New Fees to Start for Solar Owners in Areas Served by Southern California Edison

Installing a home solar system will soon cost a bit more for Southern California Edison customers, but the changes are not expected to reduce the growth of home solar here.

Starting July 1, Edison customers will face a $75 fee to connect to the electrical grid system. They also now will have to pay a public-benefit fee that will cost most homeowners about $10 a month, according to solar industry officials.

While the fees will chip away at the financial incentive for home systems, homeowners will still benefit from "net metering," in which they are compensated for the energy they contribute to the electrical grid at the same rates the utility charges its residential customers.

The new fees stem from a vote last year by the California Public Utilities Commission that was considered a victory for the solar industry and the advocates of carbon-free energy production that helps curb climate change.

At the time, Edison and other privately owned utilities wanted the commission to do away with net metering, reducing the compensation for home solar system owners. The utilities contended that solar owners were not paying their fair share to use the electrical grid. Solar industry officials argued that the loss of net metering would have wiped out the residential market by making home solar systems unaffordable.

Edison has not seen major changes this spring in the number of applications for solar systems, said Ron Gales, a spokesman for the utility, which serves more than 14 million people in central and Southern California.

In May, Edison received 4,401 applications for solar systems, compared to 4,336 in May of last year, Gales said in an email.

Net metering, plus a federal tax credit equal to 30 percent of the cost of purchasing and installing a solar system continue to be the most important financial incentives for going solar.

B.J. Morgan had expected to pay new fees when he signed up earlier this year with Sullivan Solar Power for a seven-kilowatt solar system for his Temecula home. But the panels were being installed Friday, June 23, and his system should be operating before July 1, so he will avoid the new fees.

"It's a special bonus for us,"  Morgan said.

The new rules also mean solar owners will be compensated or charged based on time-of-use rates, in which electricity is cheaper when demand is low, but more expensive when demand is high, such as evenings.

This creates a financial incentive for the homeowners to add battery storage to their solar systems. With batteries, they can draw electricity they made earlier during the more expensive evening hours.

The batteries are now quite affordable because they now qualify for state rebates and federal tax credits, said Tara Kelly, an Escondido-based spokeswoman for Sullivan Solar Power.

Morgan of Temecula said going solar is a good deal for his family of four.

"It is a chance for us to save money and is good for our budget," he said. "That's the main reason. But it is an added benefit to help the environment and reduce our (carbon) footprint."

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