California Net Metering 2.0 Update | Solar.com

Please enter a valid zipcode.

California Net Metering 2.0 Update

This afternoon, the California Public Utilities Commission (CPUC) released an updated proposed decision on Net Energy Metering (NEM) 2.0. Here are the key takeaways from the update:

• Fixed the definition of non-bypassable charges to exclude transmission charges, halving the NEM credit reduction from 4.2-5.0 cents/kWh to 2.0-2.3 cents/kWh.
• 20-year grandfathering remains in effect instead of 10-year grandfathering proposed by the public utilities.
• California utilities succeeded in mandating Time-of-Use (TOU) for all NEM 2.0 residential customers of PG&E and SCE once NEM 2.0 goes into effect. SDG&E customers have until five years after their new time-of-use rates are approved (expected early 2017).
• Removed language regarding community solar programs for disadvantaged communities. The postponed decision on alternative tariffs until the next phase of the proceeding.

Overall, the updated decision proposal reflects a win for the solar industry. This is especially significant considering the recent setbacks for solar in states like Nevada and Arizona. While solar is not quite as lucrative under the NEM 2.0 policy, it is still at grid parity or better for most of California. For more information, you can read the entire proposed decision update here. We will post a comprehensive analysis of NEM 2.0 here once the decision is finalized.

Check this video to know more about Net Energy Metering 2.0

 

Return to

Solar Rebates by State in 2023

⇠ Return

See how much solar panels cost in your area.

Please enter a valid zipcode.


Please enter a valid zipcode.

Zero Upfront Cost. Best Price Guaranteed.

Topics

How the Inflation Reduction Act of 2022 Can Lower Your Energy Bills

Update: President Biden signed the Inflation Reduction Act of 2022 into law on August 16, 2022. With a monumental climate bill now law, Americans have...

Learn More

ITC Step Down: Effects on Solar Installation

In August, the Inflation Reduction Act (IRA) increased the federal solar investment tax credit (ITC) from 30% for the next ten years. That's good news...

Learn More

Federal Solar Tax Credit

The federal solar tax credit back to 30%, and there's never been a better time to install solar and start saving on energy costs. On...

Learn More

SRECs: What are Solar Renewable Energy Credits?

With grid electricity prices soaring, home solar is already a means of substantial energy savings. But homeowners in eligible states can sweeten the deal by...

Learn More