By Alex Formuzis, EWG
CALIFORNIA – During a press briefing hosted by the Environmental Working Group on Wednesday, clean energy experts and consumer advocates presented new research that debunks claims by California’s monopoly utilities and regulators blaming rooftop solar and energy efficiency programs for the state’s skyrocketing electricity bills.
The research points to excessive utility spending and profits – not solar energy – as the real drivers of rising electricity costs burdening millions of California residents.
The analysis, released by the California Solar and Storage Association, or CALSSA, and energy economics firm M.Cubed, shows that while California’s electricity consumption has remained stable for the past two decades, utility spending on grid infrastructure has surged by as much as 260 percent over the past eight to 12 years. This overspending is directly linked to rising rates, with utilities guaranteed a 10 percent profit on every dollar they spend on infrastructure, inflating costs for consumers.
Key findings of the report include:
- Rooftop solar users are projected to save all energy consumers $1.5 billion in 2024, due to reduced grid demand.
- Excessive utility spending is the primary driver of rate hikes, with no other factor contributing to rising costs on such a scale.
- Rooftop solar helps relieve grid pressure and reduces costs for all ratepayers. It will be crucial to California’s transition to electric vehicles and building electrification.
Despite these findings, utilities continue to target rooftop solar, wrongly blaming it for higher rates. Richard McCann, partner at M.Cubed Consulting and one of the report’s authors, said, “The data is clear – regulators should embrace rooftop solar to help control energy rates.”
Former California Public Utilities Commission President Loretta Lynch, who participated in the briefing, called for more accountability from regulators.
“The continued scapegoating of solar energy to distract from utility overspending is not only misleading but harmful to California consumers,” said Lynch. “We need leaders who are committed to holding utilities accountable for their reckless spending and putting the interests of Californians first.”
The report also highlights the harmful impact of recent policy changes, including new solar credit rates, prohibitions on multi-meter properties, and high fixed charges, all of which have set back solar adoption by a decade. These changes have cost California over 17,000 well-paid clean energy jobs and put solar increasingly out of reach for low- and moderate-income households.
Brad Heavner, policy director and incoming executive director at CALSSA, who co-authored the analysis, added, “Utilities are using clean energy as a scapegoat to distract from their excessive spending. This isn’t about transitioning to clean energy – it’s about Wall Street–owned utilities putting profits over consumers.”
Jamie Court, president of Consumer Watchdog, said, “California consumers are paying the price for utilities’ unchecked greed. It’s time for the state to act and stop these practices, ensuring that rooftop solar and other clean energy solutions are allowed to thrive.”
Recommendations for addressing the crisis suggest regulators:
- Protecting existing solar investments and net metering for consumers.
- Rejecting potential proposals for solar-specific taxes or fees.
- Streamlining solar permitting and interconnection processes.
- Launching a Million Solar Batteries initiative.
- Reforming utility profit incentives that discourage solar adoption.
- Strengthening oversight of utility spending.
California’s clean energy leaders are calling for immediate action to curb utility spending, restore affordable energy, and protect the state’s clean energy progress for all residents.
For more information, download the full report: Rooftop Solar Reduces Costs for All Ratepayers.
The analysis has the backing of several top clean energy and economics experts, who are available to speak with reporters.
The virtual press briefing hosted by EWG was recorded and can be viewed here.
