One of the California’s Public Utilities Commission’s (CPUC) most watched rulemakings is the net energy metering (NEM)3.0 decision, since it will decide the future of solar power in America, as California often sets the precedent in terms of environmental policies. Net energy metering, simply put, is the policy that has made solar increasingly accessible to low-and-moderate income families, schools and other public buildings. You can visit our previous blog to learn more about NEM. While the CPUC analyzes the 17 NEM proposals that were recently submitted to determine which proposal would allow solar to grow sustainably while making sure there are no inequities as a result of the decision, California Assemblymember Lorena Gonzalez has introduced Assembly Bill 1139 (AB 1139).

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AB 1139 proposes a new incentive structure that pays solar customers wholesale rates for their excess generation, has high fixed fees and breaks contracts that were signed under the previous solarrules, NEM 1 (the original solar agreement that was in phased out through out the state in 2016 and 2017) and NEM 2, the current solar agreement. The calculations from the bill in its current state are alarming - the most aggressive attack on solar to date - and provide clear data showing not only how this bill would kill the solar industry, but hurt California’s 1,200,000 solar customers while making solar inaccessible for everyone, including renters, people in communities of concern and multi-family tenants. The bill slashes economic savings from solar for low-income families by 80% and payback periods are going from 11 years to over 45 years - 20 years after the system warranty ends. The bill has subsidies set aside for helping low income families receive solar, however the proposed high fixed fees paired with ending retail credit for solar customers (meaning ratepayers get paid pennies for the clean energy they put on the grid which the utilities make millions of dollars off of),could easily result in families, businesses and multifamily tenants to be paying more to have solar than they did before getting solar! Fully-subsidized solar power systems don't pencil out under this new bill, meaning the millions of dollars of ratepayer money for low-income solar will sit idle.

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The bill is sponsored by the International Brotherhood of Electrical Workers (IBEW) and the Coalition of California Utility Employees, both who usually take positions on behalf of their utility employers. If the utilities successfully kill rooftop solar, that means there will be more utility-scale solar plants in the desert, which the utilities own and profit off of, and if those new transmission lines cause fires as they have in the past, ratepayers will also absorb those costs.

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Aside from the effects this bill would have on the industry, taking clean energy solutions away from Californians would also further exacerbate the climate crisis and continue the environmental racism that goes hand in hand with the continued use of dirty energy. This bill would also make it nearly impossible for California to reach 100% clean energy since the state has said that in order to reach these targets, rooftop solar needs totriple.

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Last week, nearly 60 environmental, solar,climate justice, equity and other advocacy groups wrote to Gonzalez to urge her to make amendments as the bill would effectively kill the rooftop solar industry. IBEW contractors Sullivan Solar Power and Baker Electric Home Energy called in to give public testimony opposing this bill in addition to the Center for Sustainable Energy and GRID Alternatives, program administrators for the state's $1 billion Solar on Multifamily Affordable Housing rebate program.Unfortunately, these concerns went seemingly unheard even after 75+ individuals and organizations called in to express opposition and the bill passed through the Utilities and Energy (U&E) Committee.

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The U&E committee’s analysis of the bill provided no real analysis of how this bill will impact jobs, low income and CARE customers, or the multifamily sector so Hammond Climate Solutions,provided a letter with our analysis and other resources with information the committee had stated they were unaware of. In summary, our letter refutes the cost shift arguments being pushed by the utilities, provides reliable studies showinghow solar can save ratepayers billions of dollars while not going solar willcost ratepayers, outlines issues with the studies paid for by the utilities,and shows that this bill will kill rooftop solar.

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The bill is now headed to the Appropriations Committee where it will be voted on again. While public comment won’t be accepted,written testimony to oppose this bill can be submitted to the committee via email at approps.committee@assembly.ca.gov.  A draft comment, with talking points can be found in our toolkit.

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. 

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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. 

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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. 

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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. 

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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.

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.  

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‍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!