Only 18 Percent of Californians Can Afford to Buy a Home
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Los Angeles Times
15 hours ago
- Los Angeles Times
Why California's Electricity Bills Keep Rising: The Hidden Cost of Rooftop Solar Subsidies
Californians pay the second-highest electricity rates in the nation. A growing body of evidence has concluded that the No. 1 driver of higher bills is a decades-old policy that forces customers to pay for their neighbors' rooftop solar systems. The program, known as Net Energy Metering (NEM), was created in the 1990s to jumpstart rooftop solar adoption by allowing homeowners to sell excess solar power back to the grid at full retail rates. Back then, the incentives were a powerful tool to promote clean energy. But today, that same policy is driving up electricity bills for the 10 million Californians who don't have rooftop solar – especially lower-income renters and inland households. Source: CA Public Advocates Office According to the California Public Advocates Office, this cost shift was $8.5 billion in 2024 alone, up from $3.4 billion just three years ago. Households without solar now pay as much as 27% more on their electricity bills to cover the subsidies provided to about 1.6 million solar-equipped homes. The core issue lies in how rooftop solar users are compensated. Most rooftop solar customers receive bill credits at or near the full retail price for every kilowatt-hour they export — despite the fact that the actual value of that power to the grid is far lower. While utilities might pay around 5 to 6 cents per kilowatt-hour to buy electricity elsewhere, they're paying solar users 30 to 40 cents, even during times of day when that energy is least needed. (source) And it's not just about what they export. Solar customers also use less electricity from the grid, which means they contribute less to fixed infrastructure costs even though those fixed costs do not change with electricity usage – like transmission lines, wildfire safety work and low-income subsidies – that all users rely on. That shortfall is made up by charging everyone else more. Source: Blue Sky Consulting Group A recent analysis found that the solar cost shift now accounts for 14.2% of the average residential electric bill for customers of PG&E, SCE, and SDG&E – more than the share of wildfire mitigation or renewable energy requirements. Part of what's making the problem worse is that rooftop solar has become far more common and affordable. Solar adoption among homeowners has skyrocketed, especially in higher-income, coastal, and suburban communities. From 2014 to 2024, rooftop solar capacity more than quadrupled. At the same time, the payback period for new solar systems has shrunk to just 4 to 5 years, yet the subsidies last for up to 20 years. This means rooftop solar customers are essentially making a profit for 15 years that their neighbors are paying for in higher electricity bills. The cost shift is not only an affordability crisis – it's also an equity and climate issue. Research shows that solar households tend to be disproportionately wealthier and whiter, while those who pay the most under the current system are more likely to be renters, seniors, and low-income families. In inland regions like the Central Valley and the High Desert, some households now spend 10% or more of their income on electricity. (source) Higher rates also undermine California's climate strategy. Electrification – switching from gas to electric vehicles, heat pumps, and stoves – is a cornerstone of the state's decarbonization plan. But as electricity prices rise, it becomes less economically feasible for households to make that switch. (report) In Sacramento, there have been efforts to fix this outdated system and provide millions of Californians with relief. And it comes at a time when the legislature has prioritized California's affordability crisis. Assemblymember Lisa Calderon, who represents communities in Los Angeles County, introduced AB 942 to update the NEM system. In her district, an estimated 92% of constituents don't have rooftop solar and pay to subsidize others' systems. The bill would ensure that rooftop solar users continue receiving substantial subsidies – between 76% to 82% of what they're receiving now – while providing some relief to the 10 million non-rooftop solar customers who keep paying more. The reaction from the solar industry was swift, levying false attacks that this legislation would break contracts – the NEM tariff is a rate structure established by the CPUC, not a contract between customers and the state or their utility companies. The industry also claimed that this would profit utility companies, which is also untrue because it's customers who would see the savings. (source) But the true reason for their opposition is more obvious – fixing this system would hit their bottom line by reducing the extra costs that non-rooftop solar customers pay to subsidize this program. In 2022, the California Public Utilities Commission (CPUC) updated the rules for new solar customers under a program called the Net Billing Tariff, which ties compensation more closely to the actual value of the energy provided. But those changes don't affect the 1.6 million households still enrolled under NEM 1.0 and 2.0, who will continue receiving premium subsidies for up to two decades. The result: the cost shift will continue growing for years to come unless further policy changes are made. Critics argue that reform is overdue – not to punish solar adopters, but to modernize outdated incentives in a way that's fair to all Californians.
Los Angeles Times
4 days ago
- Los Angeles Times
Leaving Las Vegas! Fewer Californians are visiting Sin City. Here's what the number say
If you spend any time on social media, it's hard to avoid the scorching hot takes about Las Vegas' recent financial struggles. Vegas critics say the exorbitant resort fees are brutal, the ever-increasing parking costs are punishing, the comps are few and far between — and did you notice the buffets are vanishing? In short, Vegas is on a losing streak. After fighting to bounce back from COVID-19 closures, Sin City is facing financial headwinds as fewer people, particularly Californians, are visiting, playing and ultimately spending money. My colleague Terry Castleman dived into some theories, but also, as Terry does well, dug into the numbers to tell the tale of Vegas' sudden crap out. Visits to Las Vegas were down 11.3% in June 2025 versus a year earlier, according to data from the Las Vegas Convention and Visitors Authority. Traffic on Interstate 15 at the California-Nevada border was down 4.3% over the same period, suggesting fewer visitors doing road trips from the Golden State to Vegas casinos. The number of air travelers into Las Vegas overall declined 6.3% over the previous June. In 2024, Californians made up more than a fifth of air travelers into Vegas, with nearly half of those coming from the Los Angeles metro area. A demographic report from the visitors authority estimated that Southern California provided 30% of all visitors to the city in 2024. Add it all up, and Californians could be responsible for a significant portion of the decline in Vegas tourism. Tourism within the U.S. is only part of the picture, though, as experts previously predicted we are also seeing a slump in international tourism to the U.S. The convention and visitors authority estimates that 12% of the city's visitors are international. A report from the World Travel and Tourism Council projected that the U.S. would lose $12.5 billion in international travel spending in 2025. 'While other nations are rolling out the welcome mat, the U.S. government is putting up the 'closed' sign,' Julia Simpson, the council's president, said in a statement. The report cited air-travel booking data from March that showed a 15% to 20% drop in expected travel from major tourism sources, including the United Kingdom, Germany and Canada. Visitors from Canada and Mexico made up more than half of international visitors to Las Vegas in 2024, according to data from the visitors authority. But President Trump's talk of making Canada the 51st state and his decision to hit Canada with tariffs have not endeared him to Canadian travelers. Meanwhile, media overseas have been bombarded with stories of capricious denials and detentions of travelers at U.S. border crossings. Apparently, Mexican and Canadian tourists are not feeling so welcome in the U.S. these days. 'Las Vegas thrives on tourism,' Rep. Steven Horsford wrote last week on X, 'but under the Trump slump, the numbers are tanking.' Horsford, a Democrat, represents Nevada's 4th Congressional District, which includes a portion of Las Vegas. By many metrics — including visitor totals, convention attendance and room occupancy rates — Las Vegas has not fully recovered from the onset of the pandemic. In dollar terms, however, Sin City continues to profit even as visitor numbers drop: Clark County, which includes Vegas, collected $1.16 billion in gambling revenue in June 2025, up 3.5% from a year earlier. So, Vegas' luck has not run out yet. For more, check out the full article here. Jim Rainey, staff writerDiamy Wang, homepage internIzzy Nunes, audience internKevinisha Walker, multiplatform editorAndrew J. Campa, reporterKarim Doumar, head of newsletters How can we make this newsletter more useful? Send comments to essentialcalifornia@ Check our top stories, topics and the latest articles on
Business Wire
5 days ago
- Business Wire
Lynkwell Selected by Southern California Public Power Authority to Provide Electric Vehicle Charging Network Management and Expansion Services
SCHENECTADY, N.Y.--(BUSINESS WIRE)--Lynkwell, a leading energy infrastructure provider, has been selected by the Southern California Public Power Authority (SCPPA) to provide electric vehicle (EV) charging station load management and network support services for their extensive existing infrastructure and future expansion. Lynkwell's high-performance CSMS (charging station management system) platform supports its ViaLynk™ network (& more than ten other white labeled networks) as the trusted solution for leading utilities, municipalities, businesses, and network migrations Share SCPPA is a Joint Powers Authority, created in 1980, for the purpose of providing joint planning, financing, construction, and operation of transmission and generation projects. Comprised of eleven municipal utilities and one irrigation district, SCPPA's Members serve more than five million Californians (two million customers) across a service area of 9,000 square miles. SCPPA's Members supply 16% of California's power, including over 800 public and private use charging stations. SCPPA member utilities' need for reliable, scalable, and manageable infrastructure and load management technology grows alongside energy diversification and the expansion of EV usage. SCPPA issued a request for proposal that included a three‑year contract for load management and support services to manage, monitor, and optimize charging infrastructure. As a selected vendor, Lynkwell will provide SCPPA and its participating utility members access to its ViaLynk™ network for the following services: ViaLynk™ Software Subscription – Access to Lynkwell's platform for charging station monitoring and management Network Integration Services – Onboarding process for moving utilities' existing and future Level 2 and DC Fast Charging stations onto the ViaLynk™ network Custom Feature Development – Customized solutions to meet individual member needs, including analytics, reporting, and branding Reporting – LCFS (Low Carbon Fuel Standard) reporting to support compliance with California regulations Lynkwell's high-performance CSMS (charging station management system) platform supports its ViaLynk™ network (and more than ten other white labeled networks) as the trusted solution for leading utilities, municipalities, businesses, and network migrations because of its unique feature set: All U.S.-based Team – Lynkwell's entire company, including its software engineering and support teams, are based in the United States, providing SCPPA's charging hosts and drivers with 24/7 assistance. Open Protocol – OCPP 2.0.1 certification through the Open Charge Alliance, supporting functionality such as hardware compatibility, ISO15118 Plug and Charge readiness, enhanced security, and broader transaction capabilities. Roaming Partners – Integrations with global roaming networks Hubject and ChargeHub maximize the number of vehicles that can charge at Lynkwell stations. Functionality – Lynkwell's platform allows site hosts to tailor their charging experience and energy usage with unique features such as Driver Discount Groups, Dynamic Local Load Management, Private Charging, Session Limits, Plug and Charge, and more. Lynkwell Upgrade™ – Combining Lynkwell's CSMS, flagship XLynk™ charger and Universal Pedestal, and comprehensive coverage into a single offering designed to easily replace low-performance chargers. 'California is building charging infrastructure for the future,' shared Will DeRuve, vice president of North American sales at Lynkwell. 'Software offered by many other providers is not compatible beyond their own product catalog, meaning their customers are limited in the hardware they can use and are tied to that software regardless of its performance. This is crippling for use cases like utilities and municipalities who need the option of working with different providers. Lynkwell continues to see extensive growth with organizations like SCPPA since our platform provides world-class functionality and the flexibility to evolve as charging evolves.' Lynkwell provides comprehensive charging to leading organizations such as Green Mountain Power, the New York State Department of Environmental Conservation, and Vermont Electric Power Company. See for more information. About Lynkwell Lynkwell is a leading energy infrastructure development company focused on connecting renewable generation, battery storage, utilities, and microgrids with next-generation fueling technologies via its Lynkwell X‑Change™ platform. Ranked as one of the fastest-growing private companies in the United States for the last three years, Lynkwell's leadership is bolstered by its top 10 nationwide cloud-based EV charging software platform which hosts dozens of EV charging networks and manages 10,000 assets. With a curated catalog of more than 500 products from leading global OEMs plus its own XLynk™ charger, Lynkwell's unique combination of full deployment solutions and energy integrations gives all clean energy stakeholders the power to thrive. Since 2016, the company has been instrumental in establishing private and public charging solutions and supporting infrastructure to empower America's growing clean energy revolution.
