If your company is interested in solar PV, energy storage, microgrid integration, along with locking in the current NEM-2 regime for the next 20 years, get in touch with us.
NEM3 could be devastating to California’s renewable industry given the impact of the new proposal by California’s three major investor-owned utilities (“IOUs”) PG&E, SCE, and SDG&E to change California’s Net-Energy Metering (“NEM”) program with an expected decision by November 2021.
In late 2013 Governor Brown signed into law AB327, which codified Net Metering providing owners of solar systems the opportunity to receive total retail value for NEM credits. In early January of 2016, the California Public Utilities Commission (“CPUC”) established a process for how the NEM program would get reduced from the then existing retail billing credit program (“NEM-1”) to a lower value credit program (“NEM-2”) to be set by the CPUC. July 1, 2017, was the start date, or when an IOU reaches its NEM Cap of 5% of its aggregate customer peak demand. Eligible customers would become grandfathered into the NEM-1 program for 20-years. The outcome of NEM-2 provided owners with a one-time interconnection fee depending on system size and reduction of all NEM credits by non-bypassable charges ($0.02/kWh on average).
NEM-3 seeks to devalue NEM credits further and impose fixed charges for new solar owners. See IOUs Proposal for NEM3. The impact will shift simple payback on solar projects from a 3-year average to 11-years and Solar & Energy Storage from 4-years to 10 Years.
Action to Take
Regatta Solutions® is available to assist your firm with sizing, engineering design deliverables necessary to apply for interconnection with your utility. Get grandfathered into NEM2 before it’s too late!!! Contact us at firstname.lastname@example.org for more information.