California Net Metering 2.0 Update

By Gordon Algermissen
January 27, 2016
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This afternoon, the California Public Utilities Commission (CPUC) released an updated proposed decision on Net Energy Metering (NEM) 2.0. Here are the key takeaways from the update:

• Fixed the definition of non-bypassable charges to exclude transmission charges, halving the NEM credit reduction from 4.2-5.0 cents/kWh to 2.0-2.3 cents/kWh.
• 20 year grandfathering remains in effect instead of 10-year grandfathering proposed by the public utilities.
• California utilities succeeded in mandating Time-of-Use (TOU) for all NEM 2.0 residential customers of PG&E and SCE once NEM 2.0 goes into effect. SDG&E customers have until five years after their new time-of-use rates are approved (expected early 2017).
• Removed language regarding community solar programs for disadvantaged communities. Postponed decision on alternative tariffs until the next phase of the proceeding.

Overall, the updated decision proposal refects a win for the solar industry. This is especially significant considering the recent setbacks for solar in states like Nevada and Arizona. While solar is not quite as lucrative under the NEM 2.0 policy, it is still at grid parity or better for most of California. For more information, you can read the entire proposed decision update here. We will post a comprehensive analysis of NEM 2.0 here once the decision is finalized.

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Gordon Algermissen

Written By

Gordon Algermissen

Gordon is an Operations Manager at Pick My Solar. Gordon graduated from Claremont McKenna College with a B.A. in Environment, Economics, and Politics. In addition to solar, Gordon has interests in water conservation, land management, and environmental policy.

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