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Commissioner Rejects SDG&E’s Proposed Solar Tax
The forecast is blue skies and sunny today and tomorrow for residential solar energy!
State regulators on Wednesday turned down an SDG&E proposal to charge residential solar customers for their use of the distribution grid. SDG&E argued that solar users avoid paying their fair share for the maintenance of the electrical infrastructure. The utility proposed to levy a separate charge to solar energy customers based on the ebb and flow of their electricity to the grid. Referred to as a Network Use Charge (NUC), the surcharge was targeted directly at residential solar-electricity generating customers. It was estimated to add approximately $20 to $30 to monthly bills of solar homeowners. The charge would have had a limited impact on traditional utility customers.
Commissioner Mark Ferron of the California Public Utilities Commission (CPUC) said the NUC violated key elements of state law. His ruling was in response to a motion filed last month by Michael Shames, executive director of the Utility Consumers’ Action Network (UCAN). Shames also pointed out the fact that the charge proposed by SDG&E ran counter to the legislature’s intent to subsidize and promote California solar power. SDG&E will need to submit a revised rate design that does not include the NUC.
This ruling is truly a key victory for residential and commercial solar producers. You need not worry about SDG&E imposing new fees any time soon. The uncertainty the local solar industry has experienced over the last four months is essentially over. If you are already a solar homeowner, enjoy the relief of knowing your investment is protected and intact! If you had been planning on looking into solar, there’s no better time to get on board the Sol Train!
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