Solar Panels Savings to Decrease by 33% in CA

NEW -> Contingent Buyer Assistance Program
someguy

someguy

Active member
This is old news, but it doesn't seem discussed much when talking about the change in electricity billing starting around 2025. In short, SCE will drop the electricity rate by about 33% and impose a fixed fee based on household income (https://ktla.com/news/local-news/fi...=The new fixed rate,a month in PG&E territory.)

So whatever savings you've calculated when purchasing solar panels (whether by choice or mandate), that savings is going down roughly 33%. Cool stuff.
 
I have a feeling this wouldn’t pass. In addition, is there any law that says we need to disclose our income? If not, people can just lie about it. FCB have $0 income and will not report it. So a 5m household will pay the lowest tiered rate? Makes no sense.
 
The utilities understand the PUC, State andvoting public. Remember, they previously sold the voters a 10% reduction to their electric bills.

Only natural they latch on to the economic success is only gained by exploitation and colonialism mindset.
 
sleepy5136 said:
I have a feeling this wouldn’t pass. In addition, is there any law that says we need to disclose our income? If not, people can just lie about it. FCB have $0 income and will not report it. So a 5m household will pay the lowest tiered rate? Makes no sense.
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I wish the requirement was still up for debate, but it's already decided. The only thing we're waiting on is for the utility commission to work out the details with the utility companies.
 
calmatters.org

Are major changes coming to your electric bill? 5 things to know

Will fixed electric charges save cash-strapped Californians money? Utilities say it will depend on their household income.
calmatters.org calmatters.org

This article had more detail, very puzzled by this proposal...

Edit: At least it won't start in 2024 "Though the state set a 2024 deadline for the commission to establish fixed monthly fees based on customers’ incomes, an administrative judge in the proceedings wrote in a recent filing that the earliest the change could be implemented is the end of 2026. "
 
Are people enrolled in net metering exempted/grandfathered in any way? Is this not construed as a change to the NEM agreement?
 
daedalus said:
Are people enrolled in net metering exempted/grandfathered in any way? Is this not construed as a change to the NEM agreement?
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NEM has nothing to do with the fixed rate, though. NEM only allows you to sell back to the utility company at certain rates. NEM 1 people were able to sell back at much higher rates and NEM 3 people are selling back for pennies. We're all paying a fixed rate now, whether or not you have solar. The change now is this so-called fixed rate becomes adjustable rate based on income.
 
CalBears96 said:
NEM has nothing to do with the fixed rate, though. NEM only allows you to sell back to the utility company at certain rates. NEM 1 people were able to sell back at much higher rates and NEM 3 people are selling back for pennies. We're all paying a fixed rate now, whether or not you have solar. The change now is this so-called fixed rate becomes adjustable rate based on income.
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I have a gut feeling this will get challenged somehow... It's definitely going under the radar right now as I haven't seen it on the news or maybe I missed it.

If it doesn't get challenged, I'll assume a lot of fraud will occur. I would like to see how they verify incomes in each household as unless you're using the individuals tax return, they have no way of knowing the actual incomes of each household. Joe Schmoe can end up being in the lowest tiered rate living in a multi million dollar house. No one will also give their actual income information to a power company.
 
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Watch - they are going to miscalculate the fixed costs or the quantity of earners per category and they will fix the shortfall by increasing the fee of the highest income bracket.
 
sleepy5136 said:
I have a gut feeling this will get challenged somehow... It's definitely going under the radar right now as I haven't seen it on the news or maybe I missed it.

If it doesn't get challenged, I'll assume a lot of fraud will occur. I would like to see how they verify incomes in each household as unless you're using the individuals tax return, they have no way of knowing the actual incomes of each household. Joe Schmoe can end up being in the lowest tiered rate living in a multi million dollar house. No one will also give their actual income information to a power company.
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I imagine they'll let people default into the highest tier unless they prove their income is lower with a copy of their most recently filed tax return. Probably administered by a third party until they can plug straight into the FTB or IRS "for our convienence"
qwerty said:
Watch - they are going to miscalculate the fixed costs or the quantity of earners per category and they will fix the shortfall by increasing the fee of the highest income bracket.
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Definitely wouldn't surprise me either. There's only one play in the CA playbook, which is to go after the high earners.

This new pricing arrangement incentivizes people to increase their electricity usage by cutting the variable price of electricity at a time when almost half of CA's generation comes from fossil fuels. Queue up the meme of having to decide between "equity" and "reducing CO2 emissions". Looks like they're choosing "equity" this time.
 
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nosuchreality said:
Only natural they latch on to the economic success is only gained by exploitation and colonialism mindset.
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I feel like this is the new word du jour that gets injected into every political discussion now that diversity, equity, and inclusion has fallen out of favor.
 
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