January 26, 2022 - Washington - Senator Dianne Feinstein (D-Calif.) on Tuesday urged the new president of the California Public Utilities Commission, Alice Reynolds, to consider changes to the commission’s proposed solar energy policy. Senator Feinstein offered recommendations to ensure the policy will incentivize adoption of rooftop solar and storage while keeping rates reasonable. 

“California’s clean energy production and efforts to electrify transportation and buildings lead the nation. Our leadership is the type of aggressive approach we must take to mitigate the worst effects of climate change. We must continue to ensure that transitioning to clean energy will benefit communities that have often been neglected, most importantly low-income neighborhoods, communities of color, and high pollution areas, by keeping rates reasonable,” Senator Feinstein wrote. 

She continued, “However, the Commission’s proposal that may reduce the pace of adoption of rooftop solar and storage is concerning and may impact the state’s conservation goals as we address climate change.” 

Senator Feinstein offered three recommendations to help the CPUC make solar energy more affordable and widespread: 

1) Structure monthly grid participation and export fees to properly reflect the benefits of distributed generation and promote wide adoption of rooftop solar. 

2) Incentivize battery storage by reducing the payback period for individuals who invest in this technology and provide energy services to the electric grid. 

3) Ensure the land use of proposed developments in the utilities community distributed energy applications align with California’s 30x30 land and water conservation commitment.

Full text of the letter is available here and below:

January 25, 2022

Alice Reynolds
President
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102 

Dear President Reynolds,

Congratulations on your appointment to the California Public Utilities Commission (CPUC), and please find my perspective and recommendations regarding the recent proposed decision on net energy metering. 

California’s clean energy production and efforts to electrify transportation and buildings lead the nation.  Our leadership is the type of aggressive approach we must take to mitigate the worst effects of climate change.  We must continue to ensure that transitioning to clean energy will benefit communities that have often been neglected, most importantly low-income neighborhoods, communities of color, and high pollution areas, by keeping rates reasonable.  The Commission’s steadfast attention to these important issues is appreciated. 

However, the Commission’s proposal that may reduce the pace of adoption of rooftop solar and storage is concerning and may impact the state’s conservation goals as we address climate change.  Therefore, as the Commission updates its rooftop solar tariffs, please consider three changes to the December proposal:

• First, the monthly grid participation charge and export rates in the proposal should be reconsidered to spur adoption of this technology.  The fee structure should properly reflect the benefits of distributed generation and promote wide adoption of rooftop solar.
• Second, incentivizing battery storage is critical to address reliability issues during the early evening hours and bring longer-duration storage to market.  Individuals investing in this technology should benefit from shorter payback periods commensurate with the benefits to the electric grid that batteries provide.
• Finally, as the Commission reviews applications for community distributed energy this coming April, the CPUC should ensure the land use of proposed developments align with California’s 30x30 land and water conservation commitment.  As a longtime advocate to protect California’s ocean, deserts, and lakes, any changes to the net metering process can and must support and strengthen our stewardship of the environment. 

Thank you for your consideration of my recommendations, which will help the Commission achieve its clean energy and affordability goals.  Consistent with these objectives, I will continue to support large federal investments in clean energy, including through refundable tax credits for rooftop solar and research and development for next generation technologies through energy appropriations. 

Sincerely,
Source: Senator Dianne Feinstein