In California, there are only a few months left to submit new solar and battery projects to secure the current NEM benefits and rich battery incentives.

 

The Current NEM Program Is Closing Soon

As highlighted in our recent article, proceedings are currently underway at the California Public Utilities Commission (CPUC), defining what will become the next iteration of the State’s Net Energy Metering (NEM) program (NEM Rulemaking 20-08-020). NEM is the utility program which enables on-site (or roof-top/behind the meter) energy installations (like solar) to earn credits for exporting electricity to the grid. The State transitioned from the initial NEM program (NEM 1.0) to a successor program (NEM 2.0) in 2016-2017. The changes made to the program at that time resulted in NEM 2.0 projects generating less savings than those that were deployed under NEM 1.0. Similarly, we expect to see a material reduction in the value of new projects under NEM 3.0. Projects targeting the benefits of NEM 2.0 need to submit their interconnection applications while NEM 2.0 is available. A final decision from the CPUC is expected sometime between late 2021 and early 2022. Thus, time is of the essence for submitting interconnection applications. 

Incentive Funding Is Nearly Fully Subscribed

 

Given the increased demand for battery energy storage, available funding for California’s battery incentive program has been moving fast! As you can see in the graph, after the emergence of the wild-fire related Public Safety Power Shutoff Events in 2019, demand surged for batteries systems to both reduce energy costs and provide backup power. Based on the location of the project and the type of facility where the project will be deployed, California’s Self-Generation Incentive Program (SGIP) provides a rebate that covers about 30-100% of the cost of a battery project (you can learn more about the qualifications for the various incentive levels by reviewing our recent article on the subject here). As of July 7, 2021 there is only $104.7 million remaining in the program for commercial-scale batteries. The table below provides a break-down of the remaining available funding, along with a look at the activity that has been observed over recent months. Given the rich incentive levels, and substantial battery project demand, funding for this incentive program is expected to be fully subscribed in 2021.

Remaining SGIP Battery Incentive Funding (in millions)

SGIP Budget Category

Remaining Available Funding as of 7/7/21

Difference Over The Past Month

Difference Over The Past 6 Months

Large Scale Storage & Resiliency Adder

SDG&E

$19.9

($0.1)

($1.1)

SCE

$15.3

($0.4)

($7.7)

SoCalGas

$14.6

$0.0

($0.4)

PG&E

$12.5

($1.4)

($27.5)

Equity Resiliency

SDG&E

$0.0

$0.0

$0.0

SCE

$0.0

($32.3)

($92.0)

SoCalGas

$42.3

($1.2)

($3.7)

PG&E

$0.0

$0.0

$0.0

TerraVerde Energy Can Get Your Projects Submitted Now!

In support of our clients moving swiftly to secure SGIP incentives and NEM 2.0, TerraVerde Energy is offering a no-cost, no-commitment Fast-Track Project Discovery Assessment. Through this swift analysis, TerraVerde will review your organization’s energy usage & billing information, potential project sites, and determine whether you could realize cost savings or resiliency benefits from deploying new solar & battery projects.

Should viable projects be discovered, TerraVerde offers a Risk-Free Project Development Agreement whereby TerraVerde will submit your SGIP applications, interconnection agreements, and administer a solicitation process for your projects at no cost, and is only compensated when your organization decides to proceed with the projects.

TerraVerde is a leading independent energy consulting firm proudly supporting clients with the design and deployment of energy projects and programs that reduce costs, increase resiliency (backup power), and enhance sustainability. Over the past 11 years, we have supported the successful implementation of over 100 MWs of DERs (including solar PV, battery energy storage, electric vehicle supply equipment) for which we provided independent technical and financial feasibility analyses, project development (competitive solicitation) support, project implementation management (overseeing design, interconnection, incentive applications, and construction), and continue to provide ongoing asset management services (performance monitoring, operations & maintenance, revenue program management, detailed energy & financial performance reporting). To date, TerraVerde Energy has delivered over $50,000,000 in energy cost savings benefits to our clients.

Write to us today at hello@terraverde.energy to learn more about our Risk-Free Project Development Model and request your free Fast-Track Project Discovery Assessment.

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