Financial Issues Vex Solar Rebate Bill

Phil Yost writes in the San Jose Mercury News that Sacramento's love affair with solar power may be tripped up in the details. It's all about the money.

The goal is ambitious in one sense -- 3,000 megawatts is 30 times the current amount of solar generation in California. But the effect will be modest -- 3,000 megawatts is only 5 percent of the present statewide peak demand. Those million solar roofs would displace five power plants the size of Calpine's Metcalf plant in South San Jose.

And as usual, there are a couple of vexing details, particularly about distributing the cost.

Solar owners can ``sell back'' to the system any power they generate that exceeds what they use. That is as it should be. But determining a fair ``sell back'' price isn't easy.

The retail price of electricity includes both the cost of generation and of wires to carry power to customers. Solar generators still need those wires, and they should pay for them. On the other hand, solar is most effective on hot sunny days when electricity is most in demand and the cost of providing it is the greatest. The sell-back price should reflect that reality as well.

The consumer group TURN notes that customers who use only a modest amount of electricity -- often lower-income households or renters -- have been protected from rate increases. SB 1 does not exempt them from the solar surcharge. But they are unlikely to benefit from the solar subsidy.

Those financial issues can be resolved if legislators don't get swept up in solar-mania. California ought to get warmed up to solar power, as long as it doesn't get overheated.