Yahoo Finance Shining Too Bright: California's Solar Success Sparks Price Plunge
California's solar energy efforts have been so successful that renewable energy has powered 100% of the state's main grid for at least 15 minutes on most days over the past month.
But now, the state and its grid operator are facing an unusual situation. With an abundance of solar energy integrated into the grid, during bright spring days with reduced demand, electricity prices plummet into negative territory. The surplus of solar power results in gigawatts being "curtailed" or effectively wasted, according to a report in The Washington Post.
California's response to balancing renewable energy goals with rooftop solar economics has been to reduce incentives and slow installations. This approach, while addressing short-term grid issues, might hinder long-term solar development in the state. As other states ramp up solar capacity, they could encounter similar challenges in the future.
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States that are starting to experience the same issues include Nevada, which generates 23% of its power from solar, and Hawaii, which has thousands of homes with rooftop solar.
In April 2024, the Biden administration launched a program to create or expand solar programs in low-income and disadvantaged communities.
"Today, my administration is investing $7 billion in a new program called Solar for All that will enable over 900,000 low-income households to have solar on their rooftops for the first time," Biden posted on X on April 22. "Solar for All will give folks more breathing room — and cleaner breathing room at that."
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California is one of the states in line to receive a $250 million grant from the Solar for All program to expand residential solar in low-income and disadvantaged communities.
Not everyone shares Biden's enthusiasm for the program. Jessica "Elle" Smith criticized the use of public money for the program, writing, "Translation: ‘I'm blowing $7 billion of your money equipping 900,000 of the most likely to default single-family homes with solar, so when BlackRock sweeps them up in foreclosure, they won't have to do it themselves."
John Podesta, senior adviser to the president for international climate policy, said the program will ensure low-income communities and not just well-off communities will benefit from cost savings that the Solar for All program provides.
"Solar is the cheapest form of electricity — and one of the best ways to lower energy costs for American families," Podesta said at the time the program was announced.
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This article Shining Too Bright: California's Solar Success Sparks Price Plunge originally appeared on Benzinga.com
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