Podcast Summary: Boiling Point – The Great Rooftop Solar Debate

Episode Information:

• Title: The Great Rooftop Solar Debate
• Host: Sammy Roth, LA Times Studios
• Release Date: March 27, 2025
• Description: This episode delves into the contentious debate surrounding rooftop solar installations in California, featuring perspectives from industry leaders and energy economists.

Introduction

In this episode of Boiling Point, host Sammy Roth tackles the heated debate over rooftop solar installations in California. With over two million solar installations statewide, rooftop solar panels are a significant source of climate-friendly electricity. However, the incentives supporting these installations, particularly through the net metering program, have sparked intense disagreements among stakeholders.

Background on Rooftop Solar in California

California boasts approximately two million solar installations, ranging from residential rooftops to large parking lots and warehouses. Rooftop solar is lauded for being clean, local, and cost-saving for users. However, the net metering program, which compensates solar panel owners at retail rates for the electricity they generate, has become increasingly controversial over the past 11 years.

Sammy Roth sets the stage by highlighting two primary camps in the rooftop solar debate:

• Pro-Rooftop Solar: Solar companies and environmental groups advocating for rooftop solar as the optimal climate solution.
• Critics of Rooftop Solar Incentives: Economists, state regulators, and some environmentalists arguing that rooftop solar is costlier than utility-scale solar farms and leads to higher electric bills for non-solar customers.

Net Metering and Cost Shift Debate

Brad Hevner's Perspective ([00:34]): Brad Hevner, Executive Director of the California Solar and Storage Association, argues that the reduction in net metering incentives by Governor Gavin Newsom's appointees has severely impacted the rooftop solar industry. He cites significant job losses—17,000 solar jobs—and the bankruptcy of major solar companies like SunPower Global Solar Pioneer. Hevner contends that the abrupt policy change has halved the expected solar adoption rate, hindering California's climate goals.

“We’re in a climate crisis. We need more solar. And the state should really be making sure that the background policies are such that there’s a good opportunity for a wide market for solar.”
— Brad Hevner [00:38]

Severin Borenstein's Counterpoint ([06:50]): Severin Borenstein, an energy economist at UC Berkeley, disputes the notion that rooftop solar has been "killed" by policy changes. He acknowledges the initial setback but points out that new installations have rebounded to 2019 levels. Borenstein suggests that the market has stabilized and that the industry's growth is now more sustainable.

“If you just look at new systems, they’re back to 2019 levels.”
— Severin Borenstein [07:00]

Perspectives from Brad Hevner

Hevner emphasizes the negative impact of the net metering policy change on the solar industry, highlighting:

• Economic Shock: The sudden shift disrupted the relationship between solar customers and utility companies.
• Job Losses: The industry has seen a significant reduction in solar-related employment.
• Market Contraction: The expected growth in solar adoption has not materialized, with installation rates remaining stagnant.

Hevner criticizes Borenstein for allegedly dismissing the ongoing struggles of the solar industry and accuses him of having a pro-utility bias.

“You have a fiduciary responsibility to shareholders to spend more money on the grid. This is a perverse incentive, and it’s logical that they would fight against customer solar.”
— Brad Hevner [19:43]

Perspectives from Severin Borenstein

Borenstein challenges Hevner’s claims by arguing that:

• Temporary Surge: The apparent decline in solar installations is partly due to a temporary surge before the policy change.
• Market Realignment: The industry is adjusting to more sustainable growth levels, moving beyond inflated figures.
• Cost Efficiency: Grid-scale solar is less expensive, and the current level of rooftop solar may be optimal given its higher costs.

He also disputes the notion that utility companies are actively trying to undermine rooftop solar, pointing out that publicly owned utilities have higher solar adoption rates compared to investor-owned utilities.

“If you just look at new systems, they’re back to 2019 levels. Now we can debate what the right level is.”
— Severin Borenstein [07:00]

The Heated Debate

The conversation becomes increasingly tense as Hevner and Borenstein present conflicting data and interpretations:

• Job Market Impact: Hevner asserts severe job losses, while Borenstein contends that employment trends were already downward before policy changes.
• Cost Shift: Hevner denies the existence of a cost shift, claiming solar reduces overall rates, whereas Borenstein maintains that there is a measurable cost shift impacting non-solar customers.
• Utility Intentions: Hevner accuses Borenstein of siding with utilities, suggesting a bias, while Borenstein clarifies his objective stance based on economic analysis.

“This is utility versus solar. That’s true. It’s fair.”
— Brad Hevner [21:08]

“If we keep harping on how the utilities are trying to beat up on rooftop solar… it’s part of the machine.”
— Severin Borenstein [21:59]

Common Ground and Solutions

Despite their disagreements, both participants acknowledge the complexity of regulating utilities and the need for independent, unbiased analysis. They touch upon the following points:

• Regulatory Challenges: Hevner calls for more rigorous auditing of utility expenditures and greater independence for regulators.
• Shared Goals: Both agree on the necessity of advancing clean energy solutions to combat climate change, though they diverge on the methods and policies to achieve this.

“We need to keep trying. We don’t have a choice.”
— Brad Hevner [45:26]

Conclusion

The episode concludes without a resolution, highlighting the deep ideological and factual divides within the rooftop solar debate in California. Sammy Roth underscores the importance of continued dialogue and collaboration to advance clean energy goals despite the contentious disagreements.

“My biggest takeaway is that people who care about the climate crisis should stop fighting and start working together.”
— Brad Hevner [45:30]

Notable Quotes

• Brad Hevner:
  “The relationships between solar customers and the utilities changed abruptly, causing a shock to the market and the industry.” ([04:56])

• Severin Borenstein:
  “Grid-scale solar being big solar farm, those big solar farms are more cost-effective than rooftop installations.” ([10:42])

• Brad Hevner:
  “Utilities are acting rationally… their profits are tied to the amount that they spend on the electric grid.” ([19:43])

• Severin Borenstein:
  “We pay for the extra costs of rooftop solar through our electric bills, disproportionately hurting poor people.” ([32:46])

Key Takeaways

• Rooftop Solar's Role: While rooftop solar is essential for clean energy, its optimal contribution and funding mechanisms remain hotly debated.
• Economic Impacts: Policy changes significantly affect the solar industry's job market and growth trajectory.
• Utility Regulation: Effective regulation and independent analysis are crucial to balance the interests of solar adopters, non-solar customers, and utility companies.
• Need for Collaboration: Bridging ideological and factual divides is imperative for advancing California's climate and energy objectives.

For More Information: To delve deeper into the perspectives discussed in this episode, refer to Brad Hevner's latest column titled "California's Rooftop Solar Infighting is a Colossal Waste of Time," available here.