Solar Net Metering 2.0:   Success!  A Fair "Successor Tariff" 

January 28, the CPUC voted to adopt a Successor Tariff that preserves the core benefits of Net Metering - the retail compensation for each kilowatt-hour (kWh) produced by a small generator (PV, wind).  This is a big victory for the solar industry.  It's also important and welcome news for the many clean energy advocates, solar customers, and concerned citizens who weighed in to the CPUC - Thank You!

A robust solar industry is key to Community Electricity Choice.  Net Energy Metering (NEM) has underpinned solar's growth since 1996.  Under NEM, a small generator is paid the same for each kWh provided, as they are charged for the kWh they buy.  Under full NEM, solar purchasers effectively "roll back the meter". 

In 2013, AB 327 required the CPUC to develop a NEM2.0, the Successor Tariff.  NEM 2.0 goes into effect when either

• SDG&E reaches its "NEM cap" (5% of demand satisfied via small generators), or
  
• July 1, 2017, which ever occurs first.  
  
• Track the remaining MW under SDG&E's 5% cap here. 
  

IS Anything Changing?  
Yes.  After SDG&E reaches its 5% cap, NEM2.0 will go into effect.  The following things will be different for new solar customers:

• New customers will be charged a "reasonable" fee to interconnect their systems to SDG&E's grid. 
• New customers will pay the same "non-bypassable charges" currently paid by non-solar customers, on all kWh they buy.
• Solar customers will be placed on Time-of-Use (TOU) rates, as these rates are phased in for all customers.
  
• "Virtual Net Metering" and Net Metering Aggregation stay the same.  These allow property owners to share PV kWhs with multiple properties/accounts.  See explanations here.  
  

NEM2's changes are modest compared to NEM's core benefit -- compensation at retail for kWh "sold" to the grid.  NEM2.0 is expected to strike a careful balance -- sufficient compensation to enable solar sales to continue, even while costs are rebalanced across solar- and non-solar rate-payers.  A win-win for all. 
 

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*Thanks to KQED public radio for northern California for their great graphics.  Listen to and/or read their full story on NEM here.