The CPUC is tasked with creating the successor NEM 2.0 tariff that determines how the state compensates rooftop solar customers. The new net metering regime must balance policies that support the continued growth of rooftop solar, while minimizing the financial burden placed on other utility customers. The new rules will go into effect when utilities in California hit 5% of their nameplate net metered capacity, which some analysts are predicting could happen in early 2016.
The rooftop solar industry in California is facing an unprecedented triple threat as a result of utility attacks on NEM, rate design changes, and the scheduled expiration of the federal solar investment tax credit (ITC) at the end of 2016. These combined policy changes severely threaten the stability and growth of the statewide solar market. CALSEIA has proposed that the current net metering rules remain largely unchanged in their initially submitted proposal to the CPUC.
Energy Toolbase is an industry leading software platform being used by solar professionals to accurately, objectively and transparently analyze the economics of solar and energy storage projects. Policy organizations like CALSEIA are now leveraging the tool to model different scenarios of project payback economics. Accurately analyzing the effect of various changes for specific customers is becoming increasingly complex.
"The math clearly shows that the utilities NEM proposals, coupled with rate design changes and the scheduled ITC expiration, would destroy solar project economics and decimate the statewide solar industry," said Brad Heavner, policy director for CALSEIA. "Energy Toolbase has been a great tool for objectively and transparently running different scenarios to determine the payback for different types of customers."
"Solar contractors all over the country use our software to run analysis. Were excited to now have a premier policy organization like CALSEIA leverage our tool as they fight the good fight," said Adam Gerza, the vice president of business development with Energy Toolbase. "While we obviously hope it doesnt come to this, our upcoming release will offer the ability to model any instances where kilowatt-hour exports to the grid are valued at less than the retail rate."
