California Net Metering 2.0 Update

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. The postponed decision on alternative tariffs until the next phase of the proceeding.

Overall, the updated decision proposal reflects 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.

Check this video to know more about Net Energy Metering 2.0