In 2013, a new California law directed the state’s Public Utilities Commission to design a new net metering program to take effect in 2017.
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Net metering, which has been in place for 20 years in California, has been critical to making it affordable to go solar. It offers solar energy systems; solar lease and power purchase agreement finance products; mounting hardware for photovoltaic panels; and related software, as well as develops a proprietary battery management system, which is created to enable remote, bidirectional control of distributed energy storage that can provide benefits to customers, utilities, and grid operators. “It’s a big step, but it’s only one of many”, CPUC President Michael Picker said. The CPUC is set to vote again on net metering in 2019. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. “We applaud the CPUC for listening to the outpouring of support from Californians all over the state to protect net metering and uphold Governor Brown’s vision for climate and clean power leadership”.
California regulators have the largest solar market in their backyards with over 450,000 rooftop solar arrays.
Under the new California proposal, new net metering customers will pay a one-time fee to utilities to hook up their solar panels of between $75 and $150, and then will continue to pay a fee of about $0.02 per kilowatt. The homeowner’s electric meter essentially spins backwards, giving them full retail-rate credit for that extra electricity.
Bernadette Del Chiaro, executive director of the California Solar Energy Industries Association, said that the ever-dropping costs of solar equipment should offset the new fees.
The decision does, however, mean slightly higher rates for solar customers. Last month the Nevada PUC imposed a utility-friendly system on solar owners in that state that dramatically reduces net metering fees and increases the fixed charges that solar owners must pay for their grid service, including those who purchased or leased solar systems under the prior rules.
PG&E spokeswoman Ari Vanrenen said in a statement that the power company supports the continued growth of rooftop solar in California, but she called the decision disappointing.
The decision was welcomed by the solar industry, which had been concerned about fees and charges that could have decimated solar’s appeal for home and small business owners.
Eliminating the transmission charges, Sandoval said, would double the subsidy being paid by non-solar customers to their solar-powered neighbors in some parts of the state. Time of use rates oblige customers to pay a higher price for using power during times of peak electricity usage, and a lower price during times of less usage.
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The ongoing fight over net metering speaks to the growing power of the solar industry and its increasing economic viability.
