California’s clean energy portfolio is diversified with sources of electricity including solar, wind, hydro, and energy storage. While it’s possible that the California Legislature could take away net metering, it’s unlikely they would do so without a clear plan. California’s clean energy goals are often updated to reflect the latest technology and energy priorities of its voters. And even if California does decide to eliminate net metering, it’s unlikely that other states will follow along with such a radical policy change.
Net metering is often a confusing concept, but the basic idea is simple: you get credit on your bill for the net amount of energy that you put back into the grid during an energy billing cycle.
Currently, net metering is available to all customers who meet the eligibility requirements. However, the California Legislature is considering several proposals that could eliminate net metering, including one that would make solar power a “third party” purchase for the utility. While it’s possible that the legislature could change the rules, California is one of the most solar-friendly states in the country, so it’s likely that net metering will continue to be available for years to come.
Net metering is different from time of use (TOU) programs, which allow energy providers to charge you more during peak hours so that your energy use is more likely to go down during those hours, which can lower your overall energy bill.
At this time, no California lawmaker has proposed repealing the state’s net metering policy. However, the California Energy Commission recently issued a report outlining potential ways the state could move away from net metering and onto TOU programs.
If your solar panels are producing more energy than you are using, you may actually end up getting a bill in the negative.
The California Energy Commission predicts that California will have enough capacity in solar PV to meet the energy needs of all of its residents by 2050. The commission predicts that by 2020, California will have enough energy from solar to power every home in the state, and by 2050, it says that California will have enough energy from solar to power every home in California without using any energy from the traditional grid at all!
The idea of net metering is simple: you get credit for the energy you put back into the grid.
As California continues to grapple with implementing a clean energy future, net metering is a hot topic. The California Consumer Power and Conservation Law (CCPCL) requires investor-owned utilities (IOUs) to offer programs for excess solar energy generated by their customers. Currently, the California Public Utilities Commission (CPUC) is reviewing a proposed rule that would allow for a two-tiered default rate for net metering. This means that customers who do not opt-in to the program would pay a higher rate for their electricity use or pay a flat rate.
The problem is that net metering has been getting more complicated, and it is unclear what will happen in California under the new rules.
California’s new net metering rules don’t spell out whether the state will end net metering, and the situation is complicated by the fact that the California Energy Commission (CEC) wants more information before making a final decision.
The net metering program has been operating in California for a long time, but the rules have changed in the past few years.
California’s net metering programs are in place to ensure that there is no over-generation of solar energy that causes your home to use more electricity than you pay for from the grid. Currently the programs are working. A recent report by the California Solar & Storage Association found that the California Energy Commission is on track to meet its 2020 goals including having 1,600 megawatts of solar capacity and 1,200 megawatts of storage by then.
There are currently states that have net metering programs, but California is unique in that net metering is tied to an energy storage system.
As it stands, the future of the California net metering program is still up in the air. The California Public Utilities Commission (CPUC) issued a decision in December 2019 that could potentially end the program. The commission’s decision would require solar customers to pay for the grid services they use, such as emergency response and maintenance.
Conclusion
If the IOUs want to make money, they will need to have a competitive rate for solar power. This will motivate homeowners to get solar panels and sell their excess energy back to the grid at a lower rate. And that will help keep the net metering program afloat.
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