CANARY MEDIA: California’s rooftop solar is a benefit, not a cost, to the state

A new study finds rooftop solar will save California $2.3B this year — a rebuttal to the ​‘cost-shift’ math that’s led regulators to stifle solar growth.

By Jeff St. John

For years, California utilities, regulators, and consumer advocates have argued that residents with solar panels on their rooftops are making electricity more expensive for everyone else in the state.

In August, a state agency released the latest report detailing this so-called cost shift caused by the rooftop solar industry. The report claimed that in 2024 alone rooftop solar will impose $8.5 billion in extra costs onto customers of Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, the state’s three major utilities.

But a new analysis commissioned by a distributed solar and storage trade group finds just the opposite — that California’s nation-leading 17 gigawatts of rooftop solar have actually saved customers about $2.3 billion on their utility bills this year.

Solar Heat Worldwide: Infographics illustrate versatile use of solar heat

IEA SHC’s 2024 edition of Solar Heat Worldwide highlights the resiliency and changing landscape of solar heat. This year’s report includes dedicated chapters on two growing technologies, Photovoltaic Thermal (PVT) and PV generated heat (PGH) systems. New this year, infographics are highlighting key data. The report and infographics are free to download here.

While the major solar thermal markets have faced declines, the resilience of the technology shines through as other markets steadily grow. As Lucio Mesquita, the Chair of the IEA SHC Programme, notes, “This reaffirms the versatility and adaptability of the technology, signaling a promising future for solar heat applications worldwide. Market growth from 2022 to 2023, for the first time, was not dominated by European countries highlighting this shifting landscape.”

This shift is occurring not only in residential systems but also in large commercial systems. By the end of 2023, 598 large-scale solar heat systems were in operation with a total installed capacity of 2.3 GWth, corresponding to 3.3 million m² of collectors.

By the end of 2023, the total solar heat capacity reached 560 GWth, equivalent to 800 million m² of collector area. This means a net increase of 18 GWth or 26 million m² of collector area in 2023 or an increase in cumulative global installed capacity of 3% in 2023 compared to 2022.

Despite this overall increase in total installed capacity, it's worth noting that the installed capacity of 21 GWth or 30 million m² of collector area in 2023 marked a decrease from the previous year's figure of 22.7 GWth. This indicates a 7% decline in the global solar heat market compared to 2022, mainly due to declines in the largest market, China.

However, with the building and industrial sectors accounting for 97% of the final energy demand for heat – there is enormous potential for solar heat in district heating and industrial processes. Expect significant growth as large-scale systems in the pipeline become operational and renewable heat policies, implemented in 2022, continue to take effect. Stay tuned for updates on this evolving trend. 

Solar Heat Worldwide

First published in 2005, Solar Heat Worldwide documents solar heat energy development over the past 20 years as a trusted reference source for solar heating and cooling data among international organizations, including the IEA, REN21, and IRENA. This year’s report includes data from 72 countries. And was, once again, written by Werner Weiss and Monika Spörk-Dür from the Austrian research institute AEE INTEC and supported by the Federal Ministry for Climate Action of the Republic of Austria and solar heat experts worldwide.

Important Links

• Solar Heat Worldwide report and infographics

• IEA Solar Heating and Cooling Technology Collaboration Programme (IEA SHC)

• AEE INTEC

• Federal Ministry for Climate Action of the Republic of Austria

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About IEA SHC

The International Energy Agency, Solar Heating and Cooling Technology Collaboration Programme (IEA SHC) is an international research and information program on solar heating and cooling technologies. Over 200 experts from 19 countries, the European Commission, and eight international organizations conduct collaborative research on a wide range of solar heating and cooling topics.

For more information: Pam Murphy, communications@iea-shc.org

WATCH: ABC 10 - Decline in solar power incentives

Opinion: Rooftop solar and batteries remain valuable investments

But CPUC decision reducing incentives for new installations did long-term damage to state’s clean-energy goals

By BERNADETTE DEL CHIARO

Solar installations in California have dropped off a cliff, and the market is at its lowest in 10 years.

This is exactly what solar supporters warned would happen following the California Public Utilities Commission’s recent decision to drastically, and abruptly, cut back consumer incentives for rooftop solar. And it is exactly what utilities — who view rooftop solar as competition — wanted all along.

A recent opinion piece in this paper said the rooftop solar industry is not dying but rather adapting to changing market conditions

The solar and storage industry is a resilient and innovative group. Rooftop solar paired with batteries is still a valuable investment for consumers and even more so as Pacific Gas & Electric’s rates continue to rise. We will find a way to move forward and put solar and batteries back in the hands of everyone from public schools to renters. But the downturn in the market is undeniable, and the repercussions go beyond impacts to businesses and solar workers.

While thousands of solar workers have lost their jobs in the past year and many businesses have closed shop, the long-term damage is what has been done to our clean-energy and grid-strengthening goals.

Every Californian is counting on local solar and storage to help keep the lights on and reduce air pollution because PG&E and the other investor-owned utilities obviously can’t do it on their own.