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Californians Pay Sky-High Utility Rates While Subsidizing Out-of-State Residents
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By News
Published 6 months ago on
November 25, 2024

Solar panels at the Kettleman City Power solar farm on July 25, 2022. (CalMatters/Larry Valenzuela)

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California’s solar energy boom has created a paradox: the state generates so much solar power that its grid often cannot handle the surplus, forcing operators to curtail production or pay other states to take the excess energy, the Los Angeles Times reported.

Over the past year, more than 3 million megawatt hours of solar power were wasted — enough to power 518,000 homes for a year. This marks a doubling of curtailed energy since 2021 and an eightfold increase since 2017.

Arizona’s largest utility saved $69 million last year by purchasing California’s excess energy, even as Californians faced rising electricity rates — now double the national average.

Ratepayers bear the costs of generating power that often goes unused, leading to billions in financial losses.

Critics argue that the state is overbuilding renewables without sufficient storage capacity. Current industrial batteries store energy for only four hours, inadequate to meet nighttime demand.

Newsom Plans to Triple Solar Installations

Gov. Gavin Newsom’s administration plans to triple solar installations by 2045 to achieve a carbon-free grid.

However, experts question whether storage technology can scale fast enough to prevent further waste. Meanwhile, financial incentives for rooftop solar have been cut to curb overproduction.

Energy traders and out-of-state utilities profit from California’s volatile energy market, buying cheap solar power during the day and selling it at higher prices after sunset.

Critics warn that these market dynamics disadvantage California ratepayers while raising questions about the state’s renewable energy strategy. Despite challenges, officials maintain that expanding solar remains essential to meeting climate goals.

Read more at the Los Angeles Times.

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