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State Regulators Consider Reducing Solar Panel Incentives

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Sacramento, CA — It might soon be less financially lucrative to have solar panels on rooftops in California.

The state implemented its “net energy metering” program in 1995 that allows solar customers to sell excess energy back to power companies at the retail rate, and in turn, allows for a big reduction in their energy bills.

However, industry groups and some consumer advocates argue that the rebates are too high and unfairly push up the energy prices for other customers.

The California Public Utilities Commission is planning to release proposed reforms later today, reducing incentives, that will later go through a public review process. California has an estimated 1.3 million residential solar installations. The state has also increased supply by pushing forward mandates for solar panels on new home construction.

The reforms come as companies like PG&E are indicating a need for additional revenue for upgrades and wildfire-related improvements.