California solar customers face potential penalty under new CPUC proposal

SACRAMENTO, Calif. — Governor Gavin Newsom has directed the California Public Utilities Commission (CPUC) to find ways to reduce electricity costs statewide.

In response, the CPUC has proposed a controversial measure that could penalize homeowners who have invested in solar power.

The 35-page report from the CPUC suggests reducing compensation for legacy solar customers—those who installed solar systems before the new proposal.

The report claims these customers are not paying their fair share of the fixed costs associated with the distribution and transmission of power, leading regular energy users to subsidize these costs by as much as $400 extra per year.

Solar Energy Industries Association noted that California has 14.5 million homes with solar panels.

The proposal has sparked criticism from solar advocates. “I personally think that this is a blind side,” said Pete Hafen with Solar Negotiators.

“Customers aren’t aware… customers were told when they purchased this that it was going to be a certain way and that they were going to have certain benefits over a certain period of time.”

Hafen, expressed his disapproval of the CPUC’s conclusions. “They want to push green energy right? We’re one of the leaders in the entire United States for green energy so I don’t know why you’re gonna go pick on the people

that are already invested into it,” said Hafen.

Hafen warned that if the CPUC’s recommendation is approved, savings from solar would be reduced dramatically.

He added that Solar Negotiators will fight to ensure solar users do not have to shoulder the cost to bring electricity rates down.

If you would like to read the California Public Utilities Commission report here’s the link: https://www.cpuc.ca.gov/-/media/cpuc-website/industries-and-topics/reports/cpuc-response-to-executive-order-n-5-24.pdf