California Could Drastically Cut Solar Incentives

Rooftop solar customers in California could face higher costs and reduced incentives if a proposed overhaul of the state's solar program is approved by the Public Utilities Commission.

2 minute read

December 23, 2021, 11:00 AM PST

By Diana Ionescu @aworkoffiction


If the California Public Utilities Commission approves an update to the state's solar incentive program, property owners could see a rise in costs for rooftop solar energy, among other changes, reports Sammy Roth. "Officials say the changes are needed to keep the lights on, prevent electricity rates from rising and encourage people to install batteries, while still growing the solar market. Solar executives say they would backfire and crater a thriving industry."

The changes, which would only apply to Edison, PG&E, and SDG&E customers, would "reduce payments to solar customers who send electricity to the power grid" through an overhaul of the process called net metering and add a monthly fee for homeowners that install solar, but also create a temporary "market transition credit" and fund programs to install clean energy in low-income communities and help homeowners buy batteries. Homes with existing solar panels would pay highly variable rates based on time of day.

Solar advocates and environmental groups are "slamming the proposed decision," calling it a huge setback for a badly needed and still nascent industry. But some also agree that the new model is more equitable and could help more low-income families invest in solar power.

Roth outlines the response from a variety of stakeholders including consumer advocates, the solar industry, utilities, home builders, and investors. While most agree on the need for more rooftop solar, they disagree on whether lowering existing incentives, even with transition assistance, will harm the rate of adoption of solar panels.

Thursday, December 16, 2021 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Adult holding hands of two children, all wearing winter coats, in crosswalk in New York City during holidays with trees decorated with lights in background.

Pedestrian Deaths Drop, Remain Twice as High as in 2009

Fatalities declined by 4 percent in 2024, but the U.S. is still nowhere close to ‘Vision Zero.’

1 hour ago - Streetsblog USA

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine