Net Energy Metering 2.0 Proposed Decision

HUGE NEWS about NEM! Last week, the Net Energy Metering (NEM) Proposed Decision from the California Public Utility Commission (CPUC) was released and will not be as devastating to the solar industry as the utility companies proposed earlier this year.

The CPUC Proposed Decision is 148 pages, and preserves NEM with full retail credit (not wholesale credit as the utilities wanted). There will be no reduced compensation rate nor demand charges. No grid access fees, monthly netting or standby charges. It also approves a proposal by CALSEIA to enable properties with multiple service delivery points on a single property to participate (VNEM).

Proposed Decision Changes for NEM 2.0:

  • Residential solar customers on the new tariff will be required to be on a TOU rate starting in 2018. The outcome here is uncertain as we do not have solid information on what these new TOU rate structures will look like for solar customers.
  • An application fee of approximately $100 will now be charged.
  • Utility programs (CARE and energy efficiency) will now be assessed on a larger portion of the bill. It appears that the charge will be approximately 2 cents per kWh for exported power.
  • This tariff will be reconsidered in 2019 (NEM 3.0?). Clients who install solar during NEM 2.0 will be grandfathered for 20 years from date of interconnectivity, like the current offering to NEM 1.0 customers now.
  • A community solar program for disadvantaged communities is mentioned, with details to be determined in a new phase.

The CPUC shared their Proposed Decision on December 15, 2014, and allows 30 days time for changes to this proposal. A final decision will likely be determined at the CPUC’s January 28, 2016 meeting.

So far, this is a major win for solar!