Monday, March 15th marked the beginning of deliberations in the California Public Utilities Commission over California's solar Net Metering rules.
Net Metering is the program that allows California home and business owners with rooftop solar to sell their excess power during the day to the utility companies. This program is the most important component to ensuring the viability of residential and commercial solar.
The program was created in 1995 and was modified in 2016 when the CPUC passed what has been called NEM 2.0. Part of the NEM 2.0 decision included the commission agreeing to keep credits tied to retail rates, rather than the less expensive wholesale rates, providing a big win for backers of solar. This component is likely to change.
Now, five years later, the CPUC plans to implement a further update to the program, NEM 3.0.
The big three investor-owned utilities — San Diego Gas & Electric, Southern California Edison and Pacific Gas & Electric — turned in a joint proposal that looks to resolve their complaints that net energy metering results in a “cost-shift” that unfairly burdens customers who do not have solar installations at their homes and businesses.
The joint proposal submitted by the three utility companies calls for changes that would affect only new solar customers, not existing net metering customers.
Below are the top three proposals from the state’s investor-owner utilities:
Needless to say, if the utilities companies get everything they want, this will largely end rooftop solar in California. They won’t get everything they want. The CPUC won’t allow for policies that will completely dismantle an enormous industry. They will however make changes that will lead to solar being less cost effective than it currently is.
If you’re reading this article and NEM 3.0 has not yet gone into effect and you still don’t have solar, it’s time to act fast. You don’t want to miss out on NEM 2.0. Fill out our form below to get a free quote and find out how much you can save with $0 down.