California Votes to Retain System That Pays Solar Users Retail Rate for Excess Power

By Diane Cardwell, The New York Times

Regulators in California, home to more residential solar customers than any other state, agreed on Thursday to retain a system that compensates users of rooftop solar panels for their excess electricity.

The decision was closely watched by energy officials and executives across the country, who are grappling with huge shifts in the power industry stemming from the spread of renewable energy.

“States pay close attention to leading markets, and they pay close attention to how changes to policy impacts markets,” jobs, consumer satisfaction and investment, said Sara Baldwin Auck, regulatory director at the Interstate Renewable Energy Council, a nonprofit policy group that supports clean energy.

Ms. Auck added, “This decision creates certainty for consumers, it creates certainty for clean energy providers, it creates certainty for investors and it upholds California’s strong tradition of clean energy leadership.”

At least 20 states are re-examining their policies, she said. At issue in all of them is how to value electricity when it flows from customers to utilities, rather than the other way around.

Under so-called net metering, customers receive credits on their bills for the unused energy their panels produce. Most states have such policies, but the amounts vary, with some offering credits near wholesale energy prices and others, like California, offering the retail rate.

Solar advocates and installers say customers should receive the retail rate because the power they generate helps the electrical infrastructure, by lowering strain on the grid or helping reduce the need to buy power at expensive prices in times of high demand.

But some ratepayer advocates and the utilities, which lose out on electricity sales and some of the infrastructure costs that are bundled into retail rates, say that solar customers put an undue burden on nonsolar customers, who must make up that shortfall.

In California, regulators sided mainly with the solar industry and its proponents and generally rejected proposals to reduce the net-metering credit and add a slate of new charges, though it added some new rates and fees.

The net-metering program, narrowly approved by a vote of 3-2 by the California Public Utilities Commission, will require that new solar customers pay a one-time interconnection fee, estimated between $75 and $150, and begin paying fees of a few cents a kilowatt-hour that most other customers already pay. Those charges fund low-income and energy efficiency programs.

Solar customers will also be compensated at different rates depending on when they send their excess power to the grid, a change that will alter the economics of the system but not undo its appeal, experts said.

The changes do not affect customers who already have solar panels or who install them before the utilities in their area reach certain levels of rooftop use in their service territories, which the California Solar Energy Industries Association, a trade group, estimates will happen by early next year. And regulators, who are to re-examine net metering again in 2019, left open the possibility that they could revise or add charges.

“Our course is not for the rooftop solar industry or for the utilities or the community clean energy aggregators,” Michael Picker, the utility commission president, said in a prepared statement. “Our decision today is another big step toward giving California consumers more choice, more control and more responsibility over energy and climate change issues.”

Bernadette Del Chiaro, executive director of the California Solar Energy Industries Association, said the decision was an important statement that California would continue to develop microgrids and decentralize energy production.

“It’s a more 21st-century way of generating our electricity,” Ms. Del Chiaro said. “It’s not just net-metering 2.0, it’s grid 2.0 that this decision essentially ushers in.” ...

Source: www.nytimes.com/2016/01/29/business/energy-environment/california-narrowly-votes-to-retain-system-that-pays-solar-users-for-excess-power.html?_r=0

California regulators: Rooftop solar customers keep credit

 By Scott Smith , Associated Press

California homeowners and businesses installing rooftop solar panels can keep offsetting their energy bills by sending surplus power back to the grid, regulators said Thursday in a decision celebrated by the solar industry.

New guidelines narrowly approved by the California Public Utilities Commission add fees to future solar users, but they fall short of what utility companies sought to charge customers for their use of the grid.

Solar customers will pay up to $150 in a onetime fee for connecting to the grid and up to $10 each month. Existing solar customers aren’t affected by the changes approved by the commission in a 3-2 vote.

Bernadette Del Chiaro, executive director of the California Solar Energy Industries Association, said that the ever-dropping costs of solar equipment should offset the new fees.

“At the end of the day, going solar in California will remain a very good economic investment,” Del Chiaro said, adding that Nevada and other states have raised fees on customers, pushing the solar industry out of the market.

“This has been a clear signal that California is building our grid in a different way,” she said. ...

Source: www.washingtonpost.com/national/regulators-rooftop-solar-customers-keep-credit/2016/01/28/fd99d2c2-c620-11e5-b933-31c93021392a_story.html

California regulators approve net metering 2.0

The California Public Utilities Commission has narrowly ruled in favor of a successor program to net metering in the state, which looks generally similar to the original program.

ByChristian Roselund, PV Magazine

A long and contentious process over the future of net metering came to a close this morning in San Francisco, with the California Public Utilities Commission (CPUC) voting 3-2 in favor of a Proposed Decision for a successor program to net metering which was produced the previous afternoon.

The decision preserves many of the basic features of retail-rate net metering, and rejects utility attempts to change the program in ways that would significantly weaken the economics of customer-sited solar. The new program will begin in July 2017 or as soon as net metering caps are reached in the service areas of the state’s three large investor-owned utilities. 

California Solar Energy Industries Association (CalSEIA) estimates that net metering caps will be reached in San Diego Gas & Electric Company's (SDG&E) service area in April and in Pacific Gas & Electric Company's (PG&E) service area in August.

Utility customers who own PV systems at their homes or businesses will receive retail-rate credits for the electricity they generate, minus “non-bypassable” charges of around US$0.02 per kilowatt-hour, which CalSEIA says is a workable solution. These non-bypassable charges will also be applied to virtual net metering systems.

PV system owners will also move to mandatory time-of-use rates in 2018, except San Diego customers, who will have a five-year period to transition from tiered rates. This will not affect businesses and farms which participate in net metering, as such customers are already on mandatory time-of-use rates. Finally, the commission imposed a $150 application fee for new customers in the program.

“It’s hard not to feel good right now in California,” CalSEIA Executive Director Bernadette Del Chiaro told pv magazine. “It was a 3-2 vote and a real nail-biter, but at the end of the day California just protected net metering and that’s huge.” ...

Source: www.pv-magazine.com/news/details/beitrag/breaking--california-regulators-approve-net-metering-20_100022989/#axzz3ygOq3yX2

California Extends Payments for Rooftop Solar Customers

By Carolyn Whetzel, Bloomberg News

Rooftop solar customers of California's three investor-owned utilities will continue to get paid full retail rates for the excess energy their systems generate, under a net metering program the California Public Utilities Commission approved Jan. 28.

In a 3-2 vote, the California Public Utilities Commission updated the existing net energy metering structure. The decision preserved a provision requiring Pacific Gas & Electric Co., Southern California Edison and San Diego Gas & Electric Co. to pay rooftop solar customers the full retail rate for electricity they add to the grid.

...

The California Solar Industries Association said the decision maintains the full retail credit for net metering for 20 years. The updated program also expands access to solar for renters and retains access for farmers, the group said.

“We all know that California is a world leader when it comes to being ‘green,' ” CALSEIA Executive Director Bernardette Del Chiaro said in a written statement. “But today's vote is more than that. It is about California continuing to champion innovation and a different way of doing things, in this case, building a smarter energy grid and allowing individual consumers to generate their own clean energy.”

The new net metering program is effective once existing solar customers meet current participation caps, or July 1, 2017, whichever occurs first, the commission said.

Source: www.bna.com/california-extends-payments-n57982066706/