In an Age of Volatility, Stable Energy Costs are Crucial
Rising costs are nothing new for California’s businesses and nonprofits, but in recent times, the pressure is escalating. Utility rates across the state continue to climb sharply, driven by wildfire mitigation costs, infrastructure upgrades, and regulatory shifts. At the same time, global events—from trade disputes to conflict in Eastern Europe—are reshaping our energy economics.
Our customers keep telling us that electricity is no longer just a line item but a growing liability. The last few years have stung more than ever and the volatility is increasingly difficult to wave away as "business as usual."
A Response to a Shifting Landscape
California’s energy challenges are layered and compounding. Beyond price increases, PG&E, SCE, and SDG&E have responded with enhanced time-of-use rate structures, and to a lesser degree power shutoffs, to manage stress on the grid. These measures often leave businesses exposed to higher operating costs—or worse, outages that disrupt service entirely.
Solar systems, particularly those paired with battery storage, are now seen as strategic infrastructure—offering fixed, long-term pricing, insulation from market swings, and a backup energy source during grid failures. Energy independence and a degree of self-preservation, in addition to cost reduction.
Federal Incentives Still Favor Action
The Inflation Reduction Act of 2022 restructured federal support for clean energy in a way that benefits commercial and nonprofit entities alike. But some of the law’s most generous provisions—including measures to top up the 30% Investment Tax Credit (ITC) with additional incentives—may not last. Budget proposals circulating in Congress aim to curtail or phase out these incentives ahead of schedule.
At present, eligible projects can still access:
The 30% ITC, with adders for low-income or energy community siting. Most businesses and nonprofits in California now qualify for 40% at a minimum.
Direct payments for nonprofits, known as Elective Pay, which offer a cash equivalent of the ITC.
Accelerated depreciation and other accounting mechanisms for businesses to reduce tax burdens and increase net savings.
These measures can stack up to an effective discount of 70%+ on a solar system that slashes ongoing costs as its main purpose.
Taken together, these provisions make a compelling case: few other capital investments today offer this level of return—let alone the operational benefits of self-generated power.
The case for solar in California has always been grounded in long-term economics, but today it’s also about resilience and taking decisive action. In an era defined by inflation, geopolitical tension, and climate volatility, controlling a critical cost center like electricity is a matter of institutional health or "good business."
The tools to gain that control remain available for those looking to act, but the clock is ticking on them, as we've warned about for many months.