California solar produced on rooftops is about to breach the next limit of 5 percent of aggregate customer peak demand. The effect could be to sunset the incredible growth of distributed solar rooftop power in the state, as utility payments are ended for future rooftop solar production.
Why is there a limt? Because utilities in California must pay homeowners who generate clean power for the grid. “Net metering” gives solar customers fair credit on their utility bills for the power they generate. There is a five percent cap on the amount of net metering that utilities must make available to customers. That limit was already raised once a couple of years ago, from about half that amount.