Why the California Energy Commission should approve SMUD’s controversial solar proposal

Thanks to a new law, a large portion of new housing in California is required to have rooftop solar added during construction. The law aims to rapidly expand renewable energy use and more quickly transition away from fossil fuels that contribute to global warming.

The law allows some builders to opt for communal solar sources in lieu of solar panels on rooftops. The Sacramento Municipal Utilities District wants to give builders the option to connect to the utility’s own local solar farms.

The California Energy Commission, which helps enforce the new law, would be wise to approve SMUD’s alternative tomorrow.

Critics of SMUD’s proposal say it undercuts the rooftop solar requirement. They think approving SMUD’s alternative would hamper consumer choice and hold back the solar industry. But the alarm about SMUD’s solar farm options is overblown. On closer examination, the proposal appears to align well with the new solar energy policy.

That doesn’t mean SMUD is right about everything. The utility faces valid criticism from homeowners who feel SMUD is trying to make it harder for them to choose rooftop solar.

The amount of new solar energy capacity created is the same whether it’s coming from SMUD or from rooftop panels. The energy commission requires builders to meet the same solar energy requirement for new homes either way.

Builders would connect their developments to new additional solar capacity, including a solar farm SMUD is presently building at Rancho Seco.

Connecting to solar through SMUD could also save on costs builders would otherwise pass on to consumers. The state is experiencing a housing crisis, and flexibility is critical.

It’s important to also remember this is a proposed option, not a requirement. If there’s strong consumer demand for the greater energy independence of rooftop solar, builders will presumably respond.

Energy commission staff recommended the commission approve SMUD’s proposal, which meets the requirements of the new rooftop solar law.

Between the elected board of the county’s public utility and the state energy commission, there are multiple layers of accountability to ensure SMUD’s solar alternative expands local renewable energy usage.

But The Sacramento Bee Editorial Board is still concerned by criticism of SMUD’s larger approach to rooftop solar. Homeowners who have voluntarily installed solar panels say the utility is overly restrictive when it comes to allowing residential communities to develop energy independence.

“You should have a right to make as much solar energy as you’re willing to pay for,” said Lee Miller, a homeowner in a south Sacramento County community where many homes have solar panels.

SMUD is also in the process of restructuring its payment structure in a way that will impact homeowners with solar. Miller and others worry rooftop solar could become prohibitively expensive. SMUD officials say that under the current payment structure, customers who don’t have rooftop solar are “subsidizing” those that have it. But critics take issue with SMUD’s framing of the issue.

“Fundamentally, public power is the voice of the people. It’s not a company with a monopoly, and that’s kind of the way they’re behaving,” said S. David Freeman, a former SMUD general manager.

SMUD has done a tremendous job transitioning to clean energy sources while keeping rates reasonable. But should the utility have unilateral power over how our region transitions to clean energy?

That’s a question for another time. On Thursday, the energy commission will decide whether to allow builders to plug new housing into new solar farms operated by SMUD. It’s a practical option, and the commission should allow it.

This story was originally published February 19, 2020 at 1:34 PM.