Homeowners with solar panels also benefit from the state’s net metering subsidy, which compensates them for the excess power they produce and remit to the grid at the retail rather than wholesale rate. Yet California sometimes produces so much solar power that it has to pay Arizona to take it to avoid overloading power lines.
Thus, utilities pay homeowners to produce energy that they don’t need at a huge mark-up and then send it to Arizona at a loss. Brilliant. Balancing the electrical grid will also become more expensive and challenging due to the solar-panel mandate.
California’s astronomical housing costs are a result of these government mandates, zoning restrictions, and permitting fees. The state Legislative Analyst Office estimates that it costs between $50,000 to $75,000 more to build a home in California than in the rest of the country. Building a low-income housing unit costs about $332,000.
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