Solar energy storage: 75% of solar net metering will be cut
2022-12-04
During the recent legislative session, the California Department of Energy (DOE) released a proposal for a rulemaking that would cut solar net metering payments by 75%. This proposal would make California the first state to adopt such a policy, and it could also put the brakes on a potential solar industry boom.
Distributed storage
Almost one year after the California Public Utilities Commission (CPUC) rejected an aggressive plan to slash solar net metering payments by 75%, a new proposal is now being considered. The new plan is intended to lower solar costs for all ratepayers, help California meet its zero-carbon energy goals by 2045, and encourage more solar + storage systems.
The new plan is based on a net billing system, which sends more accurate price signals based on avoided costs, instead of the high time-of-use tariffs. The new proposal also reverses a few measures introduced in the NEM 3.0 program.
One of the main changes in the new proposal is the removal of an $8 monthly fixed charge for rooftop solar homes. The CPUC said the change would allow customers to pay off their solar systems in nine years or less.
Fixed charges
Earlier this year, California’s Public Utilities Commission (PUC) released a revised proposed decision on solar net metering. It would cut net metering payments by seventy-five percent.
The new proposal will replace California’s current system of paying customers for the solar power they export to the grid with a new “net billing” model. Under the new system, homeowners would size their systems for future usage at 150% of their current usage. This is essential for ensuring that electric vehicle (EV) charging costs are covered. The new plan would also help the state meet its goal of using zero-carbon energy by 2045.
The revised proposal also avoids the controversial consumer fees that the original proposed rule would have imposed. The new plan would also allow customers to pay for their solar system in less than 10 years.
Bulk charges
Previously, the California Solar Initiative ran for 10 years, but now California has moved to implement a new rulemaking that will reduce solar net metering payments by 75 percent. This new rulemaking will affect the way solar energy is paid for in California, which will affect the viability of future solar projects.
The California Solar Initiative was a program designed to make solar power more affordable and to encourage more consumers to install solar power. The program combined federal solar tax credits with state solar incentive programs to encourage more solar installations.
The California Public Utilities Commission (CPUC) has announced a new rulemaking that will change how solar customers are paid for their solar energy. Rather than pay for energy that is sent to the grid during the day, solar customers would pay for the electricity that is exported to the grid at a retail rate.
Export credits
Earlier this year, the California Public Utilities Commission (CPUC) released a revised proposal for solar net metering payments. The new proposal reduces payments to homeowners for excess power, but it does not apply to solar systems already in place. Instead, the proposal is designed to help California meet its goal of getting 90% of its energy from clean sources by 2035.
The CPUC is expected to vote on the new proposal in December. In the meantime, solar energy groups and advocates are reviewing the new decision. They say the new proposal does not address the concerns of clean energy advocates, environmental justice organizations, and the solar industry. It will have a negative impact on solar savings and greenhouse gas reduction goals.
The CPUC’s original proposal would have created new monthly fees for rooftop solar homes. It would have also reduced the value of electricity sold back to the grid. Several solar groups and environmental justice groups have criticized the proposal, arguing that it would create unfair solar taxes and make solar less affordable.
Advocate for smart solar policy whenever you can.
Regardless of whether or not you’re in the market for solar-powered home augmentation, it’s always a good idea to advocate for a smart solar policy when you can. In the state of California, the smart solar program is a boon to both customers and utilities alike. If implemented well, it could also help lower all ratepayer costs.