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Health & Fitness

A Win-Win for Net Metering and Rooftop Solar

Last week, Governor Jerry Brown delivered a rousing keynote address at the Intersolar North America 2013 Conference in San Francisco. During his remarks, he made a strong commitment to solar growth: "We have 130,000 solar installations (in Calfornia) — we're going to get several hundreds of thousands more. And as governor of California, I guarantee we're going to get there because I am going to move aside all the obstacles, whoever and whatever they are. Get out of the way, the sun is shining brightly in the state of California!"

The biggest obstacle to rooftop solar in California right now is the investor-owned utility monopolies and their legislative offensive against net energy metering. Net metering is a policy that gives consumers full retail credit for the power their solar systems deliver back to the grid. A recent study by Crossborder Energy found that net metering provides more than $92 million in annual benefits to ratepayers of California's three investor-owned utilities – a.k.a. Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison. But it also threatens to cut into the profit margins to which these “IOUs” have grown accustomed. And they won’t go quietly into the night.

As noted in a recent Wall Street Journal story:

A recent report distributed by the Edison Electric Institute, the industry's main trade group, said the growth of small-scale solar systems represents the "largest near-term threat" to the industry, and recommended that utilities work to change net-metering policies like the ones under debate in Idaho and Louisiana.

But the same story points out that, despite the best efforts of the IOUs, rooftop solar and net metering scored resounding victories recently in both Louisiana and Idaho that bode well for the future of energy innovation in California — and nationwide. First, the Louisiana Public Service Commission voted 3-2 to maintain the rates that big utilities pay to solar panel owners for the excess electricity they deliver back to the grid. The Idaho Public Utilities Commission followed quickly on the heels of their Louisiana counterparts in rejecting a proposal from Idaho Power Company to raise monthly fees paid by homeowners and small businesses who install solar panels.

The Journal’s coverage of these events shows that this debate has entered the mainstream of the national consciousness. And as a leader and hub for solar growth, California will play a huge role in the net metering discussion. As indicated by Governor Brown’s remarks, he won’t back down in leading California’s solar charge. But he can’t fight this battle alone. The question becomes: will other state policymakers step up to help the Governor lead our state into a sustainable energy future?

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