CA Considers Taxing Solar Power Generation

California is considering a proposal by the state Public Utilities Commission to charge an 'exit tax,' proportional to the amount of power you generate, on electricity generated by means such as solar panels for your own use. I would expect a state like California to try and encourage the adoption of alternative power sources, but this seems a really odd way of doing it. Two groups have started lobbying against this tax. If passed, it sets a precedent that many fear will lead to similar taxes outside CA.

Comments

Not just solar power...

[SchnauzerGuy]

This proposed tariff doesn't just apply to solar power, but any kind of "off-grid" power generation:

"Customer Generation" as used in this order, incorporates the definition in the Joint Parties' Settlement Agreement. It refers to cogeneration, renewable technologies, or any other type of generation that (a) is dedicated wholly or in part to serve a specific customer's load; and (b) relies on non-utility or dedicated utility distribution wires rather than the utility grid

That means wind power, fuel cells, diesel generators, etc. are also covered. And since the settlement covers anything that reduced the customer's load, presumably even geo-thermal heating/cooling systems would be taxed.