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CA’s solar tax supporters are trying to run a “wealthy vs disadvantaged” narrative: It doesn’t have to be

Credit: Tesla

Published

3 years ago

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A look at the California Public Utilities Commission’s (CPUC) ‘s 204-page proposal for its proposed new net metering rules (NEM 3.0), as well as the comments of the initiative’s supporters, shows something interesting. Supporters of NEM 3.0 are arguing that the current net metering rules, NEM 2.0, are practically an assault on disadvantaged households and a multi-billion subsidy for wealthy homeowners. 

This narrative could be found all over the CPUC’s NEM 3.0 proposal. In the document, the commission argued that the existing net energy metering tariff “negatively impacts non-participating customers; is not cost-effective; and disproportionately harms low-income ratepayers” since homeowners without solar are being shouldered with the price of maintaining the grid. A study of the state’s policies further noted that California ratepayers spent about $3 billion a year to support net metering. 

Tesla launches efforts to stop CA’s solar tax, which Musk dubs as “anti-environment”

As critics of the initiative, such as Tesla and other renewable companies and organizations in the state, launched efforts to combat the NEM 3.0 proposal, organizations supporting the CPUC’s proposal have adopted a pretty similar stance. Affordable Clean Energy for All, a coalition of groups that include open NEM 3.0 backers like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, has been particularly active in pushing the idea that NEM 2.0 takes from the disadvantaged and gives to the wealthy. 

Kathy Fairbanks, a spokeswoman from Affordable Clean Energy for All, highlighted this recently. “It’s hypocritical that people who claim to want to help disadvantaged communities are advocating to keep a regressive policy that takes from the poor and gives to publicly-traded companies to fatten their profits, increase their stock price and shareholder wealth,” she said. 

But inasmuch as a “rich vs. poor” concept is compelling, such a simplistic narrative hardly addresses the issues that critics are bringing up about NEM 3.0. While there is some argument in the idea that companies like Tesla are fighting the proposal since it is involved in the residential solar business, the fact remains that rooftop solar in California is growing fastest in working and middle-class neighborhoods. Not millionaires in their massive mansions — just regular working individuals that are learning the advantages and practicality of renewable energy. 

Solar Rights Alliance Director Dave Rosenfeld mentioned this in a statement last month, as critics of NEM 3.0 delivered over more than 120,000 public comments to the California Public Utilities Commission (CPUC) and Governor Gavin Newsom. “This is where the rubber hits the road on blackouts, rising electricity bills, and air pollution. The correct path is to help millions more working and middle-class people get solar so we can keep up our progress and reject the utility profit grab that threatens to take us backwards,” Rosenfeld said. 

Contrary to the idea that net metering takes from the disadvantaged and gives to the wealthy, an analysis by national grid modeling experts Vibrant Clean Energy has estimated that the continued growth of distributed energy resources (DER) such as rooftop, community solar, and energy storage, could actually save California ratepayers $120 billion over the next 30 years. “What our model finds is that when you account for the costs associated with distribution grid infrastructure, distributed energy resources can produce a pathway that is lower cost for all ratepayers and emits fewer greenhouse gas emissions,” Vibrant Clean Energy CEO Dr. Christopher Clack said.

While the CPUC seems very determined to ensure that NEM 3.0 is approved, the voices against the initiative are growing louder. Apart from Tesla CEO Elon Musk, who called the proposal “bizarre” and “anti-environment,” other notable personalities have expressed their criticism of NEM 3.0 online. These include, interestingly enough, two actors who played Marvel’s The Incredible Hulk on the big screen, Edward Norton and Mark Ruffalo, as well as basketball legend Bill Walton. California Governor Gavin Newsom also seems a bit more open-minded than the CPUC, noting that there’s more work to be done in the NEM 3.0 proposal. 

“That draft plan that was recently released, I just had a chance to review, and I’ll say this about the plan: We still have some work to do… Do I think changes need to be made? Yes, I do,” Newsom recently said. 

The California Public Utilities Commission may vote on its NEM 3.0 proposal as early as January 27, 2022. 

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.

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Simon is a reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday.

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Energy

Tesla Energy had a blockbuster 2024

Published

2 months ago

on

December 31, 2024

By

Credit: Tesla

Tesla Energy has become the undisputed dark horse of the electric vehicle maker. This was highlighted by Tesla Energy’s growing role in the company’s overall operations in the past quarters. 

And as per Tesla’s year-end milestone posts on X, Tesla Energy had a blockbuster 2024.

Tesla Energy’s 2024 milestones:

  • As per Tesla on its official social media account on X, the company has hit over 800,000 Powerwalls installed worldwide. 
  • From this number, over 100,000 Powerwall batteries have been enrolled in virtual power plant (VPP) programs.
  • The Powerwall 3 has officially been launched in the United States, Canada, Puerto Rico, the U.K., Germany, Italy, Australia, and New Zealand.
  • The Tesla Megapack hit over 22 GWh in operation across more than 60 countries across the globe.
  • The Lathrop Megafactory, which produces the Megapack, has been ramped to 40 GWh per year. 
  • The Lathrop Megafactory has also produced its 10,000th Megapack battery.
  • The Shanghai Megafactory was completed in just seven months, and it is ready to start Megapack production in Q1 2025.

Powerwall owners’ 2024 impact:

  • As per Tesla Energy, Powerwall owners generated a total of 4.5 TWh of solar energy globally in 2024. This was equivalent to powering a Model 3 for more than 17 billion miles.
  • A total of 1.1 TWh of energy was stored in Powerwalls in 2024. This protected homes from over 5.8 million outages during the year.
  • Tesla’s Storm Watch feature for Powerwall batteries covered 2.8 million severe weather events over the year.
  • Powerwall owners saw collective savings of over $800 million on utility bills.
  • Virtual Power Plants contributed over 2.2 GWh of power to the grid. This reduced the need for 2,200 metric tons of fossil fuel peaker plant emissions.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Energy

Utah’s rPlus Energies breaks ground on Tesla Megapack battery system

Published

5 months ago

on

September 24, 2024

By

Credit: Tesla

Utah-based rPlus Energies recently held the groundbreaking ceremony for the Green River Energy Center, a 400 MW solar PV and 400 MW/1,600 MWh battery storage project in Eastern Utah. Tesla Megapacks will be used as the upcoming facility’s battery storage solution. 

At 400 MW/1,600 MWh, the Green River Energy Center is expected to become one of the largest solar-plus-storage projects under development in the United States. Once operational, the facility would supply power to PacifiCorp under a power purchase agreement, as noted in a press release. 

Utah Gov. Spencer Cox shared his excitement for the project during the Green River Energy Center’s groundbreaking event. As per the Utah Governor, the solar and battery storage system represents a notable step forward for the state’s sustainable energy efforts. 

“This project is being built in rural Utah, by rural Utahns, and for all of Utah. When rural Utah thrives, the entire state prospers. Today, we’re not just breaking ground—we’re building a future of affordable, abundant energy in Utah,” the official noted. 

The Green River Energy Center secured over $1 billion in construction debt financing earlier this year. The facility is also expected to create about 500 jobs, many of which will be filled by local workers. With this in mind, the solar and battery farm would likely prove to be a boost to Emery County’s economy, enhancing tax revenue, strengthening public services, and offering long-term employment opportunities for the area’s residents. 

Sundt Construction will serve as the project’s contractor, EliTe Solar will supply the solar modules, and Tesla will provide the battery storage system for the project. Luigi Resta, President and CEO of rPlus Energies, noted that the Green River Energy Center is special because of the entities that have worked together to make the facility a reality. 

“It’s the partners that make this project special, that have made this monumental project possible. From our equipment providers to the onsite talent, and the support of the local and regional community, we owe this project’s success to each of you,” he stated. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Energy

Tesla Energy loses director who brought Autobidder

Published

6 months ago

on

September 5, 2024

By

(Credit: Tesla)

Tesla Energy is losing a director who brought Autobidder, a real-time trading and control platform that provides value-based asset management and portfolio optimization, to the company.

Rohan Ma, who has been at Tesla for just under eight years, announced he would depart the company on LinkedIn, aiming to take on a new opportunity elsewhere.

Ma posted:

“After eight years at Tesla, this will be my last week. It was a ride of a lifetime! Today, Tesla Energy is thriving and I can confidently say it’s in the best position it has ever been in to drive impact toward the original mission I signed up for. I’m proud to have contributed over the years to where it is now, and will be cheering the team on from the sidelines as they carry the torch forward and continue to relentlessly solve problems at the frontier of the energy transition.”

Ma started as the Senior Manager of Energy Optimization at Tesla back in November 2016. After four-and-a-half years at the position, he then moved on to a new role as the Director of Energy and Software Optimization. He has been in that role for over three years.

The exit of Ma is the latest in Tesla’s tough year in terms of losing high-level employees.

Earlier this year, as a part of widespread layoffs, Tesla eliminated up to 20 percent of its workforce and people like Rebecca Tinucci, who was the company’s Senior Director of EV Charging.

Tesla also lost Rohan Patel, Vice President of Global Public Policy and Business Development, and Martin Viecha, who was Head of Investor Relations, are just a few notables to depart.

Autobidder

Tesla’s Autobidder platform helps owners and operators make money by autonomously monetizing battery assets. It is a real-time trading and control platform that maximizes revenue according to business objectives and risk preferences.

Tesla Megapack, Autobidder to be deployed in big battery project in Queensland

Autobidder already has hundreds of megawatt-hours under management and continues to scale. It is hosted on Tesla’s secure cloud infrastructure that is engineered to handle large and complex computations.

Without Ma’s expertise, Autobidder would likely not be involved in Tesla’s Energy division at all, and although it is not frequently discussed, it is still a major part of the business’s growth over the past several years.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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