12/04/2024
This article hits on the problem with centralized solar power in the form of utility-scale farms that keeps power in the hands of the big energy companies. Distributed solar is the answer, but the upfront cost has increased since PGE/SDGE/SCE effectively lobbied the public utilities commission to disincentive residential and commercial solar by greatly reducing the net-metering value of power being sent back to the grid starting April 2023.
"NEM 3.0" has made home batteries a necessity so solar owners can store excess power produced during the day, rather than selling it to the utility companies at about 20% of the market rate. These home and business owners then discharge their batteries when the sun goes down rather than pulling power from the utility. Unfortunately, batteries are not cheap, but because electric rates continue to skyrocket, as the LA Times article states, "customers of PG&E and Southern California Edison have risen by 51% over the past three years" the payback period on Bay Area home solar is back down to only about 7 years. That's what it was during NEM 2.0.
Beyond the financial savings in generating, storing and using your own power, solar and battery owners also have the added value of being able to power their homes through increasingly common grid failures and prescribed safety power shut offs in fire season.
California's solar energy oversupply is providing a boon to Arizona and other states while leaving residents without the price drops they're helping fund.
