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California needs to move on from net metering, advocates, industry and utility leaders say

September 22, 2022

Participants in an RE+ panel on ratemaking trends generally agreed that the time for net metering policies has passed in many states. But finding consensus around what should come next could prove challenging.

“Here in California, we are in a period of relatively extreme rate inflation,” said Matt Baker, director of the Public Advocates Office for the state of California. Rates have increased some 50-80% in the San Diego region, and Baker said his office had determined that net metering was responsible for 15-25% of that increase. In some cases, he said, these increased rates have deterred California homeowners from taking steps such as installing heat pumps, which threatens the state’s overall climate goals.

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