Protestors speak out against proposed rooftop solar rules

Proposed rooftop solar rules could impact Southern California Edison customers whether they have solar panels or not.

The California Public Utilities Commission (CPUC) has a proposed decision that could change the financial rules for rooftop solar panels. More than 60 protestors gathered outside the Southern California Edison office in Cathedral City on Wednesday morning in response to the proposal.

"We're here quite simply to send a message to Southern California Edison. They are trying to shut down the solar industry throughout California so they can keep raising rates and make sure people have no options," said protestor Carter Lavin.

The CPUC is proposing changes to the current structure of Net Energy Metering or NEM. It is when a rooftop solar system produces more energy than it consumes. The excess energy is sent back to the grid, and customers get surplus credits for it.

Possible changes include how much solar customers get paid when they send excess power back to the grid. It'd be a rate closer to the actual market value of the energy at the time it's generated, which is much lower.

Kathy Fairbanks is a spokesperson for the Affordable Clean Energy For All coalition.

"The subsidies instead of kind of coming down with the cost of solar panels to reflect the market, the cost of solar panels has gone down by 70%. But the subsidies keep going up. Now we've got a mismatch," said Fairbanks. "Now, the subsidies don't just come out of thin air, someone's paying for that. And the people who are paying for those subsidies are people who don't have solar panels."

In December, a  204-page proposed decision was released by the CPUC. If it is passed, it would change the already existing solar regulations.

Protesters delivered SCE a petition with more than 15,000 signatures from people who oppose the changes.

"The utility regulators are considering accepting would be a massive job killer; we're looking at like 50 to 70% of this market collapsing," said Lavin.

According to SCE, "the commission wants to make changes to reduce the financial burden on households without solar, including the most vulnerable, low-income customers, while supporting the sustainable growth of the solar industry growth."

Those in favor of the changes say NEM needs to change to make it fair for all. They said people without rooftop solar are paying nearly $200 more each year to cover the costs of solar panel users.

"As more and more people adopt solar and don't pay their fair share, the pool of non-solar customers grows smaller and smaller, and the burden on them is bigger and bigger," said Fairbanks.

SCE posted the commission's proposed changes which include:

• Compensating rooftop solar customers for the excess power they generate and export to the grid at a rate much closer to the actual market value of the energy at the time it’s being generated.
• Extending the “payback” period for rooftop solar customers from the current 5 1/2 years to about 10 years, consistent with payback periods across the country.
• Creating a monthly Grid Participation Charge based on the size of the customers’ solar system to ensure these customers don’t avoid paying their fair share of maintaining the electric grid.
• Spending $600 million over four years to support solar installations for low-income households.

A final vote for the proposed changes was scheduled for Jan. 27 but has been delayed until further notice.

Southern California Edison supports the growth of solar, but not at excessive cost to our customers. The California Public Utilities Commission is proposing to reform the state’s current Net Energy Metering program so that it’s more equitable for all Californians and has issued a proposed decision that would reduce but not eliminate the existing subsidy for rooftop solar.  

Correcting the current cost shift is not placing a “tax” on solar customers; it’s simply ending an outdated subsidy that puts an unnecessary burden on non-solar customers, and making sure all customers are paying their fair share for the electric grid they all use. 

SCE is part of a coalition, Affordable Clean Energy for All (ACEA), made up of 120 consumer, community, environmental, business, labor and other groups and California’s other investor-owned utilities. This coalition supports the growth of solar in California, but not at the expense of underrepresented and underserved communities, as is happening today. 

- response from Ron Gales, SCE spokesperson