The original Luddites were 19th century textile workers in England who sought to protect their livelihood by resisting the mechanization of their trade in the Industrial Revolution in the early 1800s. Weavers, out of work in a profession stretching back centuries, were enraged, and sabotaged the mechanical looms that were replacing their craft. That was a populist uprising. Today’s Luddites are less likely to be found among workers than in powerful corporate interests that “have always done it this way” and see change as a threat to their bottom line and the interests of their shareholders.

Supported by legislation and enticed by tax credits many California residents have taken advantage of the program originally promoted by governor Schwartzenegger to encourage carbon neutral generation by home based solar collectors. Participants could deduct 30% of the cost of installing rooftop from their income taxes. Others, unable or unwilling to put out the $20-30,000 to install solar panels, acquired them through rooftop lease agreements with third parties that reduced their monthly electric bill but required little or no upfront payment. Furthermore, California legislators made sure “net metering” arrangements would permit customers with solar panels to sell the power they generate back into the grid at the retail rate. The result has been a hugely positive community investment in clean energy and a significant source of power for the state.

Grid Issues

Domestic electricity generation poses significant challenges both to management of the power grid and to the business plans of the big energy utilities. The latter’s latest response proposed slashing net metering rates by 80%, and imposing a monthly charge between $55 and $90 on all customers with solar panels. (See https://www.solarreviews.com/blog/california-net-metering-changes) These drastic measures were originally proposed in AB1139, a measure that was narrowly defeated in the California Assembly in June, but then immediately referred to the Public Utilities Commission (CPUC), an unelected body appointed by the Governor. The CPUC voted unanimously to support it; a final decision is expected in January 2022.

Corporate Luddites?

Are our electric utilities 21st century Luddites? Their grievances echoes modern post-industrial society where traditional trades have been adversely affected as new technologies transform working practices. Readers will remember the killing of the electric car by General Motors in the 1990s, and more recently attempts by the Trump administration to boost the coal industry and roll back environmental rules that facilitate oil and gas exploration in sensitive areas.

Small-scale rooftop electricity generation does create a problem in managing the power grid, because the amount of power in the grid must be balanced, and solar fades out at sunset, a time of high demand.

Domestic solar generation will require changes in how the guardians of the grid manage it, because they cannot control the amount of electricity produced from its scattered sources. As Gretchen Bakke puts it in her very useful book The Grid, the fraying wires between Americans and their energy future, the grid was “designed for the effective transit of power from a few massive producers to a wide scatter of users.”