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A Brief History of California’s Solar Agreement, Net Energy Metering

Policy
Solar contractor installing a panel on a roof

As we see the devastating effects of climate change across the globe, most recently in Texas where communities were suffering in freezing temperatures without water or power for days, it has become clearer than ever that we need to transform our power supply to renewable energy in order to increase resiliency. This past summer, California experienced the opposite, where sky high temperatures and demand for air conditioning resulted in rolling blackouts for California residents. In a time where it is crucial to increase the deployment of renewable energy, the United States’ largest solar market, California, is under attack. What happens in California will likely be the example for other states, and this is a crucial battle that we’re on the front lines of right now. 

The success of rooftop solar relies heavily on net energy metering (NEM), a solar producer’s agreement with the electric utility company. At a high level, NEM is a billing structure that allows solar customers to sell their excess electricity back to the grid. The amount is then applied to their utility bills, leaving the solar customer to pay the net amount of energy used. California’s first solar agreement, known as NEM 1.0, was extremely successful and accelerated the transition to solar for California residents, businesses, schools and municipalities. Since then, investor-owned utilities (IOUs) across the state have continuously attacked rooftop solar, proposing egregious policies that would make solar economically infeasible. In 2016 the second solar agreement rolled out initially in the San Diego Gas & Electric utility territory, and made its debut for Pacific Gas & Electric (PG&E) and Southern California Edison in 2017. This successor tariff is known as NEM 2.0, and after a tough battle against the utility companies, the California Public Utilities Commission decided that the new solar rate would be similar to the first, maintaining the major benefit of allowing customers to sell electricity back to the grid at retail rates. However, NEM 2.0 required all solar customers to transition to a time-of-use (TOU) rate and non-bypassable rates. Under a TOU rate, a customer is charged different rates based on the time of the day with designated on peak and off peak times. The highest rates are during peak demand, which is late afternoon and early evening, while off peak times occur early in the morning and late at night and have the lowest cost. The new rate structure under NEM 2.0 has serious implications for solar customers, because it changes the value of the energy sold to the grid based on the time. This means that in order to get the highest NEM credits, customers need to sell the bulk of their energy during peak hours. Although NEM 2.0 is substantially less beneficial to solar customers compared to its predecessor, it still retained the major benefits of being able to sell energy back to the grid. Solar companies even began to adapt to TOU rates by designing solar systems to face west in order to capture the maximum energy possible during the late afternoon. Now, California’s IOUs are attempting to make modifications to net metering, ushering in NEM 3.0. 

As details of NEM 3.0 continue to unfold at the California Public Utilities Commission, it is clear that the IOUs are calling for drastic cuts to NEM. The California Solar and Storage Association (CALSSA) estimates that the economic value of going solar will be reduced by 50-75 percent with the IOU’s proposed changes. Decisions made during these proceedings will not only affect new solar customers, but existing customers as well as the IOUs have proposed removing grandfathering periods for current customers, essentially forcing all solar customers onto NEM 3.0. 

With the understanding that NEM 3.0 could kill rooftop solar and that California is a leader and looked to as a model for shaping renewable energy programs, it is not an understatement to say that we are fighting to save solar. We are calling on organizations to sign this net metering letter and individuals to sign this petition, by early April, which will be sent to Governor Gavin Newsom and the California Public Utilities Commision. 

Our founder, Tara Hammond, began a small local coalition to save rooftop solar in California last year and the coalition has quickly grown to a statewide grassroots effort, with more than 70 organizations being involved. To learn more or to join the battle, please reach out to our Climate Justice Policy Advisor, Karinna Gonzalez at karinna@hammondclimatesolutions.com.

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Let’s Go! San Diego Transit Relief

Do you live in San Diego County? How satisfied are you with the current state of roads and public transportation? You may be approached, if you have not been already, with these questions by a friendly volunteer in the next few months as the November 2023 deadline to submit measures for the 2024 ballot quickly approaches.

The County’s transit infrastructure has been in decline for many years now. Local governments in the region have poured millions of taxpayers’ dollars into expanding freeways, but we know from looking at Los Angeles and other regions that more lanes increase the number of cars on the road. More cars on the road means more air pollution, which disproportionately burdens the health and well-being of BIPOC communities and communities of concern. 

It’s time for us to come together and create change. Let’s Go! San Diego is a campaign focused on building a better future for local families by delivering essential transportation improvements: reducing congestion, upgrading highway safety, fixing roads and making public transit more reliable and accessible. Some of the other projects that Let’s Go! will fund include:

  • Purple trolley line extending from South County to Sorrento Valley
  • Moving Rail Line connecting to San Diego International Airport
  • Increased service on bus and trolley routes
  • Habitat preservation and stormwater upgrades

Vehicles make up 50 percent of greenhouse gas emissions in California, 80 percent of nitrogen oxide pollution and 90 percent of diesel particulate matter pollution. Thus, an improvement to our transportation system means progress for meeting local and statewide climate goals

So, how will this be funded? The measure proposes a half-cent increase to the County’s sales tax, meaning for every $20 you spend, $0.10 will go towards improving our transit system. Tax increases are not often appealing, however, we wholeheartedly believe that the impact of this measure far outweighs the individual costs. The lack of viable transportation alternatives for County residents limits access to jobs, education, medical offices and recreational facilities. San Diego County needs more and better options, which is why it is crucial that residents bring this measure into next year’s ballot.

The broad coalition supporting this important effort is composed of over 30 nonprofits, unions, environment groups and businesses. Launched by SanDiego350 and the Environmental Health Coalition, this grassroots effort continues to grow in strength. Check out the complete list of endorsements here: Let’s Go! San Diego Endorsements.

If you haven’t signed the petition yet, visit one of the locations here to bring this measure one step closer to becoming a reality. Also, consider joining the campaign to stay up to date on our progress and spread awareness to friends, family and neighbors so that San Diego may deliver long-awaited transit improvements to the County.

Photo Credit: Let’s Go! San Diego

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The Future of Schools is Electric

I (Karen Cederholm, Hammond Climate Solutions Foundation Climate Justice Intern) remember when my high school installed solar panels in its vast and barren parking lot; the blacktop used to capture so much heat you could feel it radiate back up at the end of the day. It was wonderful to see that the empty space was now producing clean energy while also providing shade to student and faculty vehicles during a typical sunny day in San Diego. Now, students from other schools within the San Diego Unified School District (SDUSD) will be able to see this transition as well as the Board of Education recently passed a fossil fuel free resolution on April 26, 2023 to make all schools in the district fully electric.

Spearheaded by the Schools Team of the San Diego Building Electrification Coalition, which we are members of, activists and students worked effortfully to call upon the Board of Education to commit the district to phasing out the use of fossil fuels. SanDiego350 garnered over 600 signatures on its petition and organized a rally outside of the district office on April 25 before the board meeting, demanding the adoption of a clean energy resolution. Participants also made comments to the board during the meeting, advocating for a fossil fuel free future (check out the Fossil Fuel Free Pledge where businesses, nonprofits, philanthropists and elected officials make this commitment!). With this new resolution, bus fleets and maintenance vehicles currently running on fossil fuels will be phased out, appliances in existing buildings will be replaced with electric ones and a reach code will be established for new construction. A Green Jobs curriculum will also be established to raise awareness of environmentally focused professions, and SDUSD will enroll in San Diego Community Power’s Power100 by the end of 2024, using 100 percent renewable and carbon-free energy.

This transition to clean energy is happening nationwide. The Environmental Protection Agency currently has a Clean School Bus Program running through 2026 that is distributing $1 billion to 389 public and charter school districts, and so far there are over 5,000 committed electric school buses across the U.S. Our own Solar Moonshot Program helps organizations make the switch to solar energy affordable by awarding grants to nonprofits. Solar and storage systems act as resilience hubs for schools and the surrounding community, and so far we have helped 9 solar projects happen across the country. Right now, we have $750,000 to help schools across the U.S. adopt solar power. If you know of an educational institution that wants to go solar but requires additional funding, consider sharing or submitting an application, which is located at the bottom of our Solar Moonshot Program page (www.solarmoonshot.org). 

Times are changing, and it’s more important than ever for public entities to get behind a green future. These switches are vital to improving the health of students, providing equitable education and reducing the human-carbon footprint that worsens climate change. If you are interested in reading more about climate education and why it matters, check out our previous blog post.

Photo credit: Solar Moonshot Program awardee, School District of West Salem

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Earth Day 2023: Invest in Our Planet

Earth Day is an annual event created to celebrate and be thankful for everything the Earth does for us. It is a time to strengthen our relationship with nature, give back as well as find ways to protect our planet for current and future generations. The theme for Earth Day this year is “Invest in Our Planet.” This theme resonates with me (Danylo Lesko, Hammond Climate Solutions Foundation’s Climate Justice Intern) as a current graduate student because education is the best way to invest in our planet. Education is critical in driving the transition to a sustainable future, providing the tools and resources for future generations to adapt to and address the climate crisis justly and equitably. By increasing the accessibility and quality of environmental education and shaping people’s knowledge, attitudes and behaviors towards the climate crisis, the world will see more effective, equitable and participatory change. Education can encourage people to change their behavior and attitudes and help them make informed decisions. It can empower all people and help motivate our youth to take action. 

Investing in climate education is essential to provide the tools and skills needed to drive a transition to a sustainable world. The climate crisis is magnifying the inequalities present in our societies, requiring innovative solutions that address these vulnerabilities. Investing in environmental and climate education can help change behaviors that harm the environment and transform attitudes and knowledge towards actions that promote positive environmental outcomes. Forward-thinking education needs to adapt to a rapidly changing world and provide future generations with the knowledge and practical skills they need to protect our planet and those who depend on it. Orienting education to include climate action and climate justice are important steps that help provide pathways for greater involvement and societal transformation. Enhancing climate literacy by including climate justice and climate equity will help ensure students develop confidence and passion for making a positive difference in society as activists and leaders. 

The climate crisis has already impacted young people with various concerns about their future, including where they will live, what work they will do and their quality of life. There is no national consensus about the importance of climate education, and the U.S. needs to have national science standards. Instead, each state determines what its schools teach, which can vary significantly between states. In 2012, the Next Generation Science Standards were developed to create a science standard for climate education. However, the standards are voluntary, and only some states have adopted these standards. Climate education allows for people to care for the planet while caring for each other. Social-emotional learning refers to the skills people need to be successful in life, such as goal setting, managing emotions, problem-solving, cultivating empathy, relationship skills and self-awareness. Incorporating social-emotional learning in climate education recognizes that humans are part of nature, helping promote an understanding of environmental justice issues and fostering collaborative problem-solving that addresses both planetary and human needs. Investing in climate education provides pathways for future generations to explore solutions that tackle the challenges of today and tomorrow. Investing in climate education is a way for students not only to learn about the climate crisis, but it also provides an opportunity for students to realize their own agency as climate justice leaders through interdisciplinary approaches rooted in social justice. 

Student leaders in Portland, Oregon helped transform climate education in the Portland Public Schools by advocating for a greater focus on climate and equity in their education. These student leaders helped initiate a climate justice curriculum that highlights climate resilience and how responsive the earth and marginalized and frontlines communities are to the impacts of climate change. Throughout the curriculum, students gain a deep understanding of how intertwined the climate crisis and climate justice really are and the ways both impact every aspect of their lives. A big part of this curriculum is looking at solutions and policy, which gives students an opportunity to identify how they can take action to address climate action and climate justice head on. Such approaches provide students with the background information they need to engage in activism that is very meaningful while providing a way to combat climate anxieties they may feel and empowering students to become transformative racial equity leaders and global stewards. When climate education is rooted in social equity that empowers students to take intersectional approaches that address all aspects of the climate crisis it helps lift up communities that are disproportionately affected, helping lift everyone with them. 

Each of us has the effective power to make our voices heard through the choices we make, our civic actions and personal interactions. What we do and how we do it has a huge impact on the planet and civic society. We can use our power to support actions that protect our environment and investing in education provides a pathway for collective action and transformation! We invite you to celebrate Earth Day this year by supporting climate education in your communities, and what better way than turning learning into action? Find an Earth Day event near you here, join in climate activism and celebrate the accomplishments of advancing climate justice and equity! 

Photo credit: Earth Day

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