Rising costs complicate California's rooftop solar, onsite battery future

AI generated summary

California is facing challenges in its ambitious goal to decarbonize its economy by mid-century, particularly due to rising electricity rates and the ongoing debate over the state's rooftop solar program, known as net energy metering. The California Public Utilities Commission (CPUC) is expected to release a revised proposal after a previous version faced backlash for significantly reducing payments for solar energy exports and imposing new fees. Stakeholders, including solar companies and environmental groups, are divided on the proposed reforms, with some advocating for more moderate adjustments to balance costs and benefits.

As net metering payments are anticipated to decrease, solar and energy storage companies are exploring new business models, such as Sunnova's proposal to operate as a micro-utility for solar-powered communities. The current system, which disproportionately benefits wealthier households with solar installations, is seen as regressive, prompting calls for reforms that ensure affordability and equity in energy access. Despite the challenges, companies are innovating to adapt to the changing landscape, focusing on virtual power plants and other technologies that could enhance grid reliability and efficiency.