OpEd: Politics Creates Solar Blind Spot – San Fernando Valley Business Journal

meIn a shocking action last April, the California Public Utilities Commission eliminated a policy that was critical to the incredible growth and success of our states solar energy grid. The results of this action were both predictable and devastating. In the year since that policy was revoked, new solar installations in California have dropped by about 80%. In addition, an estimated 17,000 direct jobs in the solar industry have been lost, while solar business bankruptcies are increasing at a rate not seen in the evolution of the industry in California.

It’s painful to consider how many projects, big and small, have been lost since April, and how many more will be if we don’t course correct.

For more than two decades, the evolution of solar energy has been an honorable agreement between our government and its citizens. Households and businesses agree to invest time, energy and resources to add solar panels. In return, our government provides incentives to these investors. Most critically, it offers the possibility of a fair return for energy beyond our own use that is shared with the electric grid to support its reliability and benefit our fellow Californians.

By early 2023, California has more than 43,000 megawatts of total solar installed on 1.9 million installations, more than any other state by a wide margin.

This program benefited everyone, despite some criticism that only middle- and upper-class landed Californians reaped the benefits. As with all supply and demand dynamics, greater energy supply means lower costs for everyone on the grid, regardless of socioeconomic status. Beyond that, California has specific programs that benefit disadvantaged communities and individuals, such as one that offers a 20% reduction on their electricity bill to lower-income residents.

Economically, the compact between the government and its citizens resulted in the creation of approximately 78,000 new direct jobs and more than 2,000 new direct businesses throughout California, not to mention the employers and employees who have benefited from the ‘positive impact on the wider energy supply chain and varied supporting companies. This dynamic produces economic ripples that exponentially raise many across the state and beyond.

Defying all reason, this very policy is what the commission chose to eviscerate.

Expanding the solar grid has benefits

We’ve seen firsthand the incredible benefits of expanding California’s solar grid. As we continue to build our ocean research and technology campus, AltaSea installed over 4 hectares of solar on our rooftops. Those 4,753 panels generate enough electricity to power the entire 35-acre campus, from concrete 3D printing and carbon sequestration to regenerative aquaculture and education programs, and still sends additional power to the grid. This would not have been possible without the support of the states.

This is truly the best of both worlds, allowing us to accelerate collaboration to advance sustainable and climate-positive technologies while remaining a net zero emissions operation.

The facts are clear: This should be an obvious investment for our state’s policy makers to continue and grow.

The decision seems incredibly short-sighted and the consequences are not insignificant. All the benefits of the once thriving program are now in dire jeopardy. The damage is not just financial, but a blow to our decades-long fight for cleaner air and a missed opportunity in our states’ efforts to slow the progress of climate change. which has become a real and present danger to Californians. We now face wildfires and ferocious storms that cause loss of life and quality of life far too often and at a more intense rate.

It’s a simple equation that we must reduce emissions to combat air pollution and climate change in our state through a diverse and reliable portfolio of alternative energy sources. Solar energy is a pillar of this comprehensive energy strategy. If it is not strong, efficient and reliable, we will lose potential emission reductions and risk long-term dependence on fossil fuels. In a battle between economic and environmental benefit, solar energy proves to be a false choice, offering a significant positive impact on both important goals.

If the saying As goes California, so goes the nation remains true, this decision by the California Public Utilities Commission spells trouble for the future of our country. It is the political equivalent of paving paradise to put in a parking lot. By discouraging the introduction of clean energy into our grid, California is losing momentum in our efforts to move away from fossil fuels.

California has always led by example. Now is the time to set another good example by admitting that this policy was a mistake and reversing it as soon as possible.

Matt Horton is a Senior Advisor at Milken Institute Finance. He is also a member of AltaSea’s board. Terry Tamminen is a former secretary of CalEPA under Governor Arnold Schwarzenegger and current president and CEO of AltaSea at the Port of Los Angeles.