Rooftop solar shake-up rattles California

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Dec 16, 2022 View in browser   By Arianna Skibell Presented by Chevron Rooftop solar panels are seen in Los Angeles. | Mario Tama/Getty Images California is overhauling its booming rooftop solar industry, and advocates are mad. Regulators unanimously approved a rule that will reduce the rates that utilities pay to new rooftop solar customers who generate more electricity than they consume, writes POLITICO's E&E News reporter Jason Plautz. The change could drive up the cost of rooftop installations, undercutting demand for solar panels. California first adopted so-called net metering incentives more than 20 years ago, helping the state become a leader in rooftop solar, with approximately 1.5 million home installations. The shift could be a harbinger of similar policy decisions across the nation as regulators in many states, which often look to California for guidance, race to deploy clean energy to the grid. Revisions to rooftop solar incentives have long spurred battles between solar advocates, who want to see more panels on rooftops, and utilities, which fear that net metering will undermine their business model. But members of the California Public Utilities Commission said the updated rules are designed to adapt the solar market to the changing grid. The new rules aim to drive homeowners to install battery storage systems with their solar panels. That would shift some of the use of solar-generated power to the evening hours, when demand rises but generation stops because it's night. Utilities, which supported even steeper rate cuts, argue the new rule will also end a subsidy to those wealthy enough to own solar panels. But critics say the new rules could blunt a burgeoning clean energy technology by axing a key driver for new installations. Sean Gallagher, vice president of state and regulatory affairs for the Solar Energy Industries Association, told Jason that "the failure to adopt a more gradual transition to net billing risks putting solar out of reach for millions of residents across the state." The role of rooftop solar, which supplies about 10 percent of the state's energy, is but one policy battle the state is facing as it seeks to implement a sweeping plan to achieve a zero-carbon economy by 2045. California formally approved the target Thursday.   It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Catherine Morehouse breaks down why Federal Energy Regulatory Commission Chair Richard Glick is leaving and how it affects the Biden administration's climate goals. On the Hill The Senate on Thursday rejected a permitting amendment to the fiscal 2023 National Defense Authorization Act. | U.S. Senate. The Senate's rejection of Sen. Joe Manchin's attempt to overhaul environmental rules for energy projects ends a monthslong effort from the West Virginia Democrat, writes Nick Sobczyk. The vote on Thursday underscored disagreements between Democrats and Republicans about how the federal government should handle the major electric transmission projects that will be needed to add scores of new wind and solar projects to the grid. It could be a defining political issue for the energy transition over the next several years.   A message from Chevron: At Chevron, we're working to help progress the energy sector forward. Subscribe to The Human Energy Newsletter to receive our recently published methane report, energy news, powerful insights, and the latest on our efforts to bring affordable, reliable, ever-cleaner energy to the world.   Power Centers Oil rigs extract petroleum near Culver City, Calif. | David McNew/Getty Images Oil reserves The Biden administration is planning to begin refilling the Strategic Petroleum Reserve, a senior administration official said Friday, writes Ben Lefebvre. The move concludes the massive supply releases that the White House ordered to tame the sharp price spikes earlier this year. Stateside climate flex In Minnesota and Michigan, new Democratic leadership plans to act aggressively on climate change after years of frustration with Republican-led opposition, writes Adam Aton. Their success or failure will have deep implications at home, where environmental justice concerns have reached a boiling point, as well as nationwide as other states look to them for lessons. in other news A humpback whale is seen in Sydney. | Cameron Spencer/Getty Images Whale, how about that: Whales can help us fight climate change. Here's how. Make it rain: New clean energy investments have topped $40 billion since the Inflation Reduction Act passed, according to a report.   A message from Chevron:   Subscriber Zone A showcase of some of our best subscriber content. An airline worker guides a passenger plane at Dulles International Airport in June. | Anna Moneymaker/Getty Images Production of cleaner jet fuel is showing signs of a boom in the United States and around the world, propelling what could be the best tool for reducing aviation emissions. A Massachusetts-based manufacturer backed by Microsoft co-founder Bill Gates said it would build the nation's largest factory for a key component of solar panels. Virginia regulators approved a measure intended to help shield ratepayers from potential cost hikes in the construction of the state's first offshore wind project. That's it for today, folks. Thanks for reading, and have a great weekend!   A message from Chevron: From news and updates on Chevron's renewable fuel projects to the latest energy reports, The Human Energy Newsletter will keep you better informed on the entire energy sector. Subscribe to the newsletter and be the first to receive news and updates directly to your inbox. Subscribe now.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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