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Reactions to the approval of NEM 3.0., a regulatory procedure that reduces payments for the export of rooftop solar energy by 75%.
The California Public Utilities Commission (CPUC) has unanimously voted to approve Net Energy Metering 3.0 (NEM), cutting payments for excess solar production sent to the grid by 75%.
The CPUC voted to cut Californias median export rate from $0.30 per kWh to $0.08 per kWh, effective April 15, 2023. Customers with new systems installed and approved for the interconnection to the network before the date of entry into force in April they will be covered by the NEM 2.0 rates.
Average net metering rates currently range from $0.23 to $0.35 per kWh, and the proposed new decision reduces them to an average of $0.05 to $0.08 per kWh. This is the largest export tariff cut in US history, in a market that accounts for approximately 50% of the countrys residential solar market.
Industry Reacts
“What the CPUC has done today is an embarrassment and a disservice not only to Californians, but to the nation. The commissions decision will crush Californias residential solar market and undermine Governor Newsoms promise to be the national leader in building a 100% clean energy grid.” Ken Cook, President of the Environmental Working Group .
“California regulators just rushed through a plan to make rooftop solar more expensive as the climate crisis spirals out of control. The commission has taken a step back by widening the gap between those who can afford solar power and those who cant. It is an affront to low-income communities, who are first and hardest hit by the climate crisis, and we will do everything we can to convince the commission to fix the deep flaws in their proposal." Roger Lin, attorney, energy justice, Center for Biological Diversity .
“The California solar market took a hit last week with reduced solar net metering benefits (NEM3.0), hurting payback for new customers beginning in April 2023. However, it is a Big opportunity for California battery manufacturers and installers: we need more supply, lower prices, faster sales, and easier plug-and-play integration. Germany underwent similar changes to its NEM policy in 2013, spurring a shift towards self-consumption of solar: today, storage matches 90% of new German residential solar sales. And then Hawaii went through the same thing when the NEM was phased out in 2015, and there, too, storage is now matched at 90% of new residential solar sales. California will be no different and it will be a trillion dollar opportunity for solar installers to adopt storage quickly – only 10% of new California solar buyers get storage today.” Deep Chakraborty, Co-Founder and CEO ofEnact Systems .
“The new rooftop solar program update is a win for all parties. Encouraging battery-paired solar systems will provide reliability, affordability and climate benefits. We need solar energy. He has helped make California a world leader in clean energy. But we have to do more. The use of clean energy during the day should extend into the night. Solar power with batteries does exactly that. It is the next step toward a clean energy future that will improve the air we breathe, the communities we live in, and our overall quality of life.” Matt Baker, director of the Public Advocates Office .
“More than a hundred thousand citizens of California protested against the PD. The PD included two absolutely barbaric features: a network access charge and a plan to impose the harsh new conditions retroactively. It also included a third outrage: export compensation for slash and burn. The authors of the PD gave in and eliminated the first two barbarities. But they dropped the third, continuing the false cost shifting “from the poor to the rich” argument. They continued to use the DSM cost-benefit tests to evaluate rooftop solar. This evidence is irrelevant, as utilities do not offer financial incentives to install rooftop solar panels, unlike DSM, where incentives run to $1.5 billion annually. Some strident voices argue that the NEM is about the survival of the solar industry. Clients dont think about it. Customers want to reduce their energy bills, which are skyrocketing." Dr.Ahmad Faruqui , economist and tariff design expert.
“Solar advocates are proud to have been able to fight the most egregious attacks on rooftop solar that the CPUC included in its previous proposed changes to net metering. We stopped a discriminatory solar tax and protected existing solar energy users from a broken deal. Still, the CPUC-approved changes to net metering are a step back when we really need to move forward with solar and battery storage. Its a dark day in California as utility regulators try to block out the sun. Despite this setback, the solar movement will continue to look for ways to keep rooftop solar growing and affordable in California,” said Bernadette Del Chiaro, CEO of theCalifornia Solar Energy and Storage Association . |
