California’s new solar panel rules must be ditched, critics say - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
February 13, 2023 Property and Casualty News
Share
Share
Post
Email

California’s new solar panel rules must be ditched, critics say

Daily News (Los Angeles, CA)

Do-over!

Critics who hate the state’s new rooftop solar rules — which slash the amount that future rooftop solar owners will get for exporting power to the grid — are demanding a rehearing before the California Public Utilities Commission.

“The decision is part of a conspiracy to violate antitrust laws,” one petition for a do-over asserts.

The alleged conspirators? The three big utilities — Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric (who said that current rooftop solar owners are credited for far more than their exported power is really worth, forcing their non-solar neighbors to pay for it).

The co-conspirators? Gov. Gavin Newsom, the Natural Resources Defense Council, The Utility Reform Network and the California Public Utilities Commission itself (which favored a revamp).

The conspiracy’s objectives? “Wholesale and retail price fixing, group boycotting, price discrimination.”

“We allege that the CPUC has effectively surrendered its regulatory authority … over the IOUs (investor-owned utilities) by affording the IOUs undue influence and control over the CPUC deliberations, decisions and actions … and by politically incestuous relationships between regulator (CPUC) and regulated (IOU) officials,” said the motion by CAlifornians for Renewable Energy and Michael E. Boyd.

Illegal!

A separate request for a rehearing, by the Center for Biological Diversity, the Protect Our Communities Foundation and the Environmental Working Group, is markedly less colorful.

Instead of asserting conspiracy and manipulation, it argues that the PUC made legal errors and thus the decision must be reversed.

The errors? California law requires the PUC to foster “continued sustainable growth” of solar power and encourage its spread in disadvantaged communities. The new rules will do neither, they argue.

The PUC also weighed the costs of rooftop solar on non-solar folks too heavily, and weighed the savings from canceled transmission projects (because rooftop solar meant they weren’t needed) too lightly, they say.

“By adopting a successor tariff that increases payback periods and decreases bill savings, the decision will devastate solar adoption rates and thus fail to ensure the continued sustainable growth of distributed generation,” the rehearing request says.

Several groups have lined up in support of a rehearing with the PUC, saying that the climate emergency makes swift action critical.

Deja vu

A response filed jointly by the three big utilities effectively sighs, “Haven’t we done this already?”

The rehearing request reprises arguments “that were fairly litigated in the proceeding and resolved in the decision,” they say. The PUC made factual and policy determinations within its discretion. The groups “failed to present any legal error,” and their “attempt to re-litigate the same issues should be rejected and the application for rehearing denied.”

Their critics’ error, the utilities assert, is interpreting the phrase “continues to grow sustainably” as meaning “maintaining current growth rates.” The PUC commissioners acknowledged that there’s a drop-off in rooftop solar installations after updates to the rules (what’s officially known as “net energy metering”), but that growth eventually recovers.

The PUC’s rejection of critics’ “strained interpretation of the statute” is not legal error, the utilities argue.

So what’s next? The parties will file responses with the PUC. The PUC will review everything and determine whether the folks asking for a do-over demonstrated legal error in the underlying decision. Then the PUC will issue a formal decision, yay or nay, on a rehearing, “but there is no specific timeline for the CPUC’s issuance of that decision,” said spokeswoman Terrie Prosper.

What’s this about again?

About a quarter-century ago, California sought to juice the adoption of rooftop solar. It put a system in place that compensated rooftop solar owners handsomely for exporting excess power to the grid for their neighbors to use.

As the years went by, though, huge industrial-scale solar farms came online. Solar power became cheaper. But the amount rooftop solar owners got for their power did not decrease, the utilities argue.

That — along with the fact that solar owners weren’t hit with the fixed costs related to maintaining the grid — resulted in a big cost-shift to non-solar households of some $4 billion a year, analyses have found.

There have been adjustments to “net metering” over the years, and a 2013 law required the PUC to address this cost shift. Its first wildly controversial proposal for how to do this, released more than a year ago, would have charged all solar owners a higher fee for fixed costs and reduced credits for exported energy. Rooftop solar owners went ballistic. The proposal was withdrawn.

This new plan, adopted in December, tries to walk a middle ground. Vitally, it exempts all existing rooftop solar owners from any changes. They’ll remain on their current tariff plans for 20 years after their systems hooked into the grid.

Going forward, folks who install new systems with batteries to store solar power — and who can pump energy after dark when it’s most needed — will get the most handsome compensation. Folks without batteries, who only pump excess energy to the grid during the day when it’s already plentiful, will get much less compensation.

The goal is to transition to a “thriving” solar-plus-storage marketplace, to avoid the need for fossil fuel-powered plants to make electricity after the sun goes down, the PUC said.

The new rules will save new residential solar customers $100 a month on average, and solar-plus-battery customers will save at least $136 a month on average, the PUC said. It will also allow eligible customers access to $900 million — with $630 million set aside for low-income customers — to encourage solar-paired-with-storage systems and stand-alone storage. New systems would be paid off by savings in nine years or less.

The decision was hated by folks on all sides of the issue. It cements the $4 billion-a-year cost shift onto non-solar backs for perpetuity, some said. It will result in the destruction of the solar industry in California, others said.

We’ll see, soon enough, where the PUC stands. Predictions welcome.

©2023 MediaNews Group, Inc. Visit dailynews.com. Distributed by Tribune Content Agency, LLC.

Older

New car sales in California down for 2022 but electric vehicles sales move into overdrive

Newer

South African Insurer Hollard Group Risk Implements Sapiens for Complete Core Transformation for Life & Pensions

Advisor News

  • Why aligning wealth and protection strategies will define 2026 planning
  • Finseca and IAQFP announce merger
  • More than half of recent retirees regret how they saved
  • Tech group seeks additional context addressing AI risks in CSF 2.0 draft profile connecting frameworks
  • How to discuss higher deductibles without losing client trust
More Advisor News

Annuity News

  • Allianz Life Launches Fixed Index Annuity Content on Interactive Tool
  • Great-West Life & Annuity Insurance Company Trademark Application for “SMART WEIGHTING” Filed: Great-West Life & Annuity Insurance Company
  • Somerset Re Appoints New Chief Financial Officer and Chief Legal Officer as Firm Builds on Record-Setting Year
  • Indexing the industry for IULs and annuities
  • United Heritage Life Insurance Company goes live on Equisoft’s cloud-based policy administration system
More Annuity News

Health/Employee Benefits News

  • Findings from University of Nevada Yields New Data on Opioids (Aca Dependent Coverage Extension and Young Adults’ Substance-associated Ed Visits): Opioids
  • Recent Studies from University of Tennessee Add New Data to COVID-19 (Uncovering Gaps in Childhood Vaccine Coverage: A Post-COVID-19 Analysis of Vaccine Disparities in Tennessee): Coronavirus – COVID-19
  • AM Best Affirms Credit Ratings of Prudential Financial, Inc. and Its Life/Health Subsidiaries
  • TrumpRx is here. What you should know
  • Report: Health insurers denied one in five claims in 2024
More Health/Employee Benefits News

Life Insurance News

  • Allianz Life Launches Fixed Index Annuity Content on Interactive Tool
  • AM Best Affirms Credit Ratings of Orion Reinsurance (Bermuda) Ltd.
  • AM Best Affirms Credit Ratings of Prudential Financial, Inc. and Its Life/Health Subsidiaries
  • Globe Life reports solid quarter of sales, Bermuda reinsurer ramps up
  • Equitable reports mixed results but looks ahead to a stronger 2026
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

LIMRA’s Distribution and Marketing Conference
Attend the premier event for industry sales and marketing professionals

Get up to 1,000 turning 65 leads
Access your leads, plus engagement results most agents don’t see.

What if Your FIA Cap Didn’t Reset?
CapLock™ removes annual cap resets for clearer planning and fewer surprises.

Press Releases

  • Prosperity Life Group Appoints Nick Volpe as Chief Technology Officer
  • Prosperity Life Group appoints industry veteran Rona Guymon as President, Retail Life and Annuity
  • Financial Independence Group Marks 50 Years of Growth, Innovation, and Advisor Support
  • Buckner Insurance Names Greg Taylor President of Idaho
  • ePIC Services Company and WebPrez Announce Exclusive Strategic Relationship; Carter Wilcoxson Appointed President of WebPrez
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet