The rational argument is that fewer paying customers translates into the same overhead to maintain a grid being paid for through higher and higher rates for the fewer and fewer remaining customers.
I’m OK with that argument. Anyone having a grid connection that can be used to supply power under any circumstances should be required to pay their fair share of grid maintainance whether they actually used that grid connection or not.
This ‘issue’ has only arisen because of the utilities decision to ‘hide’ grid upkeep costs within ‘simple’ per/kWh billing structures.
The rate structures to support Community Choice Aggregation (CCA) are a good first step towards addressing this structural defect, with separate charges for energy and distribution (NBCs).
This means you will pay your fair share for grid maintenance on every kWh you import, regardless of how much you export.
But while this will motivate solar customers to minimize / eliminate import by adding storage, it will not guarantee they pay anything for grid maintenance if they manage to avoid any import.
Hence the ‘Minimum Distribution Charge’ which impacted all (solar and non-solar) customers equally and guaranteed they pitched in a minimum monthly amount towards grid maintainance cost (if no actual energy was purchased).
But apparently that was not enough and so now solar customers only are going to be hit with a per-kW-of-solar-per-month solar tax.
My biggest issue with that is the fact that it is not being applied to all customers equally. And my second biggest issue is that two customers who have built solar systems that totally avoid any import annually will be ‘taxed’ at different levels if the potential power of their solar installs is different even though their demands on and use of the grid is identical. This is the ‘being taxed on the value of carrots you grow in your backyard’ argument.
Basing a monthly minimum distribution charge on the maximum Watts of grid power that can be imported would be more sensible (with a sensible minimum so solar customers don’t have an incentive to reduce their mainbreakers below average levels).
This would impact solar and non-solar customers equally, would assure that all hookups pay the same minimum monthly fee towards grid maintenance except those requiring high-than-average grid-power availability.
But on another level, I don’t have a problem with whatever new rules they decide to institute for new solar customers.
If the costs are too high and adding solar becomes a clear money-losing proposition, the residential solar industry will collapse and so be it.
The argument that the same subsidies being given to promote rooftop residential solar installations would be much more efficiently spent subsidizing solar farms is rational and economic.
But my biggest issue is the CPUC’s decision that 20-years of grandfathering was ‘too generous’ and will be summarily reduced to 15 years.
People took out loans being payed back over 20 years as a cost-adder to their property taxes to ‘prepurchase’ the next 20-years-worth of electricity. The savings on annual electricity bills offsets the annual cost adder on property taxes and after 20 years, the loan has been paid off and the solar customer is back to break-even with a paid-for 20-year-old solar system that still may have some life left in it.
Over one million California NEM1.0 and NEM2.0 customers bought into that fairy tale and put solar systems on their roofs when it was outrageously expensive to do so.
And now they are only going to get 3/4 of those loans paid off and they will be left paying higher property taxes for the last 5 years without enough electrical energy savings to offset that cost adder.
That’s bait and switch, pure and simple.