Net Energy Metering 2.0

What is Net Energy Metering 1.0 vs 2.0?

Net energy metering in California allows homeowners and businesses to receive bill credits for the excess electricity that their solar panels produce. California’s first net metering set a “cap” for three utility based investors and all three investors were approaching those caps by the end of 2015. To ensure that solar would continue to succeed, the California Public Utilities Commission created a next-generation program that would extend California’s net metering benefits for years to come known as “Net-Metering 2.0”.
Currently with the original policy you bank any excess solar electricity your solar panels produce to use when your solar panels don’t produce enough to meet your monthly use. For every kilowatt hour of solar electricity you put out, you get a bill credit for one kilowatt hour of utility-generated electricity. If your system is the right size, net-metering will cover your electricity use with solar for the whole year

Why lock in your rate now?

Retail rate bill credits will stay preserved in California’s net metering 2.0 making the economics of solar still very favorable. However, for utility customers who install solar before July 1, 2017 or before their net metering cap is reached, whichever comes first, under the original net metering policy will be “grandfathered” in for 20 years from their original enrollment date. For those who don’t get solar installed before the original net metering switches over to net metering 2.0 there will be three main differences:

1. Time- of- use rates

Electricity is most expensive at times of high demand and time-of-use rates are designed to align your electricity costs with demand across the electric grid. If you are using your electricity at those times of high demand your utility will charge you more per kilowatt hour during those “peak hours”. If not grandfathered in with the original net metering program every property owner who installs a solar energy system under net metering 2.0 will automatically be switched over to time-of-use rates for their electric bills.

2. Interconnection fees

An interconnection fee will need to be charged before your solar system can start sending electricity back to the grid, so a representative will need to come out and sign off on the installation after inspecting the system. With the net metering 2.0 your utility company will need you to pay the fee before connecting the solar panels to the electric grid unless you are already grandfathered in with the original net metering system.

3. Non-bypassable charges

Non-bypassable charges are per-kilowatt hour charges adding up to 2-3 cents per kilowatt hour that are built into utility electric rates. These charges go towards funding energy efficiency, low-income customer assistance, and other related programs. Under the new net metering system customers will have to pay the non-bypassable charges, but if you get your system installed before net metering 2.0 begins you will not have to pay non-bypassable charges since the original policy did not require you to do so.

Get a free Quote

Want to know if a new HVAC system would help save you big money? Then call us at (888) 957-2420 or use the button below to request a free quote. There’s no cost and no obligation. So get started now!

Join the Community

Solar Industry News, Videos, Community Discussions and Sharing.