California Scaling Back Solar Subsidies This Week
Sacramento, CA — California will be reducing its subsidy program for new solar panel owners later this week.
The policy change related to “net metering” has been years in the making, and it will reduce the amount of money that panel owners receive for supplying energy to the power grid. The perk has been successful in boosting solar energy in the state, but some have argued that it is too high, and unfair to non-solar customers.
The change was approved by the California Public Utilities Commission late last year and will take effect on April 15. It does not impact existing solar users, only new customers. It was opposed by solar industry groups who argued that it will cut subsidies by as much as 75%.
On the other hand, there are also new incentives added to encourage homeowners to buy batteries that can store solar energy onsite, which state officials say will improve power reliability during peak usage.
According to state data, an estimated 1.6 million California homes have solar power.
