Several states, notably California and Florida, are proposing major changes to how household solar installations are compensated by their local electric utilities. Utilities complain that customers with solar power installation are paid too much for the electricity they generate, forcing other customers to pay more. Customers who installed solar are complaining that utilities and regulators have engaged in “bait-and-switch” tactics, encouraging them to adopt solar with generous payments and then changing the rules afterward.
Both complaints are valid.
Jonathan A. Lesser, PhD, is the president of Continental Economics, an economic consulting firm, and an adjunct fellow with the Manhattan Institute.
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