Last December, the California Public Utilities Commission (CPUC) was seeking to cut economic incentives for household photovoltaics in the region, which was opposed by many parties and sued by several organizations in court. Despite such fierce opposition, the CPUC, the three largest local power companies, was named as a defendant, and California reiterated its anti-photovoltaic decision at a recent appeals court hearing.
It all started when the CPUC approved a net energy policy (NEM 3.0) for one year, which cut the on-grid subsidy for rooftop solar power by 75%, and the price of electricity dropped sharply from $0.3 to $0.08.
But this was not the case before the amendment, which was aimed at encouraging the diversification of California's energy resources, stimulating California's economic growth and encouraging private investment in renewable energy. At the same time, the bill also introduced a series of measures to help disadvantaged communities, such as supporting the construction of virtual power plants, setting up photovoltaic credit to help the middle class and working class install household photovoltaic at a lower threshold to achieve access to renewable electricity.
It is worth noting that in the past three years, electricity prices in California have risen sharply, and household photovoltaics have become a source of low-cost electricity for many households.
Under the stimulus of the bill, California has become the first continent of household photovoltaic in the United States. However, this position is in danger due to the implementation of NEM3.0, and the industry has experienced severe pain.
Data show that the number of new household installations in California has dropped by 80%. The California Solar Energy and Storage Association (CALSSA) report also shows that nearly 17,000 rooftop solar jobs, or 22% of the workforce, have been lost this year.
Solar Insure told the media that the financial stability of rooftop solar companies currently operating in California is in question. Its data shows that 75% of solar installers are now in the "high-risk" category following the CPUC's decision to implement NEM 3.0.
"We have recently seen a wave of solar installer bankruptcies and believe there will be another wave in the first quarter of 2024." Solar Insure CEO Ara Agopian warns. Opponents of the campaign to
save California's home photovoltaic industry have been outgunned.
According to media reports, at a time when small photovoltaic companies are in crisis because of the bill, large energy and power companies led by Pacific Gas and Electric Company (PG & E) and Sempra, the parent company of San Diego Gas and Electric Company, are making a lot of money.
At present, many installers have abandoned the grid connection and turned surplus electricity to power their homes. In a recent analysis of the U.S. photovoltaic market
, Societe Generale Securities pointed out that under the influence of NEM3.0, the average price of electricity on the grid in California has declined, the price difference between peak and valley is large, and household photovoltaic storage has been stimulated. The impact of the policy will affect the development of the national household photovoltaic industry in the short term.
In addition, California hopes to replace 100% of fossil fuels by 2045, but to achieve this goal, the state needs to triple the rate of solar expansion, which may include rooftop solar and large-scale solar panel projects, which may not be achieved on time at present.
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