Clean-energy exports to China not affected by controls

California Rooftop Solar Cost Shift examines PG&E rate hikes, net metering changes, and utility infrastructure spending impacts on low-income households, distributed generation, and clean energy adoption, potentially raising bills and undermining grid resilience.

Key Points

A claim that rooftop solar shifts fixed grid costs to others; critics cite PG&E rates, avoided costs, and impacts.

✅ PG&E rates outpace national average, underscoring cost drivers.

✅ Net metering cuts risk burdening low- and middle-income homes.

✅ Distributed generation avoids infrastructure spend and grid strain.

California is grappling with soaring electricity prices across the state, with Pacific Gas & Electric (PG&E) rates more than double the national average and increasing at an average of 12.5% annually over the past six years. In response, Governor Gavin Newsom issued an executive order directing state energy agencies to identify ways to reduce power costs. However, recent policy shifts targeting rooftop solar users may exacerbate the problem rather than alleviate it.

The "Cost Shift" Theory

A central justification for these pricing changes is the "cost shift" theory. This theory posits that homeowners with rooftop solar panels reduce their electricity consumption from the grid, thereby shifting the fixed costs of maintaining and operating the electrical grid onto non-solar customers. Proponents argue that this leads to higher rates for those without solar installations.

However, this theory is based on a flawed assumption: that PG&E owns 100% of the electricity generated by its customers and is entitled to full profits even for energy it does not deliver. In reality, rooftop solar users supply only about half of their energy needs and still pay for the rest. Moreover, their investments in solar infrastructure reduce grid strain and save ratepayers billions by avoiding costly infrastructure projects and reducing energy demand growth, aligning with efforts to revamp electricity rates to clean the grid as well.

Impact on Low- and Middle-Income Households

The majority of rooftop solar users are low- and middle-income households. These individuals often invest in solar panels to lower their energy bills and reduce their carbon footprint. Policy changes that undermine the financial viability of rooftop solar disproportionately affect these communities, and efforts to overturn income-based charges add uncertainty about affordability and access.

For instance, Assembly Bill 942 proposes to retroactively alter contracts for millions of solar consumers, cutting the compensation they receive from providing energy to the grid, raising questions about major changes to your electric bill that could follow if their home is sold or transferred. This would force those with solar leases—predominantly lower-income individuals—to buy out their contracts when selling their homes, potentially incurring significant financial burdens.

The Real Drivers of Rising Energy Costs

While rooftop solar users are being blamed for rising electricity rates, calls for action have mounted as the true culprits lie elsewhere. Unchecked utility infrastructure spending has been a significant factor in escalating costs. For example, PG&E's rates have increased rapidly, yet the utility's spending on infrastructure projects has often been criticized for inefficiency and lack of accountability. Instead of targeting solar users, policymakers should scrutinize utility profit motives and infrastructure investments to identify areas where costs can be reduced without sacrificing service quality.

California's approach to addressing rising electricity costs by targeting rooftop solar users is misguided. The "cost shift" theory is based on flawed assumptions and overlooks the substantial benefits that rooftop solar provides to the grid and ratepayers. To achieve a sustainable and equitable energy future, the state must focus on controlling utility spending, promoting clean energy access for all, especially as it exports its energy policies across the West, and ensuring that policies support—not undermine—the adoption of renewable energy technologies.

Related News

• Electricity Forum News

• Energy Policy News

Maple Ridge Lithium-Ion Battery Plant will be a $1B E-One Moli clean-tech facility in Canada, manufacturing high-performance cells for tools and devices, with federal and provincial funding, creating 450 jobs and boosting battery supply chains.

Key Points

A $1B E-One Moli facility in B.C. producing lithium-ion cells, backed by federal and provincial funding.

✅ $204.5M federal and up to $80M B.C. support committed

✅ E-One Moli to create 450 skilled jobs in Maple Ridge

✅ High-performance cells for tools, medical devices, and equipment

A lithium-ion battery cell production plant costing more than $1 billion will be built in Maple Ridge, B.C., Prime Minister Justin Trudeau and Premier David Eby jointly announced on Tuesday.

Trudeau and Eby say the new E-One Moli facility will bolster Canada's role as a global leader in clean technology, as recent investments in Quebec's EV battery assembly illustrate today.

It will be the largest factory in Canada to manufacture such high-performance batteries, Trudeau said during the announcement, amid other developments such as a new plant in the Niagara Region supporting EV growth.

The B.C. government will contribute up to $80 million, while the federal government plans to contribute up to $204.5 million to the project. E-One Moli and private sources will supply the rest of the funding. 

Trudeau said B.C. has long been known for its innovation in the clean-technology sector, and securing the clean battery manufacturing project, alongside Northvolt's project near Montreal, will build on that expertise.

"The world is looking to Canada. When we support projects like E-One Moli's new facility in Maple Ridge, we bolster Canada's role as a global clean-tech leader, create good jobs and help keep our air clean," he said.

"This is the future we are building together, every single day. Climate policy is economic policy."

Nelson Chang, chairman of E-One Moli Energy, said the company has always been committed to innovation and creativity as creator of the world's first commercialized lithium-metal battery.

E-One Moli has been operating a plant in Maple Ridge since 1990. Its parent company, Taiwan Cement Corp., is based in Taiwan.

"We believe that human freedom is a chance for us to do good for others and appreciate life's fleeing nature, to leave a positive impact on the world," Chang said.

"We believe that [carbon dioxide] reduction is absolutely the key to success for all future businesses," he said.

The new plant will produce high-performance lithium-cell batteries found in numerous products, including vacuums, medical devices, and power and gardening tools, aligning with B.C.'s grid development and job plans already underway, and is expected to create 450 jobs, making E-One Moli the largest private-sector employer in Maple Ridge.

Eby said every industry needs to find ways to reduce their carbon footprint to ensure they have a prosperous future and every province should do the same, with resource plays like Alberta's lithium supporting the EV supply chain today.

It's the responsible thing to do given the record wildfires, extreme heat, and atmospheric rivers that caused catastrophic flooding in B.C., he said, with large-scale battery storage in southwestern Ontario helping grid reliability.

"We know that this is what we have to do. The people who suggest that we have to accept that as the future and stop taking action are simply wrong."

Trudeau, Eby and Chang toured the existing plant in Maple Ridge, east of Vancouver, before making the announcement.

The prime minister wove his way around several machines and apologized to technicians about the commotion his visit was creating.

The Canadian Taxpayers Federation criticized the federal and B.C. governments for the announcement, saying in a statement the multimillion-dollar handout to the battery firm will cost taxpayers hundreds of thousands of dollars for each job.

Federation director Franco Terrazzano said the Trudeau government has recently given "buckets of cash" to corporations such as Volkswagen, Stellantis, the Ford Motor Company and Northvolt.

"Instead of raising taxes on ordinary Canadians and handing out corporate welfare, governments should be cutting red tape and taxes to grow the economy," said Terrazzano. 

Construction is expected to start next June, as EV assembly deals put Canada in the race, and the company plans for the facility to be fully operational in 2028.

Related News

• Electricity Forum News

• EV Infrastructure News

Ontario Electricity Capacity Gap threatens reliability as IESO forecasts shortfalls from the Pickering shutdown and rapid electrification, requiring new low-emission nuclear generation to meet net-zero targets, maintain baseload, and stabilize the grid.

Key Points

Expected 2030 shortfalls from Pickering closure and electrification, requiring new low-emission nuclear to meet net-zero.

✅ IESO projects a 3.6-9.5 GW capacity gap by 2030

✅ Pickering shutdown removes baseload, stressing reliability

✅ New low-emission nuclear needed to meet net-zero targets

Ontario faces an electricity supply shortage and reliability risks in the next four to eight years and will not meet net-zero objectives without building new low-emission, nuclear generation starting as soon as possible, according to a report released yesterday by the Power Workers' Union (PWU). The capacity needed to fill the expected supply gap will be equivalent to doubling the province's planned nuclear fleet in eight years.

The planned closure of the Pickering nuclear power plant in 2025 and the increase in demand from electrification of the economy are the drivers behind a capacity gap in 2030 of at least 3.6 GW which could widen to as much as 9.5 GW, Electrification Pathways for Ontario to Reduce Emissions, finds. Ontario's Independent Electricity System Operator (IESO) has since 2013 been forecasting a significant gap in the province's electricity supply due the closure of Pickering, but has been underestimating the impact of electrification, the report says.

In addition, the electrification of buildings, transport and industry sectors that will be needed to achieve goals of net-zero emissions by 2050 that being set by the federal government and civil society will see the province's electricity demand increase by at least 130% over current planning forecasts, and potentially by over 190%. Leveraging electricity, natural gas and hydrogen synergies can reduce supply needs, but 55 GW of new electricity capacity, including new large-scale nuclear plants, will still be needed by 2050 - four times Ontario's current nuclear and hydro assets - the report finds.

These findings underscore the urgent need for a paradigm shift in Ontario's electricity planning and procurement process, the authors say, adding that immediate action is needed both to mitigate the system reliability risks and enable the significant societal benefits needed to pursue net-zero objectives. Planning for procurement to replace Pickering's capacity, or to pursue life extension options, must begin as soon as possible.

"Policymakers around the world realise climate change can't be tackled without nuclear. Ontario's nuclear fleet has delivered emissions reductions for over 50 years," PWU President Jeff Parnell said. "In fact, without building new nuclear units, Ontario will miss its emission reduction targets and carbon emissions from electricity generation will rise dramatically, as explored in why Ontario's power could get dirtier today."

"This report clearly shows that Ontario cannot sustain the low-carbon status of its hydro and nuclear-based electricity system, decarbonise its economy and meet its carbon reduction targets without new nuclear or continued operation at Pickering in the near term. Most disturbing is the fact that we are already well behind and needed to start planning for this capacity yesterday," he said.

The six operating Candu reactors at Ontario Power Generation's Pickering plant have been kept in operation to provide baseload electricity during the refurbishment of units at the Darlington and Bruce plants. Currently, the company plans to shut down Pickering units 1 and 4 in 2024 and units 5 to 8 in 2025, even as Ontario moves to refurbish Pickering B to extend life.

Related News

• Electricity Forum News

• Power Generation News

Nova Scotia Biomass Energy faces scrutiny as hydropower from Muskrat Falls via the Maritime Link increases, raising concerns over carbon emissions, biodiversity, ratepayer costs, and efficiency versus district heating in the province's renewable mix.

Key Points

Electricity from wood chips and waste wood in Nova Scotia, increasingly questioned as hydropower from the Maritime Link grows.

✅ Hydropower deliveries reduce need for biomass on the grid

✅ Biomass is inefficient, costly, and impacts biodiversity

✅ District heating offers better use of forestry residuals

The Ecology Action Centre's senior wilderness coordinator is calling on the Nova Scotia government to reduce the use of biomass to generate electricity now that more hydroelectric power is flowing into the province.

In 2020, the government of the day signed a directive for Nova Scotia Power to increase its use of biomass to generate electricity, including burning more wood chips, waste wood and other residuals from the forest industry. At the time, power from Muskrat Falls hydroelectric project in Labrador was not flowing into the province at high enough levels to reach provincial targets for electricity generated by renewable resources.

In recent months, however, the Maritime Link from Muskrat Falls has delivered Nova Scotia's full share of electricity, and, in some cases, even more, as the province also pursues Bay of Fundy tides projects to diversify supply.

Ray Plourde with the Ecology Action Centre said that should be enough to end the 2020 directive.

Ray Plourde is senior wilderness coordinator for the Ecology Action Centre. (CBC)
Biomass is "bad on a whole lot of levels," said Plourde, including its affects on biodiversity and the release of carbon into the atmosphere, he said. The province's reliance on waste wood as a source of fuel for electricity should be curbed, said Plourde.

"It's highly inefficient," he said. "It's the most expensive electricity on the power grid for ratepayers."

A spokesperson for the provincial Natural Resources and Renewables Department said that although the Maritime Link has "at times" delivered adequate electricity to Nova Scotia, "it hasn't done so consistently," a context that has led some to propose an independent planning body for long-term decisions.

"These delays and high fossil fuel prices mean that biomass remains a small but important component of our renewable energy mix," Patricia Jreiga said in an email, even as the province plans to increase wind and solar projects in the years ahead.

But to Plourde, that explanation doesn't wash.

The Nova Scotia Utility and Review Board recently ruled that Nova Scotia Power could begin recouping costs of the Maritime Link project from ratepayers. As for the rising cost of fossil fuels, Ploude noted that the inefficiency of biomass means there's no deal to be had using it as a fuel source.

"Honestly, that sounds like a lot of obfuscation," he said of the government's position.

No update on district heating plans
At the time of the directive, government officials said the increased use of forestry byproducts at biomass plants in Point Tupper and Brooklyn, N.S., including the nearby Port Hawkesbury Paper mill, would provide a market for businesses struggling to replace the loss of Northern Pulp as a customer. Brooklyn Power has been offline since a windstorm damaged that plant in February, however. Repairs are expected to be complete by the end of the year or early 2023.

Ploude said a better use for waste wood products would be small-scale district heating projects, while others advocate using more electricity for heat in cold regions.

Although the former Liberal government announced six public buildings to serve as pilot sites for district heating in 2020, and a list of 100 other possible buildings that could be converted to wood heat, there have been no updates.

"Currently, we're working with several other departments to complete technical assessments for additional sites and looking at opportunities for district heating, but no decisions have been made yet," provincial spokesperson Steven Stewart said in an email.

Related News

• Electricity Forum News

• Power Generation News

BC Hydro COVID-19 Relief Fund enables small businesses to waive electricity bills for commercial properties during the pandemic, offering credits, rate support, and applications for eligible customers forced to temporarily close.

Key Points

A program that lets eligible small businesses waive up to three months of BC Hydro bills during COVID-19 closures.

✅ Eligible small general service BC Hydro accounts

✅ Up to 3 months of waived electricity charges

✅ Must be temporarily closed due to the pandemic

Businesses are taking advantage of a BC Hydro relief fund that allows electricity bills for commercial properties to be waived during the COVID-19 pandemic.

More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months, while Ontario rate reductions are taking effect for businesses under separate measures. 

“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small businesses in the province will be eligible for the program.”

The program builds off a similar initiative BC Hydro launched last week for residential customers who have lost employment or income because of COVID-19, and parallels Ontario's subsidized hydro plan introduced to support ratepayers. So far, 57,000 B.C. residents have applied for the relief fund, which amounts to an estimated $16 million in credits, amid scrutiny over deferred BC Hydro operating costs reported by the auditor general.

Electricity use across B.C. has plummeted since the outbreak began. 

According to BC Hydro, daily consumption has fallen 13% in the first two weeks of April, aligning with electricity demand down 10% reports, compared to the three-year average for the same time period.

Electricity use has fallen 30% for recreation facilities, 29% in the restaurant sector and 27% in hotels, while industry groups such as Canadian Manufacturers & Exporters have supported steps to reduce prices. 

For more information about the COVID-19 Relief Fund and advice on avoiding BC Hydro scam attempts, go to bchydro.com/covid19relief.

Related News

• Electricity Forum News

• T&D Business News

Nova Scotia Power solar charge proposes an $8/kW monthly system access fee on net metering customers, citing grid costs. UARB review, carbon credits, rate hikes, and solar industry impacts fuel political and consumer backlash.

Key Points

A proposed $8/kW monthly grid access fee on net metered solar customers, delayed to Feb 1, 2023, pending UARB review.

✅ $8/kW monthly system access fee on net metering

✅ Delay to Feb 1, 2023 after industry and political pushback

✅ UARB review; debate over grid costs and carbon credits

Nova Scotia Power has pushed back by a year the start date of a proposed new charge for customers who generate electricity and sell it back to the grid, following days of concern from the solar industry and politicians worried that it will damage the sector.

The company applied to the Nova Scotia Utility and Review Board (UARB) last week for various changes, including a "system access charge" of $8 per kilowatt monthly on net metered installations, and the province cannot order the utility to lower rates under current law. The vast majority of the province's 4,100 net metering customers are residential customers with solar power, according to the application. 

The proposed charge would have come into effect Tuesday if approved, but Nova Scotia Power said in a news release Tuesday it will change the date in its filing from Feb. 1, 2022, to Feb. 1, 2023.

"We understand that the solar industry was taken off guard," utility CEO Peter Gregg said in an interview.

"There could have been an opportunity to have more conversations in advance."

Gregg said the utility will meet with members of the solar industry over the next year to work on finding solutions that support the sector's growth, while addressing what NSP sees as an inequity in the net metering system.

NSP recognized that customers who choose solar invest a significant amount and pay for the electricity they use, but they don't pay for costs associated with accessing the electrical grid when they need energy, such as on cold winter evenings when the sun is not shining.

"I know that's hit a nerve, but it doesn't take away the fact that it is an issue," Gregg said.

He said this is an issue utilities are navigating around North America, where seasonal rate designs have sparked consumer backlash in New Brunswick, and NSP is open to hearing ideas for other models of charges or fees.

The utility's suggested system access charge closely resembles one proposed in California, which has also raised major concerns from the solar industry and been criticized by the likes of Elon Musk, and has parallels to Massachusetts solar demand charges as well.

Although the "solar profile" of Nova Scotia and California is very different, with far more solar customers in that state, and in other provinces such as Saskatchewan, NDP criticism of 8% hikes has intensified affordability debates, Gregg said the fundamental issues are the same.

For those with a typical 10-kilowatt solar system, which generates around $1,800 of electricity a year, the new charge would mean those customers would be required to pay $960 back to NSP. That would roughly double the length of time it takes for those customers to pay off their investment for the panels.

David Brushett, chair of Solar Nova Scotia, said he relayed concerns from solar installers and others in the industry to Gregg on Monday. 

Brushett said the year delay is a positive first step, but he is still calling on the province to take a strong stance against the application, which has led to customers cancelling their panel installations and companies considering layoffs.

"There's still an urgency to this situation that hasn't been addressed, and we need to kind of protect the industry," he said Tuesday.

NSP's original application proposed exempting net metering customers who enrolled before Feb. 1, 2022, from the charge for 25 years after they sign up. But any benefit would be lost if those customers sold their home, and the exemption wouldn't extend to the new buyers, said Brushett.

Carbon offsets missing from equation: industry
Brushett said NSP "completely ignored" the fact that it's getting free carbon offset credits from homeowners who use solar energy under the provincial cap and trade program.

If the net metering system continues as is, NSP has said non-solar customers would pay about $55 million between now and 2030. That number assumes about 2,000 people sign up for net metering each year over the next nine years.

When asked whether those carbon emission credits were factored into the calculations for the proposed charge, Gregg said, "I don't believe in the current structure it is, but it's something that certainly we'd be open to hearing about."

Brushett said his group is finalizing a legal response to NSP's proposal and has already filed an official complaint against the company with the UARB.

Base charge on actual electrical output: customer
At least one shareholder in NSP parent company Emera is considering selling his shares in response to the application.

Joe Hood, a shareholder from Middle Sackville, said the proposed charge won't apply to his existing 11.16-kilowatt solar system, but if it did, it would cost him $1,071 a year.

"I am offended that a company I would invest in would do this to the solar industry in Nova Scotia," he said.

According to his meter, Hood said he pushed 9,600 kilowatt hours of solar electricity to the grid last year— some only for a brief period, and all of which was used by his home by the end of the year.

Under the proposed charge, someone with one solar panel who goes away on vacation in the summer would push all their electricity to the grid, and be charged far less than someone with 10 panels who has used all their own power and hasn't pushed anything.

"Nova Scotia Power's argument is that it's an issue with the grid. Well, then it should be based on what touches the grid," Hood said.

Far from actually making the system fair for everyone, Hood said this charge places solar only in the hands of the super-rich or NSP, with projects like its community solar gardens in Amherst, N.S.

Green Party suggests legislation update
Nova Scotia's Green Party also said Tuesday that Gregg's arguments of fairness are misleading, echoing earlier premier opposition to a 14% hike on rates.

The party is calling for an update to the Electricity Act that would "prevent penalizing any activity that helps Nova Scotia reach its emissions target," aligning with calls to make the electricity system more accountable to residents.

In its application, NSP has also asked to increase electricity rates for residential customers by at least 10 per cent over the next three years, amid debate that culminated in a 14% rate hike approval by regulators. 

The company wants to maintain its nine per cent rate of return.

NSP expects to earn $153 million this year, $192 million in 2023, and $213 million in 2024 from its rate of return. 

Related News

• Electricity Forum News

• Renewable Energy News