Two years ago, a controversial solar net-metering policy that limited potential energy savings went into effect in the Golden State. Now, residents are celebrating after the California Supreme Court sent the regulation to an appeals court for reexamination.
As detailed by PV Magazine, the California Public Utilities Commission adopted a net-metering policy, known as NEM 3.0, that slashed the export rate credited to rooftop solar owners by 80%, effectively raising the average solar customer's bill by $63 each month.
While installing solar panels is a proven way to save money on energy bills and boost local air quality by reducing reliance on polluting fuels such as gas, oil, and coal, NEM 3.0 cut how much value homeowners recouped on their investments.
Nonetheless, EnergySage is one company whose free tools are connecting consumers in California and around the country with quick, easy-to-compare quotes to help them discover the best deals for their homes — and score energy savings of up to $3,000 annually.
After NEM 3.0 went into effect, demand for solar panels in the Golden State plummeted and numerous providers filed for bankruptcy. This led to the elimination of around 17,000 solar jobs, per PV Magazine.
The Center for Biological Diversity, The Protect Our Communities Foundation, and the Environmental Working Group weren't going down without a fight, though.
The trio filed a lawsuit against the CPUC, alleging that its ratemaking decision violated California's climate laws and failed to properly assess the benefits of small-scale rooftop solar projects.
The complaint also said CPUC ran afoul of a 1998 directive to limit deference to regulators and argued that its ratemaking policy was of a particular burden to disadvantaged communities, who already put high percentages of their incomes toward rising electricity bills.
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Reddit users lauded the state Supreme Court's decision to open up NEM 3.0 to legal review.
"Only in California could a giant monopoly corporation succeed with the argument that 'rich people solar' was discriminating against the poor people of California," one commenter said. "... It will be shocking if a regular court of law lets this travesty continue!"
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The upfront cost 💰 "That is good news! … NEM 3.0 is [designed] to kill all the new solar projects," another wrote. "The most obvious was getting about 3 cents/kwh of export credit and get charged @ about 29 cents. That is just ridiculous, equivalent to daylight robbery!"
As the case makes its way through the courts, you can explore your solar options (regardless of where you live) through EnergySage, which saves the average homeowner around $10,000 on solar installation costs and can help you maximize your solar benefits with other eco- and money-friendly upgrades, such as a heat pump.
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EnergySage's handy mapping tool can also help you discover which state-specific stackable incentives are available in your area before federal solar tax credits expire Dec. 31.
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