Tesla CEO Elon Musk has slammed California’s plan for homeowners who use solar panels in their homes. The proposal calls for a discounted rate for excess power sold into the grid, as well as a monthly utility charge of $8 per kW to cover the cost of maintaining the state’s power infrastructure. Musk noted that the idea, which essentially penalizes sustainable energy, is “insane.” //

With battery storage systems, the PUC noted that excess power generated by solar panels could be held in reserve by the homeowners themselves instead of being sold back to the grid. The PUC also argued that the current system essentially translates to a multi-billion subsidy for wealthy homeowners that other utility ratepayers are paying for. //

According to the PUC, a review of its policy has revealed that its current systems are not cost-effective since homeowners with no solar panels are shouldered with the price of maintaining the grid. Unfortunately, most of the said ratepayers were from lower-income households. And considering that ratepayers from the state spent about $3 billion a year to support net metering, PUC Commissioner Martha Guzman Aceves noted that the funds are better used elsewhere.