May 1, 2018 | By RGR Marketing Blog

What Pending California Energy Legislation Could Do To Your Solar Business

The legislation stalled out last year, but at any point, the California Legislature could take up the issue of whether the state’s electrical grid should go 100% renewable by 2045. Hawaii has already done so, albeit with much less energy consumption and a much smaller carbon footprint to deal with.

So could California actually pull off a complete conversion to a 100% renewable grid by 2045 if the legislation does go through this year? A couple of record-breaking days for existing renewable infrastructure indicate that it is a definite possibility.

But what about the small business owners that rely on rooftop solar installations for their livelihood? What happens to those companies if the entire grid is renewable? If you’re a solar installation professional, this news will undoubtedly affect your California solar business; read on to learn exactly how.

Why This Solar Legislation Now?

As Forbes reported back in August, before a late-game withdrawal of support by one of the state’s biggest electrician unions shelved the legislation last year, Hawaii, California, and other similarly inclined states are taking up climate change remediation measures these days thanks in large part to the major shift in climate change policy coming from Washington.

The Trump administration’s complete reversal of President Obama’s stance on climate change may have had a chilling effect on renewables in some parts of the country, but in states like California, it has brought the issue home in a meaningful way. Powerful legislators are looking to position California as an example of what converting a major economy to an all-renewable grid might look like.

Solar Installation in a Post-100% Renewable Grid World

If the legislation does pass in some form, it will most likely mean a slow conversion over thirty years to a statewide all-renewable format that will de-incentivize many potential customers to go for rooftop solar.

After all, if a potential rooftop solar customer can get 100% carbon-free renewable energy from their local utility, it does take the sustainability incentive to install rooftop solar off the table.

That said, the positive environmental impact of purchasing a rooftop solar power generation system is only one part of the complex psychology that surrounds this major purchase.

Though the state may take the sustainability incentive off the table for individual households (and the potential tax breaks along with it—one would imagine), there are other reasons why it benefits your future prospects to install rooftop solar.

Keeping an Eye on an Inevitable Future for Solar Installation Professionals

Like it or not, the very factors that have propelled the growth of solar power in California are driving this potential legislation. The addressing of our fossil fuel consumption on a systemic level is bound to happen at some point.

Of course, there will still be room for savvy operators to continue to sell rooftop solar. But as city, state, and (eventually) the federal government adopts a position that includes conversion to grid-wide renewable energy, a shrinking of the private market may be inevitable. Either way, the news definitely warrants keeping an eye on.

 

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