San Diego, California - California's General Assembly recently passed AB 327, and solar and electric contractors across the state are anticipating the impact of the new legislation. Many companies that install solar for homes in San Diego are concerned that the bill's provisions will seriously harm the economic competitiveness of solar energy installation. As a leading San Diego solar contractor, Milholland Electric is also concerned about the passage of AB 327 and how it might affect those who are considering San Diego solar for home or business use. More information is available about Milholland Electric at www.milhollandelectric.com
The provisions of AB 327 include and will affect all of California, including the "big three" utility companies. Environmental groups, including solar power contractors, argue that the provisions of AB 327 could seriously undercut the competitiveness of rooftop solar power grids by adding the equivalent of $2.50 per watt to the cost of a photovoltaic system. This equates to a 30 percent increase in the cost of a typical system put in place by a San Diego solar installer.
AB 327 is damaging to solar economic efficiency in two ways. First, by bringing down rates for those who use the most power according to the current "tiered" system, AB 327 removes the incentive to use less power. This includes solar customers who will now pay more per kilowatt hour for the electricity they use even though they do not use much thanks to their solar grid. It will also affect the amount of time necessary to recoup the initial cost of investment in a solar system.
There are benefits to leveling the tiered system for customers in California's hot Central Valley, where summer usage can quickly peak. However, there is no benefit to customers from the second provision of AB 327, the "fixed rate" charge. Under the bill, even customers who use no electricity could be charged a monthly fee. These fees are limited to $120 per year but may go up to as much as $360 per year for some companies.
Ultimately, changing the rate system to benefit one group of electric consumers may harm others. However, Milholland Electric will continue to provide safe, professional and cost-effective installation of both traditional electric and solar power systems.
About Milholland Electric:
Milholland Electric has been a leading San Diego solar and electric contractor for more than 27 years. Installing both commercial and residential solar in San Diego as well as traditional electrical components, Milholland Electric consistently provides quality, professional service. For both homes and businesses, Milholland Electric remains one of the most recognizable names among solar electric contractors in southern California and Arizona.
For More Information: www.milhollandelectric.com
Source: GreenTech Media, " AB 327: The Dark Side for California Solar ," Jeff St. John, September 4, 2013.