The California Climate Credit is fairly misunderstood as far as energy incentives go – so much so that the utility is in a prime position to pull a little trick with this treat! Several months ago we talked about this topic for the very same reason, but it bears repeating: the climate credit isn’t what it seems, and in this spooky season of endless rate hikes, it might just be the solution we need to deal with our energy bill jumpscares! Let’s take another look at the California Climate Credit, and uncover the mystery of this misunderstood energy program.
The California Climate Credit is the result of California’s Cap-and-Trade program, namely the proceeds which come from the purchase of carbon pollution allowances. It is a state program that leverages the utility as a distribution system, providing a path for ratepayers to access this credit through their energy bills.
The climate credit is of course a welcome benefit to all California ratepayers, but it’s important to understand that definition, because this is the core of the trick or treat issue. The climate credit is not from the utility – it is the Cap-and-Trade Program which generates the money which constitutes this credit. The utility in this case is just a means of conveyance – as the state applies the proceeds of their emission market to provide you relief through your energy bills.
As the reduction of carbon emissions is critical to the health and safety of our state, country, and world, California has a vested interest in using taxpayer funds to maintain programs like this market, and the relief provided to ratepayers is a direct result of those efforts for your betterment. The utility is simply the midpoint between you and this state program, and frankly the relief you will receive in October is a direct response to the obscene nature of our current energy rates.
The Climate Credit Costume
The climate credit is in this way a convenient costume for the utility, who has spent the past year raising energy rates multiple times. The current price of power in California is out of control, and the relief from the climate credit is a welcome but limited solution to this scary problem. You know things are out of hand when the topic of burdensome energy bills is a point of conversation at every gathering you attend. Everyone is feeling the pain right now, so it’s more important than ever not to get tricked by the climate credit treat.
Sure this program is a net positive, but it’s a net positive because the state is trying to reduce the impact of climate change, not because the utility has cut you some slack out of the goodness of their hearts. That’s simply not how this program works. With rates as high as they are, and with the threat of more rate hikes in the coming year, we can’t afford to let them dress this climate credit up in the costume of a utility-provided gift. They might have delivered the package, but they’re not the one who sent it.
With more tricks than treats on our hands, and with the grim specter of additional rate increases looming on the horizon, now is the time to shine some sunlight on the problem and make the switch to solar. With a solar + storage system, you can defeat your monstrous energy bill and start saving money for treats of your own. Don’t let the utility trick you into believing that these current rates are normal – just listen to the consumer advocacy groups sounding the alarm about just how bad our bills have become! Let solar be your guide towards reduced and reliable monthly energy payments – schedule a free consultation today, or use our modeling tool to see solar on your home today!
