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California Members: NEM3.0 impact on NEM1/2 customers and what to do?

So Rooftop solar can be net zero power consumption, and also impose a $$ tax on the homeowners.
Their true colors are showing.

Maybe I should call my system a "non profit", take money from other homeowners, and let surplus generation be credited to them.
 
Does being in PGE vs. SDGE have any impact to these potential rule changes?
Yes, there are subtle differences between the three Investor Owned Utility tariffs. The devil is in the details. People in Municipal Utilities such as LADWP, SMUD and others are not affected.
 
What about San Jose which decided to grab all electric customers (non-PV first, followed by PV)?
They have been following same terms and prices as PG&E except discounting rates a fraction of a penny so they can say they give everyone a better deal.
(In the event a customer doesn't pay their bill, San Jose dumps all deadbeats back on PG&E. We take the profits, give you the losses.)

I've assumed the $8/kW/month charge and the 25% of retail credit for exports proposed by CPUC for NEM 3.0 would be adopted by them.
 
What about San Jose which decided to grab all electric customers (non-PV first, followed by PV)?
They have been following same terms and prices as PG&E except discounting rates a fraction of a penny so they can say they give everyone a better deal.
(In the event a customer doesn't pay their bill, San Jose dumps all deadbeats back on PG&E. We take the profits, give you the losses.)

I've assumed the $8/kW/month charge and the 25% of retail credit for exports proposed by CPUC for NEM 3.0 would be adopted by them.
Not to be a stickler, but because the Successor Tariff is a monthly bill with no credit carrying forward to the next month, it is nit NEM.

The Preliminary Decision from the CPUC contains a full paragraph explaining why the ST should not be called ‘NEM 3.0’

NEM is dead, long live NEM ;)
 
What about San Jose which decided to grab all electric customers (non-PV first, followed by PV)?
San Jose Clean Energy is a CCA. (Community Choice Aggregation) provider who sells the generation portion to PG&Es customers. As far as I know they are not regulated by the CPUC and will not benefit from many of the changes proposed in the Successor Tariff. I am in Sonoma Clean Power and used to attend their meetings before COVID. I
am not up to speed on where the CCAs are with regard to the Successor Tariff but my guess it will also be tough on them because the IOUs saw them as competition and stacked the deck to get more rate changes on the distribution side of the ledger and not on the generation side of the ledger
 
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You’ll have 15 years before you have anything to worry about. The final decision is expected in January but you should check what transition date has been spelled-out in the Preliminary Decision (I believe it was when the utilities had the ST set up for activation, expected by ~July 2022).

In addition, as a new customer, you’ll have a year to decide if you want to take advantage of their incentives to add a battery to your system (so you are actually in the best of all worlds).
Thank you. Do you know how it would work if I increase the size of my system after the cutoff date? Do I keep my benefits or am I moved to the less favorable NEM terms?
 
Do you know how it would work if I increase the size of my system after the cutoff date?
I do not know but it may be in the proposed Tariff.
Do I keep my benefits or am I moved to the less favorable NEM terms?
I would assume the worst case that you might lose your grandfathered benefits. There is some time to figure that out. All anyone can do is to develope a strategy that optimizes our own economics.
 
I just heard that the decision on the Proposed Tariff has been delayed until some time in February. Governor Newsom has said changes need to be made but has given no clue as to what needs to be changed.
 
I just heard that the decision on the Proposed Tariff has been delayed until some time in February. Governor Newsom has said changes need to be made but has given no clue as to what needs to be changed.
Yeah, just saw that myself. It would be great if he forced them to revise their decision to lop 5 years off of the legacy grandfathering period, but I suspect his concern is likely to be more focused on new solar customers.

For them, it’s the greatly increased timeframe to breakeven and the reduced credits being offered for exported energy that is the greatest concern so I’m guessing he’ll be may be asking them to reconsider that aspect (and possibly split the difference versus where things are today for sure he next 5 year cycle when it’ll be the next governor’s problem…).
 
I'm more concerned that NEM 3.0 proposal requires rooftop PV users to donate all power not used immediately to PG&E for free.
(most power is generated during middle of the day when we're at work and have little consumption at home.)

Combine that with state mandate of rooftop PV for new homes, and it is a requirement prospective homeowners invest in power generation which benefits PG&E, gives the homeowner nothing (except "visitation" rights to power production on weekends?)
 
I'm more concerned that NEM 3.0 proposal requires rooftop PV users to donate all power not used immediately to PG&E for free.
(most power is generated during middle of the day when we're at work and have little consumption at home.)

Combine that with state mandate of rooftop PV for new homes, and it is a requirement prospective homeowners invest in power generation which benefits PG&E, gives the homeowner nothing (except "visitation" rights to power production on weekends?)
Yes, that is the ‘reduced credit’ I was referring to.

Some reduction of the credit given for export could be sensible to incentivize addition of storage to new solar installs.

The biggest issue is that any reduction in export credit also impact the ability of summertime excess generation to offset wintertime consumption when solar generation is at it’s minimum.

This translates to needing to install a larger solar array if you want to offset your annual electrical bill (50-100% larger).

Solar panels are getting cheaper and cheaper, so even that is not the end of the world, but then tacking an array-size-based monthly ‘grid access fee’ on top of that seems like a deal-killer (especially since those that invest in a larger array to offset winter consumption will get taxed more for their reduced consumption.

I’d be OK with almost any proposal that charges all customers the same monthly fees (not just solar customers) for both grid access and consumption/import and then credits export at non-retail rates.

That will essentially force all new solar installs to integrate a battery (which is one of the stated goals of the Successor Tariff) but at l east it will be possible to invest in a hybrid system to offset full annual electrical cost without being taxed on the generation capability of your investment.

And with solar cost trends and now especially battery trends continuing their inexorable march towards lower and lower $/W and $/Wh, it’s pretty much guaranteed that more and more customers will decide to invest in solar (which is one of California’s stated goals but certainly not the IOUs and semi MMG not the CPUCs based on their preliminary decision.

A few more tidbits on the ‘delay’ in this write-up: https://www.sandiegouniontribune.co...ifornia-net-metering-solar-proposal?_amp=true
 
Several sources have mentioned that the hearing on this has been indefinitely postponed.
 
Aside from absolutely killing any new installs
I know there is 9 pages since this, but new to the thread here - Yes, no one would choose to do a new install, except new codes REQUIRE new construction to have solar...What BS!
 
I know there is 9 pages since this, but new to the thread here - Yes, no one would choose to do a new install, except new codes REQUIRE new construction to have solar...What BS!
In many/most cases, the laws actually just require new construction to be ‘solar ready’ rather than requiring an array to be built and connected.

So racking system and probably also home-run wiring. If the law actually requires a full install and then it’s taxed in a way that makes it non-economic, I’d be with you, but I’m all for requiring the basic infrastructure for installing solar panels to be put in place when everything is opened up and it cheap (dramatically lowers the cost of adding a solar array later, assuming that continues to make sense).

So now they have decided to delay any changes to the existing NEM 2.0 structure while also approving a rate increase to cover wildfire-related costs.

Who knows whether this can will continue to be kicked down the road for a full 5-year cycle or not, but the one thing that’s certain is that the next ‘benefits analysts’ will show an even greater gap between solar and non-solar customers…
 
new codes REQUIRE new construction to have solar
The technical requirement is that they be Zero Net Energy with some exceptions for Natural Gas. This is a high level definition;
  • ZNE building - An energy-efficient building where, on a source energy basis, the actual annual consumed energy is less than or equal to the on-site renewable generated energy.
The easiest way to get to that calculation is to add rooftop solar and other energy efficient construction devices. Participation in a Community Solar project is also an alternative.
 
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So PG&E is operating cheap to increase their profit. Their old and poorly maintained equipment fails in a wind storm and starts a fire. And now they get to bill their customers more to pay for the damages they caused, while shutting off power to those customers. Hmmm. Does anyone else see a problem with this?

My January 2022 bill from So Cal Edison came with new higher rates as well. My off peak went from 20 cents to 30 cents, and on peak went from 40 cents to 49 cents. Those are a huge increase. 50% and 22.5% over what they were last year. But by adding the cost there, it is actually making my solar panels worth more. Just think about it. Every kilowatt my panels make is now worth 50% more to not have to buy the power from them. So even if every bit of energy I make is off peak, my 8 megawatt hours I made in one year is now $2,400 worth of electricity. That just dropped the payoff of my solar back under 8 years.

And the DC panels I want to add, which will make the power I use during peak rat, is now going to be generating 49 cent power. It is a smaller system, only 2,500 watts or so. So let's say it will make 1/3 of the power (it should do better, even with battery charging losses) but that's still 2,700 kilowatt hours at 49 cents is over $1,300 USD. If I want this added gear to pay off in 5 years, that gives me a budget of over $6,000 to spend on DC charging my battery bank.

What is going to mess this up is when they start to impose non energy charges. I really do not see how they can justify charging people for just having solar panels. That just needs to go away. But if they charge the rate structure, I can see something like this... Drop the price per kilowatt hour in half, for all customers, but then charge half of an average electric bill for a non solar user in "Grid maintenance charges". What that does is non solar customers pay the same, and even someone making all of their own power still has to pay half even if they never use a single watt hour. I can see some form of that passing, but they will need to be very careful how they word it to make sure it does not throw red flags. I would not object to a moderate fixed charge for keeping the grid available. But it can't be totally put on just solar customers.

And then there is the big debate about wholesale vs retail rate for energy pushed back to the grid. As much as I like getting full retail credit, I can see where this is not fair to the grid operator. Let's be honest, they do not pay any other source at those rates for electricity going to the grid. Going to 25% credit seems a bit low, but not totally out of line either. I think this will push more people to install storage, and make companies work on better time of use management software to allow solar plus storage customers to truly self consume all of our energy we produce. Who cares if they won't pay us for exported energy, if we never export any? Ideally, I want to store all the excess, and then use it all night, and basically run off grid unless my production falls short.
 
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