California affirms retail net metering fair payment for solar
The California Public Utilities Commission ("CPUC") released a Proposed Decision on Tuesday, which outlines a set of reforms for net metering. Critically, the Decision, which is the result of a thorough Commission-led stakeholder process, affirms that net metering with full retail credit is the fair and balanced path forward for California energy consumers.
According to an article by Greentech Media:
The CPUC decision "comes after years of debate and uncertainty over the state’s solar future. A 2013 state law, AB 327, ordered the CPUC to create a successor program to the existing net-metering program, which is close to expiring as the state’s big investor-owned utilities approach their 5 percent caps.
AB 327 also required the CPUC to come up with new ways to value the costs and benefits of net-metered solar. That includes figuring out the costs of maintaining the grid when so many distributed solar systems are connected.
The biggest dispute has been over what rate to pay net-metered customers. Today, they’re paid at retail rates. Many solar advocates think it's a simple and fair form of compensation that shouldn't be changed.
But utilities Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric asked the CPUC for big cuts, with proposals ranging from roughly half the going retail rate, to as low as a few cents per kilowatt-hour.
Tuesday’s proposed decision, however, specifically declines to 'impose any demand charges, grid access charges, installed capacity fees, standby fees, or similar fixed charges on NEM residential customers,' while the commission continues to evaluate the need for them. That’s a big victory for the solar industry, which has fought hard for keeping the retail rate."
Read more about the Proposed Decision and potential impact on solar in California here.
