Utility companies are trying to rewrite California's rooftop solar story, arguing that solar owners unfairly raise costs for everyone else. These monopolies claim solar customers are causing a “cost shift.”This argument is not only false, it’s harmful to the clean energy movement.

In this blog, our solar expert Aaron Nitzkin helps us debunk that myth, using reliable data and independent studies to set the record straight.

Why the “Cost-Shift” Narrative Falls Apart

Rooftop solar in California has delivered extraordinary public value. It lowers demand on the grid, reduces peak-time energy prices, avoids costly infrastructure upgrades, and empowers residents with cleaner, more affordable electricity.

Yet utilities continue to push a misleading argument that rooftop solar users are driving up rates for everyone else.

California's Rooftop Solar Success Is Undeniable

Before we dive deeper into the so-called “cost-shift,” consider what rooftop solar has already accomplished in California:

• Over 31% of California’s electricity now comes from solar, the highest percentage of any state in the U.S.
  
  
• The state ranks #1 in total installed solar capacity, with more than 49,000 MW online.
  
  
• More than 22% of California homes are powered by solar.
  
  
• The industry supports 2,170 solar companies, providing thousands of jobs and driving local economic growth.

These are not marginal achievements, they’re the backbone of California’s clean energy leadership.

Yet despite this progress, utilities continue pushing the false narrative that solar homeowners are creating a “cost shift” that unfairly raises rates for others. This claim isn’t just inaccurate, it threatens to derail one of the nation’s most successful clean energy efforts.

Q: How do you define the cost-shift argument, and what do you think is misleading about it?

A:
“Utilities argue that solar users don’t pay enough for grid maintenance because they buy less electricity. But they ignore the fact that rooftop solar reduces grid stress, flattens peak-hour demand, and eliminates the need for some of the most expensive infrastructure projects. The public ends up saving because of solar, those savings just aren’t being reported.”

In fact, a 2024 independent analysis by M.Cubed found that rooftop solar saved California consumers $2.3 billion in utility costs in a single year, with $1.5 billion of those savings going to non-solar customers.

These savings came from reduced peak demand, avoided infrastructure costs, and fewer energy purchases during the most expensive hours. Since 2006, rooftop solar has helped California avoid 15,000 megawatts of peak load, making electricity cheaper for everyone, not just solar adopters.

Q: Is the cost-shift narrative having an impact on your customers and their communities?

A:
“Yes. we’ve had solar customers who feel guilty for going solar and non-solar neighbors who believe they’re being penalized for not having panels. It’s all based on half-truths pushed by utilities.”

This confusion isn’t accidental, it’s part of a broader effort by investor-owned utilities to maintain centralized control of the energy system. Utilities earn guaranteed profits by building infrastructure. But rooftop solar reduces the need for new transmission lines, peaker plants, and other capital projects, cutting into those profits.

One energy economist compared it to the gas industry demanding payment from EV drivers for lost fuel sales. That’s not a “cost shift,” it’s a market transition.

Q: What about the argument that rooftop solar only benefits wealthy households?

A:
“That was more true a decade ago, but not anymore. In 2023, nearly 40% of new rooftop solar installations came from households earning under $100,000 a year.”

Affordability and accessibility have improved dramatically. Many lower- and middle-income families are turning to solar to escape high electricity rates and gain control over their energy use. New financing and incentive programs are also making solar and storage more accessible to renters and moderate-income homeowners than ever before.

Why Utilities Are Still Pushing the “Cost Shift” Myth

The utility industry continues to cite a discredited report from a branch of California’s Public Utilities Commission (PUC), which falsely claimed rooftop solar increases costs for other customers by over $8 billion.

But M.Cubed researchers analyzed the same data and uncovered serious errors, like assuming solar users should be charged for the electricity their panels produce. That assumption alone added nearly $4 billion to the PUC’s estimate.

M.Cubed also corrected other omissions, including the fact that solar customers still pay utility bills and that many low-income users receive additional support. These corrections reveal what utilities don’t want the public to know: rooftop solar isn’t a burden, it’s a net benefit for all ratepayers.

Q: Are customers still motivated to go solar despite all this?

A:
“Absolutely. As utility companies keep increasing their rates, saving costs with solar and energy independence are stronger motivators than ever. But now we’re spending more time helping people unlearn misinformation than just showing them the benefits.”

With extreme weather, rising rates, and more outages, families want solutions that offer stability and control. Rooftop solar, especially when paired with batteries, delivers that. Yet the current narrative makes some people hesitate or feel guilty for investing in their own resilience.

Q: So, does rooftop solar really burden the grid?

A:
“No. It strengthens the grid. Local energy generation reduces strain, lowers maintenance costs, and helps prevent blackouts. That’s not a burden, it’s a benefit.”

Every kilowatt generated on a rooftop during a hot summer afternoon is one less the utility must supply from expensive, polluting peaker plants. It’s local, clean, and cost-effective. That’s why solar is gaining support across the political spectrum, even in states like Utah, which recently launched a popular “balcony solar” program for renters.

Q: How do these policies and utility messaging affect your ability to serve customers?

A:
“It slows things down. It creates doubt, confusion, and distrust. Instead of helping people go solar, we’re stuck explaining why the cost-shift argument is flawed.”

Customers are losing confidence, not just in utilities, but in the promises made by policymakers. One homeowner recently testified that he no longer trusts state energy policy, fearing contracts can be rewritten at any time. That uncertainty alone is slowing the clean energy transition.

Q: How does rooftop solar help build a more resilient energy system for California?

A:
“It decentralizes power and reduces dependence on aging infrastructure. During outages or emergencies, homes with solar and batteries can stay powered. That’s resilience we need now more than ever.”

Rooftop solar creates a bottom-up energy network, one where homes contribute to grid stability instead of relying solely on distant power plants and long transmission lines. It’s like the transition from landlines to cell phones, a shift toward flexibility, personalization, and efficiency.

Q: What needs to change so more people feel confident going solar again?

A:
“We need to cut through the noise with clear facts and real stories. Solar is still a smart, secure investment. But we’ve got to help people see past the fog created by utility lobbying.”

Solar companies, community groups, and advocates must keep the message simple and grounded:

• Solar saves money.
  
  
• Solar reduces pollution.
  
  
• Solar strengthens the grid.
  
  
• And solar puts power, literally, back in people’s hands.
  
  

Q: What’s your message to the public or policymakers?

A:
“Stop punishing people for making smart, clean energy choices. We need to support solar, not sabotage it.”

More than 2 million California homes now have rooftop solar. They’re not freeloaders, they’re pioneers. The energy future is local, clean, and resilient.

The real question is whether policy will follow the people, or continue following the money.

The Citadel Difference

At Citadel Roofing & Solar, we’re not just selling systems, we’re helping families reclaim control of their energy. We guide you through design, permitting, installation, and long-term support so you can focus on savings and security, not politics.

With more than a decade of experience and thousands of installs across California, we’re here to give you facts, not fear tactics.

Contact us today for a free consultation and see how solar and battery storage can work for your home!