CPUC Okays More Fees: Will This Push CA’s Utility Bills Even Higher?

 

On May 9th, 2024,  the California Public Utilities Commission (CPUC) announced its approval of new flat rate charges for electricity consumers. As part of an effort to overhaul the state’s electricity pricing structure, the decision introduces income-based fixed charges for residential customers while simultaneously adjusting usage rates. 

As Californians grapple with already high living costs, these changes are yet again raising questions about affordability, equity, and the impact on the state's solar market. Below, we discuss what went into the CPUC’s decision, and how it’s expected to impact solar uptake. We also take a look at how the right solar lead provider can help contractors endure demand fluctuations in the wake of CPUC policy revisions. 

New Flat Rate Charges Coming to Utility Bills

The CPUC's decision to implement fixed charges dramatically changes how electricity costs are calculated. Under the new plan, residential customers will pay a flat fee alongside traditional usage-based rates. 

Although the state’s top utilities proposed charges ranging from $49 to $74, the CPUC decided the following:

• The flat rate will be $24.15 per month, with low-income customers eligible for discounted flat rates of $6 or $12.

• Electricity usage rates will now be 5-7 cents lower. 

The Solar Industry is Wary of CPUC's Motivations

The CPUC justifies these changes as a necessary step towards a more equitable and sustainable energy system. According to them, the flat rate charges are intended to ensure that all customers contribute fairly to the maintenance of the electric grid, regardless of their energy consumption. 

Additionally, by lowering usage rates, the CPUC hopes to incentivize customers to adopt energy-efficient practices and technologies, including rooftop solar installations and accompanying storage systems. This dual approach aims to stabilize utility revenue.

These claims have been met with skepticism. The memory of the CPUC’s NEM 3.0 cuts still looms large. Critics argue that the new fixed charges will disproportionately impact low- and middle-income families, potentially discouraging the adoption of rooftop solar and other electrification measures. Many feel that this is yet another case of CPUC working in the economic interest of IOUs. 

Stephanie Doyle, California state affairs director for the Solar Energy Industries Association (SEIA), voiced these concerns, stating:

 

“While the final charges are lower than what investor-owned utilities wanted, these are still new costs coming out of the pockets of California families that are already struggling with the high cost of living in the state. Any future changes to the fixed charges must thoroughly consider the impact of rooftop solar and storage adoption and electrification measures that are critical to meeting the state’s climate goals. It’s clear that there are better ways to reduce California’s extremely high utility rates and encourage electrification, and SEIA will continue to push for those policies going forward.” 

What’s the Fallout for Households and Solar?

California’s solar sector has already had a tough enough year thanks to NEM 3.0 and other anti-solar decisions by the CPUC. So the ripple effects of this new change have become a source of added anxiety. 

The introduction of flat rate charges is expected to have a mixed impact on California’s electricity consumers. Those in higher income brackets will feel the pinch of the new charges the least. Conversely, lower-income households will likely experience even more of a burden due to rising energy bills. 

For the solar industry, the implications are equally complex. The CPUC asserts that the new charges will promote the adoption of solar energy by making it more affordable to invest in rooftop installations. Lower usage rates could make solar-generated electricity more attractive, potentially offsetting the fixed charges. Obviously, in the face of inflated utility bills, solar becomes especially enticing. But with added financial burden and reduced net metering compensation, some customers may feel as though they still can’t afford solar. 

Solar Lead Generators Keep Sales Moving Forward

By connecting contractors with homeowners who have already qualified as top solar prospects, solar lead generation companies like Grid Freedom ensure that contractors can find the customers they need, no matter what’s going on in the market. 

Contractors can get a steady stream of pre-scheduled solar leads, relieving the worry of when they’ll find their next sale. Grid Freedom delivers confirmed appointments with prospects who have demonstrated clear intent to install solar ASAP. 

Find California’s Most Prepared Solar Buyers at www.GridFreedom.com 

Is 2024 the Year You Should Change Your Solar Lead Provider?

 

As we ease into 2024, the solar industry is facing a changed landscape. Rapid and dramatic changes have hit the industry, affecting market dynamics in many states, and therefore, impacting the number of customers looking for solar installations.

These conditions are making it difficult for many contractors who’ve relied on sub-par solar lead generators to supplement their income. The stakes are higher now - contractors can’t afford to lose any more money or time on dead-end opportunities.

If you’ve been disappointed in the quality you’ve been seeing from your solar lead provider, this year is when that strain is going to become even more painful. Transitioning to a superior supplier will be an essential move for ensuring your revenues stay abundant. 

Let’s discuss further why 2024 is a pivotal year for the solar sector, and why it’s time for solar contractors to partner with better solar lead generation companies. 

The Changing Landscape of the Solar Industry

2024’s solar industry is witnessing a unique transformation. Multiple factors are converging to suppress demand in the residential market.

Across various states, there has been a trend towards adopting time-varying or avoided cost rates for net energy metering. This shift is designed to better align the compensation for solar generation with times of peak demand, addressing the "duck curve" phenomenon. However, this change in compensation rates has often led to considerable reductions in the value of credits for solar energy fed back into the grid. 

Some states have implemented additional charges for solar customers, such as residential fixed charges or minimum bill increases. These changes have affected the overall economics of installing and operating solar energy systems, making them less attractive to homeowners.

One of the most significant developments is the introduction of California's NEM 3.0, which caused an 80% decline once it took effect in 2023. The steep drop in demand among would-be solar customers is only expected to continue, as the incentive to go solar has been slashed. Several other states, such as Arizona, North Carolina, Idaho, and Wisconsin, have either reduced or canceled their net metering programs or have proposed to do so. 

Simultaneously, technological advancements in solar energy systems have enhanced their efficiency and cost-effectiveness. This progress not only appeals to a wider market but also intensifies the competition within the industry. 

As a result, solar contractors are now operating in a market that is more dynamic and competitive than ever before.

The Need for Dependable Lead Providers

In such an unstable environment, the value of high-quality leads cannot be overstated. With poorly-performing providers, contractors are vulnerable to significant drops in revenue. 

Chances are that the tough market will make it so that you rely on agency-sourced leads to fill your calendar. But if those leads have a low payoff rate, a full schedule may yield little income. 

The key for solar contractors is not just in acquiring a large number of leads, but in consistently securing those that are high in quality and well-targeted. This is where the role of a reliable lead provider becomes crucial.

A good supplier understands the changing dynamics of the market and adapts their strategies to align with these changes. They have honed their process to account for factors that could impact a customer’s willingness or ability to make an investment as big as solar. Their expertise in identifying potential customers who are genuinely prepared to pursue an installation can make a big difference in the efficiency and success rate of sales conversions.

Making the Switch in 2024

In 2024, choosing the right lead provider is not just about maintaining business as usual - it's about finding ways to adapt and thrive in a tumultuous time. You’ll have the best success by upgrading your lead provider to one that has a proven ability to deliver sale after sale. 

Grid Freedom is a trusted partner among contractors looking for security in this troubled market. Our agency delivers leads in all 50 states, using the industry’s most effective lead generation and screening methods to find the most promising customers in your area. 

We connect you to homeowners who are not just considering solar but are ready to take action, with confirmed appointments pre-booked. Lock in meetings with residents who’ve proven they’re worth your time. 

Learn more about our superior leads at GridFreedom.com 

What Minnesota's Clean Energy Bill Means for Solar Contractors

 

Last month, Minnesota’s Governor Walz signed a new bill that sets a goal of 100% clean energy production. This development is poised to stimulate a great deal of growth in the state’s solar market for nearly the next two decades. So what can installers expect to come?

How Minnesota’s 100% Clean Energy Bill will Impact Solar Demand

The new push for carbon-free electricity is targeting the utility sector, setting the following milestone goals:

 

●       By 2030: 80% for public utilities and 60% for other utilities

●       By 2035: 90% for all utilities

●       By 2040: 100% for all utilities

 

These targets have been set with the interests of all parties in mind, aiming to provide clean and affordable energy to citizens as quickly as possible, while allowing sufficient time for utilities to plan an efficient and responsible transition.

Many new jobs are expected to come to the energy sector, specifically in communities where carbon-based plants are being decommissioned. Solar is expected to make up a significant part of new additions to the energy grid, creating numerous opportunities for contractors working in utility installations. Of course, planning has only just begun, but solar installers can expect to see a steady increase in demand.

Top Solar Lead Companies can Help Drive Sales Among Minnesota’s Residential Customers

While the new bill is set to boost utility-scale solar directly, it does not include any new incentives for residential solar. Minnesota homeowners do, however, still have access to the Solar Sense program, as well as net metering compensation and tax benefits.

That being said, solar contractors may want to seek the aid of a solar marketing agency if they are looking to improve their performance in the residential sector. A top solar lead generation company like Grid Freedom can provide instant access to homeowners who have signed up for their first consultation.

These pre-qualified leads enable you to increase the number of solid prospects filling your calendar, minimizing the need to invest in raw leads that have yet to be screened or verified.  Every lead that comes from Grid Freedom has been produced via inbound marketing and screened via phone interviews with live agents. In addition, they are offered only to a single contractor, eliminating worry over the competition.

These criteria are rare among solar marketing agencies, who typically rely on a quantity-over-quality sales model. Maintaining the highest standards for all leads is what has made Grid Freedom one of America’s top solar lead companies. Bookings are available year-round, in Minnesota and every other state.

Get Confirmed Appointments with Homeowners at www.GridFreedom.com

 

Required Community Solar is Coming to California

Between all of the wildfire damages, blackouts, and ever-rising electricity prices, there is no shortage of reasons why Californians have come to believe that utility companies don’t have their best interests in mind. When it comes to policy, the state’s utilities have proven that they will invest their efforts in legislation that actually makes it harder for residents to access cleaner, more stable, and more affordable energy. 

This is why bill AB 2316 was developed. The bill requires utility companies serving over 100,000 customers to “enable ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources”. Community solar projects fit this description to a tee. 

Newsom Greenlights Community Solar Requirement

On September 16th, 2022, Governor Newsom signed AB 2316 into law. Now, California’s largest utility companies must provide community renewable energy programs to their customers. These programs must also:

• ensure at least 51% of capacity serves low-income customers

• prohibit its costs from being paid by nonparticipating customers

• require that the construction of its community renewable energy facilities comply with specified prevailing wage requirements

• provide bill credits to subscribers

• prioritize the maximum use of state and federal incentives

• accelerate implementation to ensure that time- or quantity-limited federal incentives can be obtained for the benefit of subscribers

These are a long list of perks coming to California communities, and the bill’s emphasis on project acceleration means that we can expect a surge of projects on the horizon. 

Solar Lead Companies Can Help Contractors Access More Projects

While we wait for these community solar projects to come into development, California’s contractors can secure more work via solar lead generation companies. Top agencies can help contractors connect to residents that are serious about solar and ready to discuss the details of an installation. 

Grid Freedom is one of these solar agencies, delivering fully screened and prepared leads to contractors at fair rates. All leads come with their first appointment already scheduled, meaning contractors can jump right to planning a system with their new customers. No contracts or purchase minimums are required, keeping terms as favorable as possible for contractors.

Get More Opportunities via America’s Top Solar Lead Company: www.GridFreedom.com

Fed Up: California's Power Crisis is Driving Solar Installation Leads

California just survived an unprecedented heat wave. For a full week, record temperatures were reached throughout the state. Sacramento saw scorching 116° days, and Death Valley topped out at 127°. Even the normally-cool Bay Area sweltered: San Francisco reached 97°, and San Jose baked at 109°. 

These temperatures always cause tension for the residents who have to suffer through them, but utility companies’ calls for power conservation during this period sparked serious discontent. Californians were asked to minimize energy usage at hours when temperatures hit their peak - a request seen as not only inhumane but offensive considering these companies’ underwhelming efforts to improve the state’s energy crisis. 

Californians Can’t Count on Big Energy to Fix the Grid

California’s big utilities may have invested more in infrastructure maintenance and electricity generation, but they’ve pushed hard against opportunities for residents to take power into their own hands. 

As of February 2022, PG&E, SCE, and SDG&E had together funneled $1.7 million toward the Affordable Clean Energy for All coalition, which is behind the push for the pending NEM 3.0 update. These changes are set to seriously reduce the financial benefits of going solar, keeping residents more dependent on grid energy. Though this is at odds with the goal of reducing strain on the state’s energy grid, it’s well in line with the intent to keep profits as high as possible. 

This combined with other lobbying efforts has proven that California’s top utilities hardly see grid sustainability as a priority. Citizens will continue to face ill-timed calls for conservation and the threat of rolling blackouts if they remain reliant on these corporations. 

As they realize this, more homeowners aim to remove themselves from the equation. They want the independence and peace of mind that comes with solar, even in the face of lowering incentives. This attitude is pushing an increase in solar installation leads for contractors. 

Help New Solar Leads Seize Their Power

Disgruntled homeowners are coming into the solar market with major emotional motivation right now. Their anger toward big utilities and frustration with the energy supply has put many in a frame of mind where they want to install solar ASAP.

Contractors can jump on these solar sales leads most effectively by partnering with the right generator. Working with an agency that screens lead fully before delivery ensures that contractors connect with homeowners that are truly serious about solar adoption. 

Grid Freedom is one of the only agencies in the industry that puts all leads through intensive phone screenings with live agents. Our process ends with the scheduling of their first consultation, perfectly preparing highly-suitable leads for the final pitch. We make certain that you’re meeting with homeowners who have demonstrated real enthusiasm and readiness to take action.

Find Solar Installation Leads at www.GridFreedom.com 

NREL Explains What Drives Solar + Storage Adoption

On August 23rd, the National Renewable Energy Laboratory (NREL) gave a webinar presentation hosted by the Solar Energy Industries Association (SEIA). The presentation focused on what key factors propel the value of solar plus storage for residential customers and the outlook on adoption in the coming years. 

Solar + Storage Adoption is Based on Variable Value

Conclusions were drawn based on NREL’s extensive research into solar storage in terms of market growth and customer benefits. In a 2020 study, NREL cited that storage deployment is “driven by a combination of capacity and energy value”. The more residential customers can get out of adding storage to their PV systems, the more they will adopt and optimize their storage capacity.

A more recent report found that values are significantly influenced by local utility rate structures. NREL assessed a community in Arizona in which all households were enrolled in an experimental distributed generation (DG) rate program. The DG rate structure was intended to reduce grid demand during peak periods. However, the demand surcharges that resulted canceled out almost all solar + storage customer savings. 

That being said, individual household savings varied across the board, depending on factors such as peak-time usage, total demand, home size, and the size of their PV system. Therefore, certain households stand to gain much more out of solar + storage installations than others. 

NREL also found that storage adoption is heavily dependent on PV pricing. Fortunately, the prices of both PV systems and storage augmentations have shown a continual decline. The cost of solar storage in particular has dipped by almost 10%. 

Forecasting sees tremendous opportunities in store for the residential solar + storage market, especially in new construction. NREL estimates that 0.96 million new homes will be built every year between 2017 and 2030.

Leveraging NREL’s Insights 

Given the factors above, it’s critical that solar contractors make customer education a priority. Those who are affected by demand-based rates should be informed of how this can impact their solar + storage savings. If the customer would benefit from switching their utility rate structure and is free to do so, this should be encouraged. 

Customers who are locked into a demand-based rate structure that invalidates most of the cost incentive may not be the best prospects to pursue. But new construction is fertile territory for new opportunities. Contractors can win these projects by demonstrating to builders that their contribution will avoid delays and will improve a home’s market appeal. Given the extreme prices seen in real estate at the moment, construction companies have a strong concern that building homes with excessively high values can price out otherwise willing buyers. 

Leads for Solar Contractors

Clearly, finding ample solar + storage customers still presents challenges. Contractors can enjoy more success by partnering with a lead generation agency capable of delivering a steady supply of legitimate residential buyers. 

Grid Freedom is a favored firm in this domain. With 100% exclusive leads that have been personally screened for purchase potential and scheduled for their first appointment, Grid Freedom meets the highest standards of quality. Contractors across America return to the agency as a dependable source of customers, even as the solar industry experiences volatility.

Find Residential Solar Leads at www.GridFreedom.com  

Solar Lead Generation Companies Help Florida Contractors Survive the Storm Season

For most solar contractors in the United States, summer is a time of peak activity. Pleasant, dry weather makes it an ideal time to install rooftop systems without interruption. However, in Florida, summer tends to bring a slowdown. 

The subtropical climate creates rather volatile conditions, and all of the resulting storms make it a challenge to maintain a consistent installation schedule. Homeowners are also less willing to consider solar during this period since it often strikes them as a bad idea to install right when their rooftop is about to receive battering. 

Harsh Weather Still in Store for 2022

The chaos of the storm season can cause a lot of trouble for contractors who need to keep sales rolling in. And at this point, it’s only going to ramp up. 

NOAA has predicted that 2022 will have an especially active storm season and that most of this activity is going to come now that we’ve passed the middle of August. Forecasts estimate a total of 14-22 storms before the arrival of November 30th. Of that, NOAA expects that 2022 has 3-6 major hurricanes in store for the Atlantic. So while the majority of the country will be enjoying a placid end to summer, Florida is bracing for a pummeling. 

Solar Lead Partnerships Make Up for Lost Sales

Savvy contractors who want to combat the season’s depressive effect on their sales numbers are reaching out for help. They’re partnering with solar lead generation companies that are able to provide a steady influx of solid sale opportunities.

This resource is not just useful for maximizing the number of installations made through the storm season - it’s also highly effective at making up for the slump after the season has passed. 

Late fall and winter will bring many of Florida’s solar prospects back into the market, and the right lead agency can help contractors zone in on the ones that will pay off. Delivering a more streamlined sale experience to contractors can help them regain their financial footing far more quickly than if they depended on organic generation methods.

Grid Freedom is a Top Source for Florida Solar Leads

Many of Florida’s contractors have already chosen Grid Freedom as their go-to source for residential solar leads. The agency has become one of the preferred companies in the industry, thanks to its delivery of high-ROI leads that have been put through the most rigorous screening process available. 

All Grid Freedom leads are generated in-house and provided to only one contractor, eliminating any concerns about lead-sharing with competitors. The agency employs inbound generation methods, focusing on attracting residents who show an active interest in solar and serious intent to move forward with installation. 

These qualities make Grid Freedom leads the most suitable for contractors who need fast-tracked, dependable sales. Florida’s installers can learn more by visiting the website and signing up for a free membership.

Get Sale-Ready Leads at www.GridFreedom.com