What’s At Issue. “The California Public Utilities Commission (CPUC) has released a decision that is harmful to the value of solar for farms, renters in multifamily housing, and schools.
The decision sets hard limits on how much electricity produced by solar can be self-consumed by multi-meter properties. The policy effectively forces customers to first sell their solar production to the utility at low rates, and then buy it back at higher rates.
California’s Virtual Net Metering and Net Energy Metering Aggregation programs allow properties with multiple meters to install a single solar array for the entire property, sharing one system’s electricity and associated net metering credits with all customers and meters on the property. This new decision deems that these customers should be limited in how much of their own solar production they can use, even if it is stored in their own battery.
The decision to not let multi-meter properties consume electricity from a system they own and operate comes with a clear motive: profit protection. If a multi-meter solar owner is using their own electricity, they aren’t buying it from the utility. The CPUC has shown time and again that protecting utility profits is chief among its functions in the last year of rooftop solar rule-making decisions.
“It would force customers in multi-meter properties—such as renters, small farmers, schools, and colleges—to sell all of their generation to the utility at low rates and buy it back at full retail rates, said the California Solar and Storage Association (CALSSA).”
The decision was passed on November 16th, 2023. It takes effect February 15th, 2024.
What To Do. Ask us for an energy analysis today, get a bid and determine whether solar makes sense for you. The process is free. But it can be lengthy. Applications must be submitted by February 14, 2024 to qualify under NEM 2.0 (9-year contract). The current NEM 2.0 contract compensates solar owners at full retail rates for the power that they produce. And once your application is in and accepted, you have 3 years to build your project. Currently we are seeing payback periods of 2-4 years or in other words a 25%-50% Return-on-Investment on your initial investment. Which provides 5-7 years of free cash flow and a hedge against future utility rate increases. Call us today, 559-410-8640.