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Musk Blasts California’s Net-Metering Proposal As ‘Anti-Environment Move’

by Jeremy Beaman
January 13, 2022, 9:31 AM
in News and Opinion
Reading Time: 2 mins read
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solar panels roofTesla CEO Elon Musk and his green energy company are coming out against a new proposal in California for what’s known as “net energy metering” that is designed to shift more of the cost of maintaining the electricity grid onto residential solar customers.

Musk dubbed the state Public Service Commission’s proposal, which would levy a new “grid participation charge” on solar customers, an “anti-environment move.”

Tesla is also urging residents to make their opposition known to regulators and Gov. Gavin Newsom.

The PUC proposes a tariff of $8 per kilowatt of installed solar per month, a change meant “to capture residential adopters’ fair share of costs to maintain the grid and fund public purpose programs.”

It would lower compensation rates to solar customers, who are presently able to sell their excess power to utilities at the prevailing retail rate.

The PUC maintains the rules need to be “modernized to incentivize customers to install storage paired with rooftop solar to help California meet its net peak shortfall and ensure grid reliability.”

Proponents also argue it makes the cost of maintaining the grid fairer, as solar customers tend to be higher earners and pay less to utilities because most of their power comes from their panels.

To that end, an “equity fund” of up to $600 million would also be created to help low-income residents access clean energy programs.

Opponents insist it will make rooftop residential solar energy uneconomical in California, which has by far the most solar installations of any state, according to the Solar Energy Industries Association.

“Bizarre anti-environment move by govt of California,” Musk said in a tweet.

Tesla, which aside from its electric vehicle products manufactures residential solar panels, estimates the proposal could add between $50 and $80 per month to the electric bill of a home solar customer.

The proposal reflects some of the tensions between incentivizing the adoption of residential solar, a major priority of Newsom’s and other California Democrats who are hawkish on climate change, and the transition to green energy and managing the costs of those incentives.

Read rest at Examiner

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Comments 6

  1. Sonnyhill says:
    3 years ago

    This is a side show. If you’re debating the pro’s and con’s of green energy and its management, you’ve been sucked in.

  2. Ed Reid says:
    3 years ago

    Net metering should not have been permitted. It is and always has been grossly unfair. It allows solar customers to recover a portion of the utility’s fixed costs, as well as the variable costs of generation. It shifts utility fixed costs to non-solar customers.

    The undelivered message here is that solar is not competitive, even in CA, without both obvious and hidden subsidies, despite all of the hype to the contrary.

    • Rhee says:
      3 years ago

      hear! hear!

  3. Brian R Catt says:
    3 years ago

    The storage cost is what matters, because the solar panel subsidy farmers don’t pay for the cost of their intermittency, which is a 100’s of % on top of the generation cost. They would rather other, poorer, people paid for that.

  4. Spurwing Plover says:
    3 years ago

    Newsom is a Moron California is run by total idiots(Liberal Democrats)that keep getting reelected by the same Nit wits

  5. Donald Cross says:
    3 years ago

    Can’t win in California. Isn’t it time for California to break off and fall into the sea ?

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