SAN DIEGO, Calif. (KGTV) — If you’ve been considering solar panels for your home, you may want to act quickly.
Big changes are on the way after the California Public Utilities Commission (CPUC) voted unanimously on Thursday to reduce payments to homeowners for their excess power — by at least 75% compared to current rates.
“The utilities have been making arguments over the last few years that the retail rate that consumers get for going solar for the investment they make in solar isn’t fair. We don't agree with that,” said Mike Teresso, President of Baker Electric Home Energy, a solar company based in Escondido.
Teresso said if there’s one silver lining, it’s that the new rules will only apply to new solar customers and that people have four months before the policy changes.
“You’ve got the next four months to sign a contract and to file a net metering agreement with the utility to be grandfathered in under the current rules,” said Teresso.
The new regulations do provide nearly $1 billion in incentives to encourage more solar projects for low-income homes. But Teresso said that may not be enough when customers go to crunch the numbers.
“There will be a savings from going solar, but it won’t be anywhere as much as it is now. The return on your investment for going solar now ... within about four years it pays for itself. Under the new program, we’re looking at 9 to 12 years and probably a larger investment. So it’s really questionable how many homeowners are going to make that decision,” he said.
The overhaul comes as California has set ambitious goals to rely more heavily on renewable energy.
“We need more energy in the state. We’re talking about fully going to EV vehicles,” said Teresso.
The new plan will also incentivize customers to add battery storage to their systems to help with increased demand on California's grid.
With the expected spike in demand for solar over the next four months, Teresso says there could also be a spike in scams. He urges customers to be cautious when selecting a solar installer.
"What I would say to homeowners is stick with somebody here local who has been here a long time."
