NEM 2.0 Update - summary of changes
The CPUC's decision on the new Net Energy Metering rules comes down squarely in favor of rooftop solar. The new rules provide valuable certainty to future solar customers by:
- Rejecting demand charges, fixed charges and standby charges that would apply only to solar customers, and finds that none are reasonable or cost-justified.
- Ensuring that customers who go solar under the new net metering tariff can stay on that tariff for 20 years from the date their solar array is interconnected – reducing uncertainty around future policy changes.
- Extending eligibility for the net metering successor tariff to customer-sited facilities larger than one megawatt in size, so long as the customer pays all interconnection and distribution system upgrade fees.
The proposed decision would also make some compromise changes that will apply to customers under the new net metering program:
- Requires solar customers to pay non-bypassable charges on all the energy they consume from the grid, regardless of how much clean energy they export back to the grid. These costs cover public purpose programs, like energy efficiency rebates and rate subsidies for low-income residential customers, which would add a new payment of approximately 2 cents per kilowatt hour of clean energy exported back to the grid.
- Puts a small interconnection fee in place to ensure that customers cover the costs to the utility of plugging into the grid.
All in all, school districts should find that these changes will have a minimal impact on the economics of your school district project.
Thanks to our friends at Vote Solar for the summary.
Updated January 28, 2016