California to propose reforms to major rooftop solar policy

California is expected to propose changes this week to a state policy that allows owners of private homes with solar panels to sell their excess energy into the electric grid at or near the retail rate.

The policy, called net metering, has become a lightning rod of controversy since it was adopted decades ago: solar backers say it has been crucial to supporting the industry's growth in the fight against climate change, while critics contend it amounts to a multi-billion dollar subsidy for wealthy homeowners at the expense of other utility ratepayers.

Any change to the policy could have sweeping impacts on the utility and solar industries -- including big panel installers like Sunrun (RUN) and SunPower (SPWR). It could also provide a cue to states that tend to take California's lead on climate change and clean energy policies, experts said.