California’s Solar Incentives: What Tomorrow’s Huge Change Means for You – CNET

A big change to how solar energy is measured in California goes into effect tomorrow, reframing how economical it may be for many homeowners to buy a system in the largest solar market in the US.

Previously, whatever excess energy a photovoltaic system generated was fed back to the grid and the homeowner received a near dollar-for-dollar credit on their electricity bill. This is called “net metering.”

Starting April 15, though, new solar rooftop setups will earn a much smaller credit for each excess kilowatt. About 75% smaller, according to the California Solar and Storage Association, or CALSSA, the state’s largest solar trade organization.

The intention is to get solar users to install home batteries that store energy for later use, CALSSA has said, rather than just sending it back to the grid. Homeowners could then decide when to return the energy, taking advantage of higher pricing at night and in winter to get a larger credit. 

But CALSSA Executive Director Bernadette Del Chiaro has warned the change to what’s called “net billing” will have a chilling effect on California’s booming solar market. She called the change “the largest cut to the value of solar in U.S. history.”

“For middle-class and working-class neighborhoods where solar is growing fastest, it puts clean energy further out of reach,” Del Chiaro said in a statement.

The change affects customers of California’s three largest investor-owned utilities: Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.

Combined they serve about three-quarters of the state’s population.
Read more: Solar Panel Buying Guide: Everything You Need to Know

Existing rooftop systems are grandfathered in, but unless you have a sales contract and a completed interconnection application filed with your utility company by April 14, you’ll be under the new net billing system.

Currently, a solar panel system pays for itself in about six years. Under the new rules, Del Chiaro told CBS 8, “we are kicking that to 10 years or further.”

Not everyone sees net billing as a bad thing, though. Suzanne Leta, head of policy and strategy at residential solar company SunPower, said customers who combine a rooftop setup with a battery will enjoy even more savings now.

Homeowners who don’t add a battery will still save, Leta told CNET, “it just won’t be as robust.”

While a battery may be the best value in the long run, she admitted “the upfront cost is not unsubstantial.”

A home battery backup system can run more than $15,000 before installation, according to CNET sister site SaveOnEnergy.

There are more than 1,100 companies installing solar panels in California. Since the regulations were approved by the California Public Utilities Commission in December, they’re all being flooded with applications.

SunPower started telling people on April 1 it couldn’t guarantee they would make the deadline. 

“We’ve really been focusing on educating consumers about the new program,” Leta said. “This is still the best time to go solar. Electricity rates are only going to go up and we want to make sure people don’t just give up now.”