The California Public Utilities Commission last month overhauled the rules that compensate solar customers in the state
rules in California that determine the size of the credits customers receive on their utility bills when their rooftop solar systems generate more energy than they consume.will include $900 million in upfront incentives for customers to pair solar with battery storage systems, with $630 million set aside for low-income customers. The commission estimates the updated rules will save average residential customers with solar-plus-storage at least $136 a month on their utility bills.
One of the key provisions alters the way rooftop solar owners are compensated for the excess electricity their systems send back to the grid. Instead of being credited at the retail rate of electricity, customers will get paid at the “actual avoided cost.” That figure is lower than the retail rate during the daylight hours when solar energy is abundant and cheap, but it’s higher during the evening hours — when solar production ramps down to practically zero when the sun goes down and California’s electric grid is under the most stress.
The California Solar & Storage Association — which vehemently opposed the rules changes — has estimated the average compensation rate would drop from 30 cents per kilowatt to 8 cents, a reduction of 75 percent.The request for a rehearing zeroes in on a state law that became part of the Public Utilities Code.
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