As the reliance on solar energy increases in California, rooftop solar generation is leading to negative electricity prices. With over 47 gigawatts of installed solar power capacity, there is an excess of electricity on sunny days, causing economic concerns and a need to reduce installation rates. This challenge may slow down the transition to renewable energy in a state that is looking to increase its reliance on solar power.
One of the main disadvantages of solar power is that it is not always available, as it depends on sunlight. The “duck curve” effect, where there is a surplus of solar power during the day and a spike in demand in the evening, has become more pronounced in California in recent years. This has led to significant amounts of wasted solar power, prompting the state to rethink its approach to managing solar energy.
In response to this issue, California has made changes to its solar power compensation system, reducing payments to owners of rooftop solar panels. The state now only compensates for the value of electricity supplied to the grid, which can decrease significantly during times of surplus solar power. This has led to a decrease in solar installations and opposition from both consumers and solar power companies.
Other states such as Nevada and Hawaii are also experiencing similar challenges as they increase their reliance on