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CA’s deadline to go solar to maximize savings is upcoming

Policy

In case you missed it, in December 2022, the California Public Utilities Commission (CPUC) issued a decision that ended a nearly two-year long battle between the investor-owned utilities and environmental groups over the future of rooftop solar in California. Although there was a coalition over 600 strong comprised of environmental and climate change organizations, nonprofits, schools, cities, churches, businesses and elected officials who spent two years urging the CPUC to keep solar growing sustainably, as instructed by law, the CPUC ultimately decided to side with the investor-owned utilities and made significant cuts to agreement solar customers go on, known as net energy metering. You can read more about the coalition here

Under the new net energy metering (NEM) agreement (known as NEM 3), solar customers will get about 75 percent less from the utility for the clean, local and reliable excess energy they share with their neighbors (which the utilities still charge their neighbors full transmission and distribution fees for). Just to give you a sense of how the new tariff compares to what solar customers are receiving currently, compensation for energy will go from an average of $.25/kWh all the way down to about $0.05/kWh. NEM 3 customers will also be forced to go on rates that have higher rates in the evening. All in all, these changes will nearly double the time it takes to pay off a residential system.  

There is some good news.  

If you already have solar, these changes will not affect you! All NEM 1 and NEM 2 customers will continue to receive benefits until their agreement expires, which is 20 years after the system was turned on. The only scenario that would make a customer lose their current NEM status is if a customer adds additional panels that exceed the allocated amount. 

The NEM 3 decision includes a “sunset period” that ends 120 days after the approval of the final decision, meaning anyone who goes solar before the sunset period date is still eligible for NEM 2. In order to go solar and receive maximum benefits, a solar contractor must submit a completed interconnection agreement without significant errors and a signed contract by April 14, although we recommend getting this submitted as soon as possible in case there are errors that need to be resolved. The solar power system can be installed after the cutoff date, so long as the application is submitted by April 14 and it is approved by the utility, however, if any significant changes are made to the equipment being used or system size, that would trigger a new application and cause the customer to lose their NEM 2 status.    

As the proceeding currently stands, customers should be prepared to go solar by the cutoff date, April 14, in order to receive the maximum benefits, however, there is a small possibility that this decision could be reversed entirely. Last month, the Center for Biological Diversity, Environmental Working Group and Protect Our Communities Foundation filed a formal appeal to reverse the CPUC’s final decision. The appeal highlighted ways in which the CPUC violated the law. 

The first and perhaps most obvious issue is that the decision violates a California law requiring the sustainable growth of rooftop solar. The California law is very clear in stating that the new NEM tariff must “ensure that customer-sited renewable distributed generation continues to grow sustainably,” During the course of the proceeding, some commissioner’s even stated that this decision may slow rooftop solar adoption but the CPUC has to consider other issues as well. The appeal rightfully argues that this decision is not the CPUC’s decision to make, as the law is very clear. 

The second issue is that the decision violates another California law that requires the CPUC to put forward an alternative option that would increase solar in communities of concern. The current California law states that any changes to NEM must include an option that will grow solar in “disadvantaged communities.” Not only does the decision actually make rooftop solar more expensive for everyone and disproportionately impacts communities of concern, but the CPUC promises funds to disadvantaged communities that are not available unless the legislature allocates them and are only for battery storage, not rooftop solar. 

  

The overarching issue of the entire proceeding is that the CPUC completely failed to account for all of the benefits and costs of rooftop solar. Any changes to NEM should have been based on the costs and benefits to all ratepayers and the CPUC not only disregarded the benefits of rooftop solar, but also misrepresented the impacts of long distance transmission lines. The appeal claims that in disregarding evidence presented to them, they violated their own process and precedent.  

What's next? 

Although the appeal is strong in its merits, this appeal is simply administrative, meaning that the CPUC has no real timeline to respond to the appeal or make any decisions. If the CPUC fails to respond within 90 days, the organizations that filed the appeal can escalate the appeal to an appeals court, which representatives have stated is the plan. 

The appeal is strong, and has already gained support from groups like 350.org and Solar Rights Alliance, however appeals similar to this have been filed in previous CPUC proceedings and were ultimately dismissed by a court of law and the CPUC. While we should remain optimistic about the appeal, customers should still plan to follow the current deadlines on the table to ensure they don’t miss the opportunity to go solar.   

Bottom line is that if you can go solar now, we recommend it as you’ll be able to maximize your savings and start producing clean energy soon!

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Solar contractor installing a panel on a roof

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

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. 

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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Collage of Hammond Climate Solution Foundation climate events

Celebrating a Productive Year of Climate Action

Hammond Climate Solutions was founded by Tara and Justin Hammond a year ago to help expedite positive change for a just and livable future, and we’re excited to share the strides we’ve made towards our mission during a time that humbled us all.

Hammond Climate Solutions was founded by Tara and Justin Hammond a year ago to help expedite positive change for a just and livable future, and we’re excited to share the strides we’ve made towards our mission during a time that humbled us all.  


Before jumping in, we’d like to acknowledge our talented colleagues Shelah Ott (Climate Justice Advocate) and Karinna Gonzalez (Climate Justice Policy Advisor), who joined the team during our first year.  Their sincere passion and dedication have truly bolstered Hammond Climate Solutions’ impact.   


“When I joined the team six months ago, I knew it would be much more than a job, but I didn’t realize the full extent of the impact we would be making as a small (yet mighty) team. Reflecting on our journey and all of the accomplishments we have made in our advocacy, program management and partnership building, I can confidently say that there is nowhere else I’d rather be. Every step of the way, I have been encouraged and motivated to show up for the climate, for communities traditionally marginalized, and for my team. Working at Hammond Climate Solutions has helped me build skills and perspectives that not only support the creation of a just and livable future, but support self-sustainability, too.” 

- Shelah Ott, Climate Justice Advocate 


“As I join Hammond Climate Solutions at our year one mark, I am filled with gratitude to be joining a team who has already accomplished so much. Looking forward, I am excited to contribute to our amazing portfolio of projects, while advocating for climate policies that create a just and equitable clean energy future.” 

-Karinna Gonzalez, Climate Justice Policy Advisor 


Our work, which is centered on stopping the climate crisis and advancing climate justice, is categorized into three main areas of expertise - climate project management, policy and advocacy.  Below are highlights by category.  

Our Climate Project Management Impact 

During our first year in business we were proudly involved in 341 solar projects, resulting in 186 megawatts of new solar power systems being built across 35 states and Puerto Rico.  This solar capacity is equivalent to more than half a million solar panels, which are now energizing communities with clean energy, improving local air quality, stimulating the local economy and supporting green jobs.  


On behalf of our client Left Coast Fund, Hammond Climate Solutions manages the Solar Moonshot Program, an initiative with an annual budget of $1 million and a mission to help nonprofits afford the switch to solar and reduce the impacts of the climate crisis. 

Last year we worked with 57 nonprofit organizations across the country to help make their solar dreams a reality, and have enabled them to save money that can be reinvested into their missions.  The nonprofits ranged from eco villages to Indigineous resilience organizations, youth homeless shelters, Black women-owned organizations, schools and places of worship.  We have another $1 million budget for Solar Moonshot grants in 2021, which will help fund renewable energy projects for an estimated 40 nonprofit organizations across the nation.   


A handful of Solar Moonshot Program grant recipients have been in our home town of San Diego, including Activist San Diego, Solidarity Farm, Casa de Amparo and University Christian Church.  University Christian Church, home to the San Diego Climate Hub, which we have the pleasure of managing, awarded Hammond Climate Solutions with its “2020 Community Partner of the Year Award.”  This was our first award, and will always be dear to our hearts.


In addition to the Solar Moonshot Program, Hammond Climate Solutions also manages two electric bike “ride off” programs, one for Business for Good San Diego and another for Climate Action Campaign.  With these programs, participants are loaned an e-bike, and for every mile ridden $1 dollar is deducted from the bike loan. The goal of the programs is to ride off the entire loan and replace dirty vehicle miles travelled with human-powered, emission-free transportation.  Hammond Climate Solutions is also a partner of San Diego County’s Pedal Ahead Program, for which we facilitated the procurement of 400 e-bikes through our client’s donations. 


Hammond Climate Solutions was also hired by a local foundation to help secure public funding and get electric vehicle (EV) charging stations installed at nonprofit organizations that support traditionally underrepresented and underfunded communities (especially in respect to green infrastructure).  So far we’ve already secured $42,000 in California Electric Vehicle Infrastructure Program (CAleVIP) rebates, which paired with the foundation’s grants, is providing a nonprofit organization free EV charging stations for their community.  


Our Climate Policy Impact: 

Hammond Climate Solutions proudly signed on to over a dozen coalition letters to elected officials and government bodies, helping to shape policies relating to building energy efficiency standards, clean transportation, climate action plans and energy franchise agreements.  We participated in over 1,150 meetings with elected officials, coalitions and activists discussing climate policies and priorities.  We also started a coalition to protect rooftop solar in California, which plays a vital role in moving to a zero carbon future. 


Our Climate Advocacy Impact: 

Hammond Climate Solutions is a proud member of 15 nonprofit organizations, and active members of 10 coalitions.  Our team is pleased to serve in various leadership roles including:

  • Chair, California Solar+Storage Association, San Diego  
  • Vice Chair, San Diego Community Power Community Advisory Committee 
  • Steering Committee Member, San Diego Green New Deal Alliance
  • Executive Committee Member, Surfrider San Diego
  • Board Member, Climate Defenders Action Fund
  • Board President, GRID Alternatives San Diego 
  • Steering Committee Co-chair, San Diego Building Electrification Coalition
  • Justice, Diversity, Equity and Inclusion Resource Development Chair, San Diego Green New Deal Alliance

We helped organize three Climate Hub events, which reached folks from across the country, and attended multiple socially-distanced, outdoor press conferences (and even multiple car caravans) related to energy franchise agreements and workers rights.

We’re a member of 1% for the Planet, whose members pledge to donate one percent of their earnings to nonprofit organizations working to stop the climate crisis.  We’re delighted to announce that Hammond Climate Solutions’ contributions far surpassed the pledge requirement. 

Lastly, our CEO Tara Hammond completed the Climate Reality Project Leadership Training, and has been sharing the scientific knowledge she gained to educate others.  


So what does this year have in store for Hammond Climate Solutions? 

We are going to take the momentum we’ve gained and continue fighting for the greater good!  We will be growing our climate project management, policy and advocacy efforts to drive more change. 


With the help of our network and communities, we look forward to accomplishing our main policy objectives of:


  • Getting a strong rooftop solar agreement at the California Public Utilities Commission while fighting off anti-solar legislation, allowing solar to grow sustainably, helping support green jobs while reducing CO2 emissions.  
  • Pushing for reach codes that would require new buildings to be all electric, lowering costs of construction while eliminating new, unnecessary gas infrastructure, which poses significant health and climate risks.   
  • Advocating that the City of San Diego gets better, short-term gas and electric franchise agreements that support the climate, equity and a plan to accelerate the transition off of fossil fuels.  
  • Updating Climate Action Plans with progressive policies, such as zero carbon, to help address the climate crisis at a faster pace, while prioritizing communities of concern, who are first and foremost impacted by climate injustices.
  • Supporting legislation that would create regional climate authorities across California 
  • Voicing support for the San Diego County Zero Carbon Sustainability Plan 
  • Advocating for policies that prioritize communities of concern in climate efforts across the country


We are excited for the second year of the Solar Moonshot Program, and will continue managing the Business for Good and Climate Action Campaign e-bike ride off programs while staying connected with the Pedal Ahead program. 


As far as new initiatives, we are working with a coalition to help bring an e-bike ride off program to residents in multi-family affordable housing complexes. We’re helping a local foundation that’s supporting lower interest EV loans for people in communities of concern. We’re expanding our reach to assist solar companies in tracking policies and being more engaged in protecting the solar and storage industry. We’ve committed to helping a global leader in energy storage with a Corporate Social Responsibility project. 


We’ll continue to advocate for good climate and equity programs that counter the climate crisis, including initiatives through our local community choice energy program, San Diego Community Power (our CEO advocated for community choice energy in San Diego County for nearly a decade, and we are thrilled to finally see San Diego Community Power officially launch this month).  


Last but certainly not least is our pursuit of helping to establish pilot programs to show proof of concept, and help lay the foundation for big public initiatives.  We welcome your creative ideas for climate programs and incentives, and look forward to helping you implement them.  


Stay updated on our efforts by following us on social media. We can be found using @HammondClimateSolutions on Facebook, LinkedIn and Instagram, and @DynamicActions on Twitter. 

To learn more about Hammond Climate Solutions, please explore the rest of our site!

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Woman holding hands in a heart shape around the sun during a sunset

Sustainability Intention Setting for the New Year

New Year's resolutions likely will look different this year, if they haven’t been written off entirely as we grapple with the heavy effects of the continued pandemic. The past year has shown us how important it is to take time to decompress and make space for productivity being less of a priority during a global pandemic that has rippled effects in public health, physically, mentally and emotionally. While this is still the case now, entering a new year is a great time to set intentions and think about the year ahead. 

New Year's resolutions likely will look different this year, if they haven’t been written off entirely as we grapple with the heavy effects of the continued pandemic. The past year has shown us how important it is to take time to decompress and make space for productivity being less of a priority during a global pandemic that has rippled effects in public health, physically, mentally and emotionally. While this is still the case now, entering a new year is a great time to set intentions and think about the year ahead. 


We’re thinking about the ways we can be sustainable in 2021 that are also sustainable in the midst of the pandemic. Here are our favorites if you, too, need some inspiration to combat the climate crisis this year:


  • Transition to a low-waste lifestyle: in order to make wasteless habits sustainable for yourself, it’s suggested to take baby steps. Rather than phasing out all single-use items in your house, start with one area, like the kitchen. Replace paper towels with reusable ones like these, or see if you have any unused cotton clothing you can use as an even lower-waste and economic alternative. You can go to zero waste shops, like Earthwell Refill in San Diego, a black-owned zero waste refill store to refill household products instead of buying a new container when the product is done. The Buy Nothing Project has local Facebook groups where you can give away items you no longer need and also request items you need, helping reduce waste while getting to know your neighbors. 
  • Cut emissions by biking, walking or taking public transportation: while we’re not getting out much during quarantine, it still makes a difference to opt for biking, walking or taking public transportation instead of driving for local trips, if possible.
  • Spend time with soil: connecting with nature is an easy way to reduce stress, take a break from the sedentary lifestyle (that most of us experience) and see the nourishing, symbiotic relationship that’s possible between the earth and us humans. Stand on the grass to “ground” and rebalance your body, or plant seeds to grow your own low-cost, local, sustainable foods.
  • Embrace the activist within: each of us has the ability to be an activist in our own way. Find what you like most so it’s sustainable; it may look like speaking during public comment at a city council meeting, volunteering at a local climate organization, or signing onto letters and petitions.
  • Find sustainable eating options: When you’re tired of cooking, especially during the pandemic, restaurants  can use support. When you want to order food, opt for local, small businesses that try to integrate organic foods and sustainability into their operations. No one business is perfect, but many are trying to make a difference, like SOULMUCH, with their mission to reduce food waste by rescuing unused grains and turning them into cookies. You can look for Surfrider’s Ocean-Friendly Restaurant certification. 


We hope that you are able to enter 2021 with some renewed hope, inspiration and motivation despite the year we are leaving behind. And if not, self-care is likely the most important priority. After all, we cannot fight the climate crisis and strive for sustainability if we ourselves are not taken care of.


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