NEM 2.0 in California

The solar industry received great news yesterday when the California Public Utilities Commission approved their proposed decision on NEM 2.0. All major elements of net metering were upheld with no new fixed or demand-based charges. Under NEM 2.0 solar customers will see higher interconnection fees (estimated to be between $75 – $100 per installation) and will be charged non-bypassable rates on all energy received from the utility (roughly 2-3¢/kWh), regardless if that energy is later offset by solar production. All solar customers will also be required to take service under time of use tariffs. Utility companies have 30 days to finalize rate structures under the new rules.  

NEM 2.0 is scheduled to go into effect as soon as the current Net Metering Cap is reached for each of the 3 California investor-owned utilities. San Diego Gas & Electric will be the first utility to enter NEM 2.0 as they are currently at 85% of their limit under NEM 1.0. We expect that NEM 2.0 will go into effect for SDG&E in May 2016. PG&E and SCE won’t reach their NEM 1.0 caps until early 2017. In all cases customers approved under NEM 1.0 will retain their rate structure for 20 years from approval.

We at Genability have been following the CPUC proceeding closely in preparation for supporting NEM 2.0. Future versions of California tariffs correctly model the effect of solar on non-bypassable charges so Switch users can continue to model precise solar savings for their customers. Stay tuned to this space for future updates.

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