Taxation Without Representation: How Utilities Want to Penalize Solar Homeowners

The CPUC released a recommendation to change Net Energy Metering (NEM) several months ago, and has since backtracked. There are some good concepts being looked at, but we and many others feel they are being addressed improperly. No news is good news – for now – but we need to make sure the people of California understand what is at stake here.

We acknowledge that NEM must change. Balancing the needs of everyone is important, but ham-fisted attacks from the utilities on solar rights must end. Utility companies rely on an outdated model – "the way it's always been" – and we can't let them block progress to achieve "the way it should be". The time for brilliant forward-thinking innovation is now, and we have to work together to protect consumers and the earth, not the profits of (already plenty wealthy) utility shareholders.

What is Net Energy Metering?

Net Energy Metering (NEM) is a billing arrangement that allows residential and commercial customers who generate their own electricity from solar power to feed electricity they do not use back into the grid. In California, NEM has been instrumental in driving solar adoption by providing fair compensation to homeowners for the excess energy their systems produce.

The Proposed Changes

The utility companies have proposed changes that would significantly reduce the value of solar energy that homeowners send back to the grid. These changes would effectively penalize homeowners who have invested in solar systems, reducing their savings and extending the payback period for their investments.

Why This Matters

Solar energy is critical to California's clean energy future. Policies that discourage solar adoption work against the state's climate goals and harm consumers who are trying to do the right thing for the environment and their wallets.

What You Can Do

Stay informed about proposed changes to NEM and other solar policies. Contact your representatives to voice your support for fair solar policies. Consider solar battery storage to maximize the value of your solar investment regardless of future policy changes.

Conclusion

The fight for fair solar policies is ongoing. At ESP, we're committed to advocating for our customers and for policies that support clean energy adoption in California. Contact us today to learn more about how you can go solar and protect yourself from rising utility rates.