ) on Friday November 11, 2022 @09:12AM (#63043145)
    Due mostly to massive tariffs, US solar is the most expensive in the world, 50% more than almost anywhere else and several times the installed $/watt cost of other countries like Australia. It’s crippled home adoption and commercial installs as the return on investment takes decades instead of years. The global supply chain issues have only increased prices further slowing adoption. But with the supply chain issues starting to let up a bit and foreign panels getting even cheaper by the month, what can be done to keep solar expensive and out of reach of homeowners? Something needs to be done before fossil fuel plants become slightly less profitable, climate and future of the country be dammed!
    • by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Friday November 11, 2022 @09:14AM (#63043149) Homepage Journal

      Due mostly to massive tariffs

      haha no. It's mostly due to supply and demand of labor. Solar panels are not much more expensive here per watt than what they cost anywhere, but installs cost a lot more, because there are not enough installers. We got our REC Twinpeak 2 panels at $0.44/watt.

      • The reality is they cost 30% more to start, and are still sitting at 15% [greenbiz.com]. Supposedly this was supposed to help American solar manufacturing, which is currently not able to supply 1% of needs. Further, with the tariffs barely making American solar production profitable, there is no other market available to sell in and demand is down due to costs. Instead, if American solar was subsidized, solar would be much cheaper increasing sales and opening up the market to the world as prices would then be competiti
        • The reality is they cost 30% more to start, and are still sitting at 15%.

          The reality is that 15% is a pittance, compared to the fact that people are paying 2-3 times as much for installations here.

          • It’s still not a pittance, it’s one of the major factors causing problems. But yes, there are many factors that mysteriously all come together to make American solar unworkable while working far better everywhere else.
            • You said it was the main factor.

              It is not even close.

              Luckily, the whole thread is there, so everyone can see it.

              • It a if not the main factor. You fail to realize I’m not taking about residential solar exclusively - the cost of panels exceeds 50% of the cost of commercial installs and the 30 dropping to 15% price hikes has been brutalizing investment and adoption during a free money phase of the economy. A change of 15% is massive and completely erases any semblance of caring for the environment but instead reeks of crony regulatory capture.
                • by jbengt ( 874751 )

                  . . . the cost of panels exceeds 50% of the cost of commercial installs . . .

                  Citation needed. [letsgosolar.com]
                  Rule of thumb is installation doubles the cost, though I see estimates from several years ago where installation is a little more than half the purchase price of the panels. But that doesn't count costs of design, site development, structural supports, inverters, wiring, and other equipment to tie into the load/utility. Of those, purchase costs of solar panels and inverters have trended down. Costs like labo

                  • Lmafo your own source says 40% ball park and that’s with reduced cost due to the tariffs lowering and for a building, grid storage is more like 50-60%. Your own source shows the panel cost as being the biggest cost. That’s a massive problem that never needed to be there. Paying Americans less for the work to install is one issue, a far more difficult one than simply charging 30 to 15% more just to “boost” American production that not only never happened (still about 1% of demand)
      • The actual cost of the labor isn't that high but the companies can tack on massive premiums because solar is highly desirable. Premiums that are much much higher than anything the government is subsidizing. If that money was going into higher wages probably wouldn't be as much of an issue because the guy actually doing the install work for you would have more money and that tends to spread the money around.

        For the record I worked briefly as an electrician and decides a few guys that work on the cooling
    • Yes, you're right. It's Big Oil which is so deeply entrenched in California politics.

      The reason is right there in TFS. The credits aren't "equitable" enough because they believe poor people who don't have solar are essentially subsidizing the cost of maintaining the electric grid for middle class / rich people with solar panels.

      • by sfcat ( 872532 )

        Yes, you're right. It's Big Oil which is so deeply entrenched in California politics.

        Actually, the last two governors of CA (Newsom and Brown) are both from large fossil fuel extracting families. The Browns own more CA wells than any other family. The Getty's (which Gavin married into) are one of the largest fossil fuel extractors on the planet. Surprising huh.

      • by mysidia ( 191772 )

        Seems this is a billing issue.. that doesn't merit ax'ing 75% of the benefit.

        It merits separating electric transmission costs from power consumption and fuel costs.

        And have the "Net" metering net out the consumption fee only. With the transmission fee only allowed to cover their share of the costs to maintain the shared transmission infrastructure, And the consumption fees only allowed to cover the part of the costs regarding generating/acquiring power and the power generators' local non-shared transmi

  • Kills solar dead. (Score:5, Interesting)

    by Deathlizard ( 115856 ) on Friday November 11, 2022 @09:24AM (#63043163) Homepage Journal

    I hope PG&E has plans to build more nuclear plants, because if you think you got rolling blackouts now...

    No one, and I mean NO ONE short of environments and hardcore grid cutters will invest in a solar system for their home if it doesn't pay for itself within the lifetime of the system. You cut the credits that low, you better have UPS's and Coleman lantern subsidies for low income families since half the time their electric is going to be out.

    • Re: (Score:2, Interesting)

      by drinkypoo ( 153816 )

      I hope PG&E has plans to build more nuclear plants

      Yes, of course they do. They don't make money on doing maintenance, so they just don't do it. The "camp" fire (worst name ever, thanks cal fire!) was caused by a 99 year old hook wearing out. Their profits are mostly from new generation projects, and nuclear is the most expensive kind of generation project, so they would absolutely love to build some nuclear plants. Luckily, Californians do not want them, and there is no water for them anyway, so the odds of new ones are relatively low.

      • Re: (Score:2, Informative)

        by Tora ( 65882 )

        Luckily Californians do not want them?

        Sounds like you've been drinking the cool-aid a little bit too much.

        You do realize Nuclear is the GREENEST form of energy on the planet, even considering the complete lifecycle and all the problems that have happened?

        But don't take my word for it. How about listening to Michael Shellenberger, who was once the whitehouse's "green" person.

        https://www.youtube.com/watch?... [youtube.com]

        He ends with:

        > Now that we know that renewables can't save the planet, are we going to keep letting

        • Re: (Score:3, Informative)

          by drinkypoo ( 153816 )

          You do realize Nuclear is the GREENEST form of energy on the planet

          That is total bollocks [nrel.gov].

          • by clovis ( 4684 )

            You do realize Nuclear is the GREENEST form of energy on the planet

            That is total bollocks [nrel.gov].

            I don't see how that document supports your position. That document is statement of the harmonization project vs the variability of the literature reviewed.

            Here's a document from the same source (nrel.gov) that shows numbers. See the page 3 chart for "Median Published Life Cycle Emissions Factors for Electricity".
            The lowest life cycle emissions are ocean wind (8-13) followed by nuclear.(13)
            photovoltaic is 43.

            • The lowest life cycle emissions are ocean wind (8-13) followed by nuclear.(13) photovoltaic is 43.

              So what you're saying is that nuclear isn't the best, right? Which, BTW, you can figure out from the report, the point of harmonized figures is that they are useful figures.

              • by sfcat ( 872532 )
                No, what it is saying is that nuclear is the best provider of baseload power we have. Wind and solar are unreliable sources of variable power. They are two different things. You can't replace fossil fuels providing baseload with any variable source. So instead we double generate that power using natural gas peaker plants. Those wind and solar numbers don't take that into account. Also, not for nothing but that report says that solar makes more than 3x the amount of CO2 per watt generated as nuclear.
                • No, what it is saying is that nuclear is the best provider of baseload power we have.

                  We need more load-following power, not more baseload.

                  You can't replace fossil fuels providing baseload with any variable source. So instead we double generate that power using natural gas peaker plants. Those wind and solar numbers don't take that into account.

                  If you really think that's how things work, then you are even dumber than I thought, and I was already not too impressed with you. We use fossil fuels to handle variable demand because your beloved nuclear power plants can't do that efficiently, and they are already the most expensive form of generation we have. Wind however is excellent at load-following, because you can vary turbine output rapidly by pitching the blades. Even if we were going to keep th

        • Green as in >$10 billion to build a single plant.

      • by sfcat ( 872532 )

        was caused by a 99 year old hook wearing out

        You do realize that CA regulators set the maintenance and tree trimming budgets for PG&E right? I know it is fun to think all that money went into executive's pockets but the truth is it went to pay for renewables in some form or the other. Part of that is overpaying for residential solar dumped back into the grid. But that isn't very entertaining and doesn't let you blame "the rich" so you don't want to hear it.

        • You do realize that CA regulators set the maintenance and tree trimming budgets for PG&E right? I know it is fun to think all that money went into executive's pockets

          You do realize that PG&E has been engaging in a combination of on one hand not cutting trees they're contractually obligated to cut, and on the other hand literally cutting trees they're not supposed to cut and profiting from their removal? Trees were marked and cut on Cobb Mountain after the fires in Lake county that were never supposed to be cut at all.

      • by mysidia ( 191772 )

        and there is no water for them anyway, so the odds of new ones are relatively low.

        Don't necessarily need tons of water... the eventual possibility is to start building VHTRs [wikipedia.org] which are Helium-cooled or Molten-salt cooled, instead of by water.

    • The end of net metering is just going to sell a lot of battery storage. It won't kill solar - it will just kill the benefits to the grid stability.

    • They cite estimated monthly savings of $100-136/ month off an average home's electric bill once the compensation is adjusted as they propose... how many monthly $100 savings does it take to pay off the average home solar installation?

      • Read one sentence further in the summary and it says 9 years, but the math doesn't seem right on that. Maybe it includes some kind of large subsidy I don't get in my area.

  • Subsidy, or Benefit? (Score:5, Informative)

    by necro81 ( 917438 ) on Friday November 11, 2022 @09:32AM (#63043179) Journal
    For years now the question has raged: are all the other utility customers subsidizing rooftop solar by paying above-wholesale rates for that power, or is there a system-wide benefit from all that distributed energy (e.g., from reducing strain on transmission and obviating the need for new centralized power plants)?

    The state of NH and Public Utility Commission commissioned a study [nh.gov] to determine the value of these distributed energy resources (the study also included microhydro and small-scale wind). It was released just this past September, so the results are timely (although the scope is limited to NH). Their conclusion: it's a net benefit. On a strict cost basis, the average rate-payer's bills are forecast to increase by only 1% over the coming years due to increasing (net-metered) solar deployment. If one places any monetary value to the environmental benefits (mainly avoided fossil fuel use), it becomes a substantial win. NH does not have strict energy portfolio requirements (X% green by 2030, say), but does participate in a regional greenhouse cap cap-and-trade system. If those efforts tilt more heavily towards green energy (as all of NH's neighbors are doing), the value of that distributed solar to the whole system increases.
  • Billions of dollars in investment and revenue are potentially at stake

    And nobody cares about people, unless they can be used as an excuse. If you really want to make people to act on climate change, make things as simple as they are apparently now in California.

  • by VeryFluffyBunny ( 5037285 ) on Friday November 11, 2022 @09:37AM (#63043197)
    OK, they've claimed that it hurts poor & low-income households. How will the proposed changes improve conditions for poor & low-income households? Are the utilities saying that they're going to charge them less for electricity? By how much?
  • by Swervin ( 836962 ) on Friday November 11, 2022 @09:59AM (#63043241)
    Don't give them a choice, take your system off grid. They can't control your compensation when you're offsetting your usage. Look at your system size, choose some household loads, and install batteries that will let you run those loads full time on batteries. Circuits with lights and small appliances are the best targets.
    If you use an appropriate transfer panel you can even manually choose whether the circuits on your transfer panel are on grid or on solar, while still not being grid tied.
    • Don't give them a choice, take your system off grid. They can't control your compensation when you're offsetting your usage. Look at your system size, choose some household loads, and install batteries that will let you run those loads full time on batteries. Circuits with lights and small appliances are the best targets.

      If you use an appropriate transfer panel you can even manually choose whether the circuits on your transfer panel are on grid or on solar, while still not being grid tied.

      This makes no sense. If you're off grid you are getting zero compensation. They're proposing lowering the compensation that net metering gives- not inverting it so you suddenly somehow paying the utility so give them your excess electricity. Going totally off grid will make solar even less financially attractive.

      In other words, they're saying, "Instead of $1 per watt, we're now going to pay you $.25 per watt". Your response to that is- "Screw you guys! I choose $0 per watt!"

      • by jbengt ( 874751 )

        This makes no sense. If you're off grid you are getting zero compensation.

        No, the compensation Swervin was advocating for was using all the electricity the solar panels generate, by using batteries to store excess and use it later. If you use it all, you're saving the full retail rate no matter what the price they set for buyback.

      • by Swervin ( 836962 )
        If you bank the power you're not using it instead of selling it back you offset the full power rate versus selling power to them for 25%. Your gain is 75%.
      • by srmalloy ( 263556 ) on Friday November 11, 2022 @10:55AM (#63043377) Homepage
        I think the point he's making is that, under the current system, you're essentially 'banking' your solar production with the utility company, getting what amounts to a credit for power returned to the grid equal to the cost of the power you take from the grid when your generation isn't sufficient. Adding storage to your home system enables you to do your own time-shifting, banking the overproduction yourself and using it when you're not generating as much, and only tapping the commercial grid when your storage runs out. So instead of putting 100kWh into the grid and getting a 'credit' for 100kWh to use, you're storing that 100kWh into your local storage and can use all of it, rather than -- under the reduced compensation program -- putting 100kWh into the grid and getting a 'credit' for 70kWh to use. You have to pay for your local storage, so the cost-benefits analysis for this will depend on the cost of the storage and the difference between what they credit you for the power you return to the grid and what they charge for the power you take from the grid. For example, if you're paying $0.10/kWh for power, but they're only crediting you for $.08/kWh, that's $.02/kWh difference. If you use 1000kWh in a month, and produce 1000kWh, but half of that is a round-trip into and out of the grid because of when you use power vs. when you produce it, that's 500 times $0.02, or $10/month. If a 1000kWh storage system costs you $10,000, that's going to be 100 months -- about eight years -- to pay off. If you're only getting $0.05 for the power you put in, that's $25/month, so the storage would pay off in 20 months.

        Where the argument for the change falls apart is the claim that the current system is somehow inequitous to households without solar-generation systems. If you have a solar-generation system, all you're getting back is a credit for the excess power you put into the grid -- you're still paying the line charges and the other fixed costs that all households pay, and the non-generating households aren't paying anything extra because of the power you put into the grid. The only way that it could be considered inequitous is if you argue that the non-generating households have a 'right' to have solar-generation systems, and that you are elevating yourself above them because of their inability to acquire one for themselves -- ignoring the fact that poor and low-income households will overwhelmingly live in rental properties, often multi-family structures, where it is the landlord, not the residents, who would get any benefit from solar generation on the property.
        • Where the argument for the change falls apart is the claim that the current system is somehow inequitous to households without solar-generation systems.

          Correct. PG&E wants us to believe that rooftop solar is unfair to residents who don't have it, but they want us to believe that somehow buying power from them instead of from your neighbors through them is going to be fairer. The same corporation that's been polluting California and setting it on fire for over a century, that has been regulated repeatedly explicitly because they unfairly charged customers, wants us to believe they're the fair guys.

      • It's a bit more like: "Instead of paying you $1 per watt and if you need more than you have to sell, we'll sell a watt to you for that same $1; now we're only going to pay you $0.25 per watt but go on selling watts to you for the full $1." Now, you might argue that PG&E should get some margin for that $1 watt... though given their general malfeasance I'd say the only thing we owe anyone from PG&E is a swift kick to the head, but whatever... so maybe it's justified to give them a 5-10%-ish (But no m

  • by Anonymous Coward

    Pennsylvania breaks an electric bill into three parts: generation, transition, and transmission.

    Generation charges cover the cost of generation. Transition charges pay for maintenance of voltage-modifying facilities (substations), and transmission charges pay for the cost of maintaining transmission lines.

    When you generate with solar in PA, you only get paid the generation rate for your production. It is also, by some magical coincidence, the lowest part of your electric bill. So, you're basically selling y

  • I haven't looked into net metering - but were the utilities foolish enough to net out the distribution charge?

    I would have expected that net metering is paying for the energy, not the transport - that is if you providing energy then you still have to pay for use of wires, but you do get paid for the energy produced.

    Or is that what this new rule does - it only applies net metering to energy usage, not transit?

    • I've had panels for a long time (2006). Back then the meter I had was the old spinning meter, basic. About the only thing they could do easily was net metering. And yes, it was net including transit charges, but negative bills were not refunded, they were rolled to the next billing cycle. But then they got more people (price came down, I paid a king's ransom for mine being a good little dummy) and it was starting to cost them real money with all the solar installations. They rolled out electronic metering.
      • by jbengt ( 874751 )
        My bill has always included separate set monthly meter charge based on the capacity rather than usage. At least since "deregulation" it has also included separate distribution charges, and energy charges.
        • Not sure where you live, but in the US, there has always been a meter charge, and then the bill is broken out based on usage into various components as you say. Commercial accounts can get a variable fixed charge based on connection capacity. But I am angry that the power company unilaterally went from net metering to tariff based. When I installed solar at great expense, there was no discussion of this could change. I have read more about the Cal change and good for them, they are grandfathering people who
  • Wholesale (Score:5, Interesting)

    by markdavis ( 642305 ) on Friday November 11, 2022 @10:15AM (#63043267)

    >"Utilities argue that rooftop solar homes that greatly reduce or zero out their monthly electric bills are effectively forcing households without panels to bear more of the cost of maintaining the electric grid"

    This is true, to an extent.
    When selling back electricity to the grid, it should pay at "wholesale" rates, which will be lower than what you pay to get electricity. This is fair- you are using their infrastructure to push your electricity out to other customers. Coupled with a small monthly connection fee, it should make it work out for everyone.

    • Correct. Buy at retail, sell at wholesale.

      I don't know how it works in CA, but where I live the electric bill has two parts, the connection fee, a flat rate per day, and the power usage, the usual $/kw-h.

      As a side note, the connection fee for three phase is higher than for single phase.

  • I've been driving I-10 through Desert Center for nearly 30 years and there's never been anything going on in the desert until now. Now, there's one massive solar field up and running with two more in the process of construction. Joe Schmo with his rooftop solar is effectively competition because with net metering, he won't be paying for those massive solar fields. So, the utilities with way more political pull in Sacramento are going to pull the rug out from under Joe Schmo now that he's gotten a second

    • Yeah, well, is there some reason to think rooftop solar would be cost-competitive with those massive solar fields? They have easy ground-level access for install and maintenance, are put in ideal locations, and can tilt to track the sun throughout the day. I think solar is great. Rooftop solar, not so sure. But I am glad homeowner panels and battery storage are an option, since it enables off-grid living, and the price sets a baseline that utilities should be able to beat.
      • Rooftop solar has the problem that a lot of installers literally die. But looking into that reveals that most of those deaths could be avoided by installing and correctly using a roof anchor and a harness, and in some cases that was actually required and didn't happen. You could also probably avoid some of those deaths with air bags, yep, bouncy castle technology could save the day. But that requires really making sure that people are actually using safety equipment, and also using it correctly.

  • We're gonna yank subsidies on one of the ways we have of compensating.

    That'll make it ALL BETTER!

    Hey...why have the lights been out for a week?

  • It's the law (Score:4, Insightful)

    by WaffleMonster ( 969671 ) on Friday November 11, 2022 @10:56AM (#63043381)

    This is awesome. Mandate solar panels by law and then kneecap the homeowner.

  • The electricity should be credited at retail up to $0 on the monthly bill and excess beyond that should be wholesale. Really the excess should be metered and sold at the market rate but they don't have that sort of utility market in CA like they do in TX.

  • by rickb928 ( 945187 ) on Friday November 11, 2022 @11:12AM (#63043425) Homepage Journal

    On what part of the elephant you've grabbed onto.

    PG&E seems to be like most utilities in the US, seeking profit and avoiding unwelcome regulation. Huh, imagine that. But I read here and elsewhere:

    - PG&E avoids maintenance, as a cost, and prefers to rebuild at stakeholder expense.
    - PG&E is prevented from performing maintenance by onerous state regulations.
    - PG&E gouges its customers by every means available.
    - PG&E is stuck in a regulatory purgatory, unable to satisfy any stakeholder.
    - California residents that can install solar generation are being cheated, and have been, by PG&E be (fill in any of myriad complaints).
    - California residential solar generators are cheated by not getting fair compensation.
    - California residential solar generators don't pay their fair share of transmission costs, and cheat everyone else.

    I dunno, I live in Arizona and get solar panel come-ons at my doorstep every other week. Some still tell me of the AZ rebate program the Legislature passed a while ago. Full disclosure, the Legislature actually defeated that measure. They lie. And they really wanna sit with me and show me how much money I will make or save. And I've sat through one such presentation. Cannot they please use 5th grade math to prove their point? Nope, the equations don't balance. And one of my neighbors admits their solar install has neither paid off nor met expectations, and it is aging enough to start failing. They have an ideal install. Mine would be less than ideal, poor orientation.

    But residential solar is going to be important, and storage systems equally. Already the utilities are aware of the grid failure awaiting us if electric vehicle charging expands as expected... There are no free lunches.

    And from my vantage point I see California regulation causing more trouble than it is solving. But that's a simplistic view of the problem. California politics are toxic. Add in the predictable corporate greed and self-interests of everyone that wants to be righteous and grand, and you've got trouble.

    And electricity is not even the most important problem. Water is. Arizona cuts consumption. California both increases and demands others cut. The Federal government is threatening to act to save the Colorado River from real devastation. And when water use in California is merely leveled off, then no more houses are built, no new business created, agriculture will reduce affecting the entire world, and the real fight begins.

    In all of this, sane and practical policy decisions are no longer sought, rather we seen divisive and harmful conflicts aimed to cause us real harm, a strategy designed, I believe, to ultimately permit domination by forces we will regret not seeing and defeating sooner.

    There is no room in the current debate for fair and reasonable resolution. Why doesn't matter much, right now, because it will end in disaster no matter why.

  • If you care about the environment wind, CSP, nuclear and even utility PV are better choices all having lower carbon footprints. If you care about cost utility scale PV is half the cost of residential systems.

    If you care about public safety, solar itself (panels, inverters) add additional fire risk, more importantly should fire break out for other reasons panels limit firefighter roof access because they won't go near them. More people on roofs for installation and ongoing maintenance of high current MLPE

    • The case for rooftop solar is that it reduces infrastructure costs for the utility, reduces heating and cooling costs for the homeowner, and typically produces power faithfully for decades without any additional pollution beyond production and install so long as that install is performed responsibly.

      The deaths are a real problem, solar installer is one of the most dangerous jobs in America in fact, but most of the deaths are preventable through the use of the correct equipment [ca.gov]. Roof anchors can be installed

      • The case for rooftop solar is that it reduces infrastructure costs for the utility

        The rate payer bankrolls utilities. The objective function is how much the customer has to dish out in exchange for reliable energy. There is no case for rooftop solar being more cost effective than utility scale PV in CA.

        reduces heating and cooling costs for the homeowner

        How does PV reduce heating costs? There is at least a foot between the panels and (now) shaded roof plus 20% of the energy is converted to electricity.

        and typically produces power faithfully for decades without any additional pollution beyond production and install so long as that install is performed responsibly.

        So does utility scale PV only better and more cost effectively. Also the chance of rooftop MLPE lasting for decades without replacemen

  • by caseih ( 160668 ) on Friday November 11, 2022 @11:53AM (#63043519)

    Solar is awesome and I'd like to see more of it. But the way solar is currently sold to home owners is a bit of scam. In my opinion the compensation needs to be cut. Also what always astounds me about home, roof-top solar is that home owners expect, and currently have been able, to get paid for selling electricity back to the grid at retail rates. That's insane and unsustainable. why on earth should home solar owners expect to get paid retail rates for generated electricity? A power company buys power from the generators at wholesale rates, and then sells it at retail, covering the costs of transmission and line maintenance. Yet somehow we've managed to get masses of people that expect a power company to pay full retail rates for buying back power. How does that make sense? Furthermore micro solar is really hard to balance on the grid. Even worse peak solar does not correspond with peak demand in most jurisdictions. The problem is significant enough that in Australia power companies are starting to charge fees to to home solar generators. It's only a matter of time before we see that in North America. The only way to solve these problems is with storage and batteries are quite expensive, and will have to be borne by the home owner ultimately.

    • OMG, an argument not based on religion.

    • It's not fair for the homeowner to get paid the same price they pay. But it's also not fair to pay them only the same wholesale price that a bulk generation facility would pay, because they are actually reducing the utility's costs.

      • by caseih ( 160668 )

        I agree. It will end up being some kind of middle rate determined (hopefully) but some kind of free-ish market.

  • by akw0088 ( 7073305 ) on Friday November 11, 2022 @12:28PM (#63043631)
    Truth is the energy company wants to pay you 30% of the retail rate for your excess solar energy, that then travels to your neighbor's house, who then gets charged 100% plus distribution costs and fees
  • This is just protectionism, plain and simple. But in some ways I can see why they'd have to do this. The existing electric utility companies can't be allowed to go bankrupt because people are generating their own power from their own rooftops, and more recently storing their own power in battery banks for their own use -- then expecting to be paid for power generated in excess of that. However this is just 'growing pains' as electricity generation becomes more and more decentralized. In the meantime I can s
    • by sfcat ( 872532 )

      This is just protectionism, plain and simple.

      For a utility? So just so you know, a utility is a company granted a monopoly in exchange for giving up much of their own decision making. We do this in industries (like power) whose products are both natural monopolies (like an electric grid) and allows multiple other industries to exist.

      PG&E has gone bankrupt several times recently (3x in the last 20 years). Has that helped? I feel like you don't really understand how any of this works. So let me just give you one fact, the tree trimming budge

  • Let's do this instead: you get a dollar-for-dollar bill credit for any electrical upgrades that you do including getting more efficient appliances, adding solar cells etc.

    No more of that "based on what you provide" crap. After all, consumers shouldn't be on the same model of kickbacks that providers get for doing nothing.

  • You should not receive fuul retail for your solar power. That's just stupid. Building and maintaining the distribution net is - very roughly - half the cost that a utility has. They also have to consider storage, grid balancing, etc..

    Wholesale prices should becaround 1/4 to 1/3 of retail. Anything more is a subsidy on the backs of other customers.

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