What changes are changes in Nem 3.0?

118 views 7:11 am 0 Comments July 13, 2022

The CPUC nem 3.0 has proposed a decision. This new Net metering structure will not benefit you, the ratepayer, and many homeowners or ratepayers will be caught between a rock and a hard place. We have highlighted a few bullet points from the proposal below.

1. There will be a monthly “Grid Participation” charge of approximately $8/KW of installed solar capacity. For the average home, this can amount to around $48 per month.

2. They will convert from “Net Metering” to “Net Billing.” Homeowners will be able to size their system for future usage at a rate of 150 percent of their current usage under the new “net billing” structure. This is critical for covering EV charging costs.

3. To encourage the use of grid storage (batteries), utilities will offer incentives for the purchase of a home storage system. To some extent, this will help offset the “grid participation” charges.

The decision could have a significant and negative impact on Californians interested in going solar, or it could usher in an era of growth. If the CPUC chooses the latter, we may see higher consumer savings and more clean energy across the state. Otherwise, this decision could effectively end the California solar market as we know it.

The investor-owned utilities of California which own San Diego Gas & Electric filed joint opening comments. The utilities advocated for drastic cuts to NEM, which would limit consumers’ ability to invest in their own solar energy systems. Some of the proposed changes include:

• Starting with solar customers, forcing them to use the new NEM tariff. In other words, the CPUC will ask consumers to go solar before they understand the terms of their net metering programme.

• Eliminating the 20-year grandfathering provision for existing customers.

• Reducing the economic value of going solar by 50-75 percent from its current level.

The California Public Utilities Commission (CPUC) has launched a new proceeding to modify the state’s net energy metering (NEM) programme. Despite the fact that no new rules or regulations have been implemented, a final decision on NEM 3.0 is expected.

The decision could have a significant and negative impact on Californians interested in going solar, or it could usher in an era of growth. If the CPUC chooses the latter, we may see higher consumer savings and more clean energy across the state. Otherwise, this decision could effectively end the California solar market as we know it.

The investor-owned utilities (IOUs) of California, PG&E, Southern California Edison, and Sempra Gas Company, which owns San Diego Gas & Electric, filed joint opening comments. In their comments, the utilities advocated for drastic cuts to NEM, which would limit consumers’ ability to invest in their own solar energy system. Among the suggested changes are:

What is the current state of net metering?

When a customer’s solar system generates more energy than their home or business can use at any given time, the utility metre begins to spin backward. The solar customer receives a credit on their electric bill in exchange for sending solar energy back to the grid for use by neighboring customers. This credit is renewable month after month for a full year, lowering energy costs and ensuring compensation for energy generated.