Two bills that would improve the affordability and accessibility of solar in California have met with oppostion from an unexpected quarter: Pacific Gas & Electric (PG&E), a utility company that has previously been a champion of solar within the state. The utility, in fact, manages the impressive and complicated state-wide California Solar Initiative solar PV rebate program. Everyone knew the bills under consideration would displease utilities state-wide, but outright opposition took the bills’ supporters by surprise, it seems.

The two bills would change California’s approach to net metering (get some background on net metering in California and one of the bills by reading my first post on the topic, here). AB 560 would effectively force utilities to extend net metering payments for years and years to come. AB 920 would make utilities responsible for compensating consumers for all net excess generation (NEG) by lifting the current one year “expiration date” on net metering credits.

The Mercury News reports:

Put simply, PG&E’s objection is that the two measures would make solar too popular. The utility says that would be unfair to its non-solar customers, who under existing law must subsidize rebates and credits paid to solar-power users.

But some supporters of the bills say PG&E’s real worry is about its own financial burden, since it sells less electricity to solar-power users.”The big picture, unfortunately — and counter to their public image — is that PG&E doesn’t like the idea of an unbridled solar market,” said Bernadette Del Chiaro, director of clean energy programs at Environment California, a nonprofit statewide environmental group and sponsor of Assembly Bill 920. “Unfortunately, the business model doesn’t yet allow for a market in which customers generate their own electricity.”

This latter point is the crux of the problem. Utilities are required to meet government-mandated minimums renewable energy available in their portfolio. In order to do this, they need to make solar an attractive financial proposition for both residential and commercial consumers. The utilities do benefit by the simple expedient of not having to supply the kilowatt-hours now being produced instead by consumers’ renewable energy systems. This saves on both production and distribution costs. But what happens when so many customers are providing their own energy that the utility is no longer selling enough electricity to make a profit? For all the utility industry’s hype about this scenario, it’s surely a long way off–yet it is a valid point.

What do you think, readers? Do utilities have a responsibility to make solar affordable at the cost of their own profit?