Does My Neighbor’s Solar Make My Bill Higher? A New Study Says No
Some critics of solar claim that a homeowner rooftop solar drives up electricity costs for everyone else. A recent California debate placed the blame for rising rates on solar customers, suggesting they create an unfair “cost shift.” Utilities argued solar users received billions in benefits that non-solar customers covered. However, a new study found the opposite: rooftop solar delivered a net benefit of $1.5 billion to ratepayers last year.
Where Did the “Cost Shift” Claim Come From?
Utilities counted each kilowatt-hour generated and used on-site as a lost sale. In other words, they assumed that if someone doesn’t buy electricity from the grid, it’s an expense the utility must pass along to everyone else. The study says this logic is flawed because the utility isn’t spending extra money to generate that solar power in the first place. If anything, rooftop solar reduces strain on the grid, preventing utilities from building as many large powerlines or plants.
The Real Savings
Once those so-called “lost sales” were removed from the equation, billions of dollars dropped off the supposed price tag. Factoring in the infrastructure savings solar provides—like less wear on powerlines—led to an overall benefit, rather than a cost.
Why Rates Are Actually Going Up
California’s electricity rates have risen significantly over the last 20 years, mostly due to major utility investments in large-scale projects. Instead of solar being the culprit, the study suggests that expensive grid upgrades contribute far more to customer bills.
What It Means for You
Though this debate took place in California, the principle is clear: one homeowner’s solar installation can help everyone by cutting the need for expensive new power resources. Rather than raising bills, rooftop solar may actually help control them.
Curious if solar might lower your costs here in Colorado?
Visit our custom quote page to see your potential savings at a glance. Or call 970-SUNDOGS to learn how rooftop solar—with a built-in battery—keeps energy affordable and reliable, no matter who else in your neighborhood goes solar.
