The Rooftop Solar Dilemma: Rising Electricity Rates and the Diminishing Value of Rooftop Solar

Overview

California’s Net Energy Metering (NEM) program compensates rooftop solar owners for the energy they generate, reducing their electric bills. However, this program shifts grid maintenance and other fixed costs onto non-solar customers, contributing to rising electricity rates. Despite recent reforms, generous incentives for early NEM adopters will persist until 2042, creating a significant and ongoing cost shift. This fact sheet explores NEM’s history, its impact on rates and the grid, and offers policy recommendations to ensure a more balanced distribution of grid costs while supporting California’s climate goals.

To learn more, read our fact sheet here: The Rooftop Solar Dilemma: Rising Electricity Rates and the Diminishing Value of Rooftop Solar