California’s Public Utilities Commission has finally solidified a semi long-term plan for how it handles rooftop solar panels sending electricity back to the utilities, which means that investors, businesses, and the public can finally start acting with much less risk that their respective investments in solar, change in profit structure, and decision to install panels won’t get pulled out from under them via political or bureaucratic capriciousness. And because this decision is happening in California, with its gigantic market, the greater degree of certainty in a more solar-sourced energy sector will reverberate through the country.

The idea is that solar panel-equipped ratepayers will receive credits for their flow of electricity back into the grid, but that most will have to pay a one-time fee to their utilities upon installation and hookup. This money won’t be kept by the utilities, though, but will benefit low-income residents through subsidization of home energy-efficiency measures, such as solar panels! This means that, yes, some ratepayers who don’t have rooftop panels will have to pick up part of the cost, but that will only incentivize them to switch to solar as well. With greater certainty that demand for panels will increase with this decision, the green light is given for increasing investment in panel production, R&D, and installation and maintenance services, and so the cost of purchasing or renting panels is likely to continue to decrease.

All of this being said, I’m not sure what it means for maintenance of the grid. If investor-owned utilities are faced with the decision of reducing profit margins, or cutting corners to maintain their infrastructure (not sure how stringent the regulations are that govern this), I have to imagine they’ll lean towards the latter.

http://www.nytimes.com/2016/01/29/business/energy-environment/california-narrowly-votes-to-retain-system-that-pays-solar-users-for-excess-power.html?rref=collection%2Fsectioncollection%2Fscience&action=click&contentCollection=science&region=stream&module=stream_unit&version=latest&contentPlacement=3&pgtype=sectionfront&_r=0