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© Reuters. FILE PHOTO: Solar panels are seen on rooftops amid the coronavirus disease (COVID-19) outbreak, in Santa Clarita, near Los Angeles, California, U.S., June 18, 2020. REUTERS/Lucy Nicholson/File Photo
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By Nichola Groom
(Reuters) – California on Monday proposed sweeping changes to a rooftop solar policy that has underpinned the industry’s dramatic growth, saying the subsidy needed to evolve to encourage adoption of battery storage and relieve strain on the grid.
If adopted, the changes would represent the state’s most significant reform of so-called net metering, which has allowed solar owners since the 1990s to sell their excess electricity into the grid at or near the retail rate.
In its proposed decision, the California Public Utilities Commission said its review of the policy had found that it is “not cost-effective; and disproportionately harms low-income ratepayers” who are less likely to have solar.
Under the proposal, the rate for Californians with new solar installations would decline to reflect more accurately the value those installations offer to the grid.
The regulator also proposed imposing a monthly utility bill charge of $8 per kilowatt for home solar owners to cover the cost of maintaining the grid. The average size of a U.S. residential solar system is 5kW.
Source: Investing.com