The CPUC’s proceedings have resumed regarding proposed changes to California’s Net Metering Program. Back in December of 2021, the CPUC issued a Proposed Decision to substantially re-structure California’s Net Energy Metering (NEM) program. The proposed changes include (among other things) substantially reducing the value of credits for exported electricity and transitioning existing NEM 1.0 & 2.0 projects to the new Tariff 15 years after the project’s interconnection date. In February of 2022, the proceedings were officially put on hold.
However, on May 9th, the CPUC re-opened the proceedings issuing a ruling to take comments on a few specific items. The following is summary of the two items most relevant for customers considering new solar projects:
CONSIDERING A NEW EXPORT CREDIT ADDER – In the December Proposed Decision, the new NEM program included a Market Transition Credit (available only to residential customers) that was intended to help ease the transition to the new tariff. In lieu of this Market Transition Credit, the Commission is now considering a fixed TBD cents per kilowatt-hour credit to be added on top of a still significantly reduced export credit. This new adder would step-down in value over time, providing a glide path that ends at the new export credit values included in the December Proposed Decision. Interesting to note is that the Commission is asking parties to comment on whether nonresidential customers should receive the new Market Transition and export adder credits.
CONSIDERING INCREASED CHARGES FOR SOLAR CUSTOMERS – Under the current NEM 2.0 tariff, customers pay Non-Bypassable Chargers (NBCs) on electricity they import from the grid. These charges are tied to specific elements of electricity rate structures including fees collected for Public Purpose Programs, DWR Bond Charge / Wildfire Fund, Competition Transition Charge, and Nuclear Decommissioning. The Commission is considering whether Utilities should collect NBCs on “gross consumption” which would include both electricity imported from the grid, as well as electricity that is self-consumed from a customer’s solar project.
Over the next several weeks, parties will be submitting comments to the Commission. Initial comments are due by June 10, 2022. Reply comments are due by June 24, 2022.
Current Expected NEM Proceeding Timeline
|Current Comment Period Closes||June 24, 2022|
|Expected Final Decision||August 4, 2022|
|Expected NEM 2.0 Sunset for New Projects||December 2, 2022|
In the meantime, TerraVerde is offering low-cost Fast-Track Project Consulting Services to evaluate project opportunities and submit interconnection applications for new projects to secure the current NEM program while it is still available. If you’re interested in exploring your energy project opportunities, write to us today at firstname.lastname@example.org.