If you thought the fight over rooftop solar in California was over, think again.
The California Public Utilities Commission (CPUC) just released its long-hidden report on how to lower energy costs, and it’s no surprise that the report is a thinly veiled attack on solar customers all across California.
After months of keeping it under wraps, Governor Gavin Newsom’s administration was forced to make it public. Inside is a collection of misguided proposals that favor utilities at the expense of everyday Californians.
Behind this report are the three investor-owned utilities—Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). They control the CPUC, which is an organization that’s supposed to represent ratepayers, but often acts as the utilities’ personal mouthpiece.
The “Cost Shift” Myth Strikes Again
The CPUC’s report claims that non-solar customers are paying an extra $8.5 billion per year because of people who installed rooftop solar. That’s 21-27% of their bills, according to the CPUC’s numbers.
But a new study from M.Cubed Consulting proves the exact opposite.
Instead of raising costs, rooftop solar saved all California customers $2.3 billion in 2024 alone, with $1.5 billion in savings specifically for non-solar customers.
This is because:
- Rooftop solar reduces peak demand, lowering electricity costs for everyone.
- It eliminates the need for expensive grid expansion projects that utilities love to charge customers for.
- It lowers the amount of energy utilities have to purchase, which means lower rates for all.
But instead of admitting that solar helps lower costs, the utilities continue to repeat the cost shift tactic to axe rooftop solar and protect their monopoly. Rooftop solar drives down electricity costs across California by cutting peak demand and slashing the utilities’ spending on energy purchases and grid expansions.
When utilities spend less on buying electricity and expanding the grid, they can’t justify hiking up your rates. Since they spread those costs over years, every dollar saved on unnecessary infrastructure means lower bills for everyone in the long run.
Destroying Net Metering—By Tying it to Your Name, Not Your Home
The CPUC is also proposing that Net Metering agreements should follow the homeowner, not the home.
This means:
- If you sell your home, the new owner wouldn’t inherit your solar benefits.
- This would devalue solar-equipped homes and discourage new buyers from going solar.
- It’s a direct attack on long-term solar savings, designed to make rooftop solar less attractive.
The utilities are bleeding money and see rooftop solar, battery storage, and microgrids as a threat to their business model. Instead of innovating, they’re trying to strangle the competition.
Slashing Solar Export Rates—And Making Taxpayers Cover The Difference
Under Net Energy Metering (NEM), solar customers sell excess electricity back to the grid.
Once upon a time, utilities paid fair rates—around 18-22 cents per kilowatt-hour (kWh). Now they only pay 5 cents per kWh.
The CPUC’s new idea is to force the state to find “alternative funding” just to cover those five cents.
In other words:
- Utilities wouldn’t have to pay for the clean energy they get from solar customers.
- Taxpayers would be stuck with the bill.
The utilities get to profit off solar energy generated by homeowners—without paying a dime for it.
The Real Reason Behind This Attack on Solar
The utilities are losing their grip on the energy market. Rooftop solar and battery storage are breaking their monopoly by allowing people to generate their own power.
Their game plan is to:
- Make solar more expensive.
- Strip away financial benefits.
- Trap customers in an outdated, overpriced utility model.
What Can You Do?
These proposals by the CPUC are only recommendations for now, not finalized policies. The net metering contracts solar customers currently have are legally binding, meaning the CPUC can’t rip them up overnight. But we need to keep the pressure on.
- If you already have solar—add a battery. The more energy you store, the less reliant you are on utilities.
- If you don’t have solar yet—go solar now. The longer you wait, the more the utilities will stack the rules against you.
- Speak up. Write to state representatives. Support pro-solar policies.
The utilities are trying everything they can to kill rooftop solar. But they’re not winning—because Californians aren’t falling for it.
Let’s cut the cord and take control of our energy future!
