Virtually a yr after its first proposed NEM 3.0 choice that despatched the state’s photo voltaic business right into a frenzy, the California Public Utilities Fee (CPUC) has launched a brand new model. In the present day’s proposal features a shift to internet billing, a glide path to transition slowly to the brand new plan and non-bypassable fees.
NEM 3.0 historical past
The CPUC’s preliminary proposed choice in 2021 included a swap from internet metering to internet billing, permitting the greenback worth of credit to be set at a unique stage than the vitality’s import value; a Grid Participation Cost for photo voltaic clients and a long-term Market Transition Credit score to encourage storage paired with photo voltaic programs. Wooden Mackenzie predicted the preliminary proposal would reduce California’s residential photo voltaic market in half by 2024.
The preliminary proposed choice was shelved for an indefinite period of time after intense backlash and public disapproval from Governor Newsom. In spring 2022, the CPUC reopened the file below new management.
2022 NEM 3.0 proposal
The brand new proposed choice launched on Nov. 10, 2022, additionally features a shift to internet billing, a glide path to transition slowly to the brand new plan and non-bypassable fees.
The brand new Retail Export Compensation Charges that make up the online billing plan can be primarily based on hourly Prevented Price Calculator values averaged throughout days in a month, differentiated by weekdays and weekends/holidays, in accordance with the fee. The choice was made primarily based on a value of photo voltaic set at $3.30/W. The fee expects the brand new plan to lead to a nine-year payback interval for standalone photo voltaic.
The five-year glide path is within the type of an Prevented Price Calculator adder that varies amongst California’s utilities. The “ACC Plus” adders will stay fixed for a buyer for 9 years from the interconnection date. The adder will lower by 20% yearly till it reaches zero.
The CPUC says SDG&E clients are excluded from the adder as a result of their photo voltaic programs generate extra invoice financial savings on account of SDG&E’s increased electrical charges.
This system additionally consists of 4 non-bypassable fees. These fees are: the general public objective program cost, nuclear decommissioning cost, competitors transition cost and the Wildfire Fund Non-Bypassable Cost.
The NEM 2.0 Sundown Interval begins with adoption of this choice, which is predicted to occur in December. Prospects submitting a accomplished interconnection utility previous to the tip of the Sundown Interval can be thought of relevant for the present NEM 2.0 tariff. In line with the choice textual content, the fee will implement the NEM 2.0 tariff sundown marking the tip of the Sundown Interval no later than 120 days after the adoption of this choice, at which era no further clients can be permitted to take service below the NEM 2.0 tariff.
NEM 1.0 and a couple of.0 clients will stay below their applications unchanged.
The California Photo voltaic & Storage Affiliation (CALSSA) beforehand mentioned it might consider the brand new proposed choice primarily based on whether or not it imposes any discriminatory photo voltaic taxes, impacts the economics of photo voltaic for center and dealing class households, impedes the state’s clear vitality targets and extra. The group issued a response on Thursday saying that although it doesn’t embody any “photo voltaic taxes,” extra changes must be made to the choice, as it might make photo voltaic much less reasonably priced by lowering the credit score shoppers obtain for contributing their extra photo voltaic vitality again to the facility grid, referred to as export charges.
“The photo voltaic business and clear vitality supporters are nonetheless reviewing the CPUC’s proposed choice, however primarily based on an preliminary evaluation, it might reduce the common export charge in California from $0.30 per kilowatt to $0.08 per kilowatt and make these cuts efficient in April 2023, leading to a 75% discount in worth of exports,” CALSSA mentioned in a launch.
“The CPUC’s new proposed choice would actually damage. It wants extra work or it can substitute the photo voltaic tax with a steep photo voltaic decline. A right away 75% discount of internet vitality metering credit doesn’t help a rising photo voltaic market in California,” mentioned Bernadette Del Chiaro, government director of CALSSA, in an emailed assertion.
“If handed as is, the CPUC’s proposal would defend utility monopolies and increase their income, whereas making photo voltaic much less reasonably priced and delaying the objective of 100% clear vitality. California wants extra solar energy and extra solar-charged batteries, not much less. We urge Governor Newsom and the CPUC to make additional changes to assist extra middle- and working-class shoppers in addition to colleges and farms entry reasonably priced, dependable, clear vitality,” she continued.
The CPUC will hear oral arguments from all stakeholders within the type of two- to three-minute shows at a remote meeting on November 16 from 10 a.m. to 12 p.m. PT. Viewers can signal as much as watch the arguments here.
Learn the total proposed choice right here. Go to the NEM Revisit webpage here.
Up to date with CALSSA’s response at 2:34 p.m. ET