California will sharply reduce the incentive that encouraged more than a million homeowners and businesses to install rooftop solar panels and cemented the Golden State as a green energy pioneer.
State regulators unanimously voted Thursday to cut the compensation homeowners get for their systems’ excess electricity by about 75%. The existing program pays solar customers the full retail electricity price for that excess power, a perk that some state officials say disproportionately hurts low-income residents who are less likely to own solar panels. The change won’t go into effect until April and won’t impact existing rooftop solar customers.
“This decision is more equitable than ...