Tag Archives: Net Metering

Utilities look to reverse net metering decision

By Rob Nikolewski, The San Diego Union-Tribune

San Diego Gas and Electric and two other major California utilities Monday filed applications urging the California Public Utilities Commission to hold a rehearing to vacate or make “modifications” to its decision keeping retail rate net metering in place until 2019.

“We feel it’s in the best interest of our customers to re-look at this issue and consumer advocates actually agree, as they have taken similar action,” said SDG&E representative Amber Albrecht.

In January, in a tense 3-2 vote, the CPUC sided with solar backers over utilities that insist they are not trying to blunt the growth of solar power in California. Instead, utilities say the net metering system that pays rooftop solar customers for the excess electricity their systems send back to the grid is unfair to consumers who don’t have solar energy systems. Solar companies and their customers say the power their systems generate helps lower strain on the electrical grid and reduces the need to buy power during times of high demand.

The commission — in a ruling that ran more than 150 pages — agreed to keep tying credits to retail rates, rather than near wholesale rates that other states use. The CPUC said it will continue to re-evaluate the rules but the decision was widely viewed as a big win for solar, as other states such as Nevada have rolled back some solar incentives.

SDG&E filed its application for rehearing jointly with Southern California Edison, calling on the CPUC to make changes to its decision. Pacific Gas and Electric also filed paperwork Monday, the deadline for applications for a rehearing, looking to get the commission to vacate its ruling. The CPUC has 120 days to respond to the requests for a rehearing.

Read full article in the San Diego Union-Tribune

A Trifecta for Solar Energy and Distributed Generation

We all have good weeks and bad weeks. For proponents of Solar Energy (and all other inhabitants of our planet) this has been an historic week, with major achievements at the International, National and California-state levels. Setbacks will be inevitable, but the events of this week will have memorable and lasting impact.

The first and International achievement was the December 12 Agreement of 188 countries at the United Nations Conference on Climate Change in Paris to take measureable actions with the eventual goal of keeping global temperature rise to less than 2ᵒ Celsius (3.6ᵒ Fahrenheit) by 2050 compared with pre-industrial levels. As we have repeatedly been informed, this is the level estimated by numerous scientists to avoid the worst affects of atmospheric warming and ocean rise.

Though yet to be ratified (a process that starts in April 2016), the agreement commits those countries that do ratify the agreement to establish national emission targets and report on progress every 5 years. While the agreement calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century, lowering the target would (according to some scientists) move this goal forward to the 2030 – 2050 timeframe. Either way, implementation of this agreement puts pressure on countries to support low- and non-carbon energy sources, solar very much included, accelerating their deployment and continued improvements.

The second and national achievement has not been enacted as this is written, but is the tentative agreement by Republican and Democratic House party leaders incorporated into the Appropriations bill that would extend tax credits for solar and wind projects from the current end-2016 expiration date through 2021. The agreement was the result of a compromise where-in Democratic Representatives would support eliminating the ban on US oil exports in exchange for Republican support for the Tax Credit extension.

While the vote can still go awry, a senior analyst at GTM Research (who closely follows the Solar market and industry) commented “the extension to the federal ITC is without question a game-changer for U.S. solar’s growth trajectory. Between now and 2020, the U.S. solar market is poised to see a number of new geographies open up with a 30% ITC, within both distributed and utility-scale solar.”

Finally, the third and California state achievement was the December 15 proposed ruling by the California Public Utilities Commission (CPUC) to leave in place most of the charges and fees now in place between the state’s major investor-owned utilities (Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric) and customers who have installed residential and commercial PV systems. Though yet to be finalized (in January 2016), the proposed ruling leaves in place most of the terms that allow customers with PV systems to recoup their investments in a timely manner thereby increasing the desirability of these systems.

Challenges to PV-favorable net metering terms and (lack of) other fees have been raised in many states, and regulator decisions have been mixed. The proposed CPUC ruling is perhaps the strongest pushback by any state regulator to utility claims of the high costs distributed PV systems impose on other (non-PV owning) rate payers. While new costs are proposed, and some uncertainty is introduced by requiring PV-system owners to be placed on Time-of-Use rates (with unknown impact on their bills), the proposed ruling is seen as leaving the business environment favorable for continued expansion of distributed generation.

For now the sun shines on distributed generation and the growth of solar-sourced clean energy. Let us hope that all three events help realize solar’s potential contribution to our future energy mix for the sake of maintaining our habitable planet.

New Report: Greatest Growth in Consumer Adoption of Solar Energy Among Middle Class

A new report on residential rooftop solar installations indicates the growth in California’s rooftop solar market is trending toward greater adoption by middle class households. The trend, seen over the course of eight years, aligns with a steady decline in the cost of solar power and in the increase of financing options.

The new study by Kevala Analytics analyzed California Public Utilities Commission (CPUC) solar interconnection data for 386,000 net metered solar systems installed from 2008-2015. The main takeaway conclusion from the study is that as solar deployment has expanded statewide, an increasing percentage of installations within that time frame are benefiting low- and middle-income median zip codes, with a decreasing fraction of installations in upper-income zip codes.

During these same eight years, there has been a steep decline in the adoption of solar among upper-income households contrasted with a recent increase in the market among the lowest-bracket incomes. In 2015, the statewide number of households in the highest income brackets matched the number in the lowest income brackets.

Read full press release from CALSEIA

Not just California: Solar Battles Raging Across U.S.

By Sammy Roth, The Desert Sun

California has more rooftop solar installations than any other state, and it isn’t particularly close. But the Golden State is far from the only place where the solar industry and utility companies are clashing over how much money solar customers should be allowed to save.

Officials in 24 states have recently changed or are debating changes to rate structures for solar customers, according to a report released by the N.C. Clean Energy Technology Center earlier this month. Many of those battles mirror the one taking place in California, where utilities like Southern California Edison say homes and businesses with solar panels need to pay more.

There’s a reason all these battles are happening now: As rooftop solar prices fall, the industry is growing more quickly than ever. That growth has reduced planet-warming carbon emissions, but it’s also thrown the utility industry into a panic about its long-term ability to make money, clean energy advocates say.

Read full article in the Desert Sun

California’s Chief Utility Regulator: The Future Grid Is All About ‘Distributed Decision-Making’

By Jeff St. John, Greentech Media

Michael Picker has spent part of his 11 months as president of the California Public Utilities Commission managing the aftermath of the alleged misdeeds of his predecessor. But as he oversees some of the biggest changes to California energy policy in over a decade, he’s also spent a good deal of time explaining his vision for greening the state with distributed energy, along with the distributed decision-making to make it work for the grid.

Since he was appointed in December, Picker has been stressing certain key policy philosophies for how the CPUC can help the state reach its carbon reduction and green energy goals. These include a preference for market-based solutions over technology mandates, a heavy emphasis on electric vehicles as part of the mix, and an enthusiasm for technologies that can manage lots and lots of distributed energy resources (DERs) in concert with the grid as a whole.

In a series of talks this month, Picker declined to discuss details of big proceedings under review, such as the CPUC’s net-metering reform, which has pitted the solar industry against the state’s big three investor-owned utilities. But he did sketch out a plan for managing the inevitable growth of intermittent renewable energy, whether from millions of rooftops or ever-cheaper utility-scale solar and wind projects.

Read full article from Greentech Media

Big Energy’s Solar Grab Protested in California

Despite California Gov. Jerry Brown’s ceaseless tour of publicizing climate change and renewable-energy reforms, regulators are mulling expansive changes to the state’s solar-energy policy that critics claim could decimate a booming solar industry.

Ahead of a Dec. 31 deadline, the California Public Utilities Commission is considering proposals from the state’s largest utilities that would drastically alter how solar users pay for access to electricity grids. The utilities’ proposals could eliminate or weaken a popular state program that reimburses homeowners for their extra solar energy while increasing fees for accessing the grid.

At a rally Thursday at the state capital, executive director of the California Solar Energy Industries Association Bernadette Del Chiaro told a crowd that the utilities are attempting to stifle residential solar systems in California and their proposals are aimed at increasing profits.

“The utilities are threatened by consumers generating their own electricity; it threatens their bottom lines,” Del Chiaro said, with dozens of solar-industry representatives clad in teal blue shirts behind her. “They make money off building big expensive infrastructure projects.”

At stake is a tariff program known as net metering, which allows homeowners with solar panels to send back excess energy to the electricity grid in exchange for compensation from the utility. Advocates credit net metering with making California the largest solar power producer in the nation and contributing more than 54,000 solar industry jobs statewide.

Read full article from Courthouse News Service

Should homeowners with solar panels pay to help maintain the electrical grid?

By Aaron Orlowski, The Orange County Register

Homeowners face a simple calculus when deciding whether to install solar panels on their roof: Will the panels pay for themselves with savings on their electric bill?

But buried in that bill are complex variables defined by what’s known as the state’s net metering rules – the very essence of which are under debate at the California Public Utilities Commission in San Francisco. Those rules must be changed or renewed by the end of the year. As the deadline nears, the clash over whether solar panel users should be forced to pay to support a grid from which they seek to disconnect is getting fiercer. Utilities want to slap fees on solar users, while the solar industry wants them left largely untouched.

Since 1996, California’s net metering rules have allowed homeowners with solar panels to effectively spin their electric meters backwards when their panels are generating more power than their homes are using. That helped pave the way for the state to lead the nation by installing 11,500 megawatts of solar capacity and building an industry that employs 54,700 people. Whether the new rules will bolster that industry even more or prick its balloon will likely be decided in the next two months.

Read full article in the O.C. Register

California Leads a Quiet Revolution

By Beth Gardiner, The New York Times

California is cruising toward its 2020 goal for increasing renewable energy and is setting far more ambitious targets for the future. Its large-scale solar arrays produced more energy in 2014 than those in all other states combined. Half the nation’s solar home rooftops are in the state, and thousands more are added each week.

With its progressive politics, high-tech bent and abundant sunshine, California is fast ramping up its production of clean electricity, setting an example its leaders hope the rest of the country, and other nations, will follow as they seek to cut emissions of climate-warming carbon dioxide. “It’s hard to overstate the importance of California in terms of renewables,” said William Nelson, head of North American analysis at Bloomberg New Energy Finance. “It’s like an experiment in terms of how quickly we can add solar to the grid.”

Fifteen years after an energy crisis, caused partly by deregulation and market manipulation, brought blackouts and price spikes, the shift has been remarkably smooth, many analysts say. Even without counting the big contribution from home solar generation, 26 percent of the state’s power this year will come from clean sources like the sun and wind, Bloomberg New Energy Finance estimates. The national average is about 10 percent. “It’s kind of a quiet revolution,” said Daniel Kammen, director of the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley. “Nothing weird or strange has happened, electricity prices haven’t shot up or down.”

Read full article in the New York Times

Is California’s Net Metering 2.0 a Solar Tax Risk?

By Jeff St. John, Greentech Media

Everyone agrees that net-metered rooftop solar doesn’t pay income tax. But nobody really knows how Uncle Sam will treat feed-in tariffs, wholesale export compensation, and other arrangements that California’s utilities are suggesting to replace the state’s net metering regime — and that’s a risk exposure the industry shouldn’t have to bear.

Solar groups have asked the California Public Utilities Commission to consider this argument as it mulls the biggest changes to state solar policy in over a decade. Under AB 327, the CPUC has until the end of 2015 to create a successor “NEM 2.0” tariff that balances solar, utility and non-solar customers’ needs, and will apply to all new customers starting as early as next year.

The NEM 2.0 proceeding has pitted utilities, whose proposals would roughly halve the per-kilowatt-hour rates that customers are paid for their net-exported solar, against solar and environmental advocates, who have argued in favor of keeping net metering the way it is. Utility proposals would also impose fixed or per-kilowatt-hour charges, and impose other restrictions that chafe solar advocates.

Read full article from Greentech Media

California Passes a Bill Targeting 50% Renewables by 2030

By Julia Pyper, Greentech Media
September 12, 2015

In the final hours of the legislative session, California lawmakers passed a landmark climate bill that will promote greater deployment of clean energy technologies over the next 15 years, but which some supporters say still fell short of expectations.

SB 350 will increase building energy efficiency in the state by 50 percent by 2030. It will also boost the amount of renewable energy utilities need to buy to 50 percent by 2030. The third major component of the bill — a target to reduce oil use in cars and trucks by 50 percent over the next 15 years — was struck down earlier in the week. In addition, to the dismay of both solar companies and utilities, SB 350 does not specify that distributed solar arrays count toward the mandatory component of the renewable energy target.

SB 350 is one of 12 climate bills that have been working their way through the California state legislature.  A separate bill (SB 32) that would have required California to reduce emissions 80 percent below 1990 levels by 2050 failed to pass in the Assembly, despite strong support from the governor, as well as from U.S. Senators Barbara Boxer and Dianne Feinstein.

With the state’s legislative session now over, clean energy advocates are focusing their attention on the California Public Utilities Commission. California’s three investor-owned utilities have filed proposals to reduce compensation for net-metered solar customers, and add monthly charges for the electricity these customers consume. Under a 2013 law (AB 327), the CPUC has until the end of the year to create a successor “NEM 2.0” tariff. Solar advocates, including the state’s leading cleantech investors, are pushing for regulators to keep solar incentives the same through 2020.

Read full article from Greentech Media