California approves plan to cut payments to solar homes for energy sent to grid
robypangy/iStock via Getty Images

California utility regulators on Thursday unanimously approved a plan that lowers how much utilities pay households that install new rooftop solar panels and send energy back to the grid.
The policy, which the California Public Utilities Commission proposed last month, changes whatâs known as "net metering" to offer fewer credits to solar owners for surplus power in comparison with what utilities would pay for other sources of clean energy.
Existing rooftop solar customers aren't affected by the new plan, which adds credits for solar systems that are attached to battery storage.
The batteries let homes build up a reserve of excess power when demand is low during the day. When demand is higher at night, the battery would supply household electricity and transmit power to the grid. 
âThe updated billing structure of the tariff is designed to optimize grid use by the tariffâs customers and incentivize adoption of combined solar and storage systems,â according to a decision by the commissionâs administrative law judge. âThese changes will help meet Californiaâs climate goals and increase reliability, while promoting affordability across all income levels.â
Solar companies said the controversial net metering system was a necessary incentive to install rooftop panels and help the environment.
California utilities have argued that the rooftop solar program was antiquated because they have had to pass on the costs of subsidies to customers, unfairly charging millions of others without solar panels such as lower-income households.
âCalifornia is poised to unlock the next phase of our ambitious climate change agenda, and this decision is part of that,â Alice Reynolds, president of the commission, said in a statement. âWeâre building a powerhouse of clean energy storage for grid use in the evening.â
Relevant tickers include (NASDAQ:RUN), (NASDAQ:SPWR), (NYSEARCA:TAN), (NASDAQ:FSLR) (NYSE:NOVA), (NASDAQ:ENPH), (NYSE:PCG), (NYSE:EIX), (NYSE:SRE), (NASDAQ:ARRY), (NASDAQ:CSIQ), (NASDAQ:FTCI), (NASDAQ:MAXN), (NASDAQ:SEDG) and (NASDAQ:SHLS)