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California Assembly Member Laura Friedman has introduced a bill to require the California Public Utilities Commission (CPUC) to take into account the costs and benefits of rooftop solar and its non-energy benefits when designing net metering rates.
California Assembly Member Laura Friedman has introduced AB 2256, which would require the CPUC to fully take into account the costs and benefits of rooftop solar when reviewing its net energy metering (NEM) rate. .
The bill would require the CPUC to consider the full benefits of rooftop solar, including improved air and water quality, avoided land use impacts, and associated cost benefits. system.
“Currently, the CPUC only considers some of the economic benefits of rooftop solar,” a fact sheet on the bill says. “As NEM is not simply a rate structure, but rather a far-reaching policy initiative with goals and outcomes that will shape the future of clean energy and climate change in California, it is critical that policymakers consider the entire relevant information in the redesign of the rate that has proven to be integral to meeting our climate objectives.”
NEM helped California launch the nations leading rooftop solar market, achieving Governor Schwarzeneggers Million Rooftop Solar Initiative, and under NEM the state has since reached two million rooftop solar milestones.
According to forecasts from the California Air Resources Board, the state needs to double rooftop solar power to reach goals of 90% emissions-free electricity by 2035 and 100% emissions-free electricity by 2045.
Californias rooftop solar market has come to a standstill since the NEM 3.0 ruling was implemented. The tariff structure reduces compensation for electricity exports. The tariff structure reduces compensation for exported solar production by approximately 75% and makes batteries an essential component of a residential solar project. This, combined with high interest rates, has worsened customer economics for rooftop solar, making it no longer a cash flow positive investment in many cases, said installer HES Solar.
The California Solar and Storage Association (CALSSA) said that about 17,000 jobs have been lost, that demand for rooftop solar has fallen by around 80% and that solar company insurer Solar Insure declared to pv magazine United States that 75% of its covered companies are considered “high risk” of bankruptcy. Major publicly traded global equipment suppliers such as Enphase and SolarEdge have made significant workforce cuts.
The California Energy Commission (CEC) projects that the state will need to build 6 GW of solar plus storage each year for the next 26 years in a row to meet the 2045 goal. Over the past five years, California has only achieved an average of half the figure of 6 GW. In recent years, the state has installed an average of 2.3 GW of utility-scale solar plus storage, far behind the pace needed to reach the mid-century goal of 100% carbon-free energy. CALSSA affirms that the objective is impossible to achieve with a public service scale model, towards which the state seems to be heading.
Save Solar Coalition
Also this week, more than 60 organizations sent letters to Governor Gavin Newsom, state legislative leaders and the CPUC calling for immediate action to restore the growth of rooftop solar energy in the state. The letter to the governor can be found here.
The coalition made several calls to get rooftop solar and storage back on track, including:
First, make sure that the State does no more harm . The first order of business should be to recap the fixed rates authorized by AB 205. High fixed rates discourage energy conservation. High fixed charges discourage energy conservation and efficiency and further harm the economics of solar energy.
Second, delay the implementation of the NEM Virtual and NEM Aggregate decision scheduled to take effect on February 14, 2024 and restore the ability of multi-metered properties, such as schools, farms, apartment buildings and shopping centers to self-generate and self-consume solar energy on site.
Battery Rebates : In the Net Billing decision, the California Public Utilities Commission (CPUC) called for $900 million in battery rebates for all types of consumers to help cushion the blow. due to the reduction of credits for solar exports. $280 million of those funds, intended for low-income consumers, were allocated in the 2023-2024 budget, but unfortunately have not yet been disbursed. We ask that you ensure that the CPUC immediately disburses the $280 million appropriated in the 2023-2024 budget for residential storage incentives. This financing can be put in place immediately and expand the benefits of distributed clean energy to low-income Californians. Additionally, please consider making a portion of these funds immediately available for the existing SGIP program that serves middle and working class families.
In the 2024-2025 budget, fulfill the remainder of the $900 million in battery incentives and restore funding delays for solar and storage proposed in your January budget. We understand there is a significant budget shortfall, but these programs are critical to energy reliability, and delays are much more costly in the long run. If any of the $280 million in funds were allocated to the general market, restore the low-income funds to their original amount. Additionally, investing in solar and storage facilities helps increase state tax revenue through solar sales taxes, business income taxes, and energy worker payroll taxes. solar.
Direct the CPUC to immediately reevaluate the value of distributed solar and fully and accurately value all benefits of rooftop solar, including social benefits, in the CPUCs Avoided Costs Calculator.
Unlock the solar potential of all California rooftops . The State should encourage solar energy on large commercial rooftops that can accommodate larger installations by removing the system size limit. If as much solar power were installed as could fit in Californias more than 66,000 warehouses and more than 10,000 department stores, it could power nearly 6 million homes a year, but current regulations limit that type of deployment.
The petitions were signed by Laura Deehan of Environment California, Roger Lin of the Center for Biological Diversity, Bill Allayaud of the Environmental Working Group, and many other California environmental and community leaders. |
