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San Diego Becomes the Largest City to Advocate for Continued Access to Rooftop Solar

Advocacy
Screenshot of the San Diego City Council's virtual meeting on the NEM 3.0 proceeding

On November 15, the City of San Diego became the largest city in the state to weigh in on the net energy metering proceeding, which is currently underway at the California Public Utilities Commission (CPUC).  A proposed net energy metering (NEM) decision is expected to be made by next month on the future rooftop solar agreement in California, known as net energy metering 3.0 (NEM 3.0).  


The net metering resolution, which urges the CPUC to create a structure that will keep rooftop solar growing sustainably while expanding solar access to low-and-moderate income communities, was approved unanimously by the San Diego City Council today after receiving unanimous support during the San Diego Environment Committee last month.  Local organizations SanDiego350, Climate Action Campaign, Protect Our Communities Foundation, CED Greentech and the San Diego Democrats for Environmental Action joined the Hammond Climate Solutions team in making verbal comments in support of the resolution today, emphasizing the importance of this decision in the middle of a climate emergency.  Last month over 60 people made comments in favor of the resolution. 


“Rooftop solar is a lynchpin in the city's legally-binding Climate Action Plan,” said Matthew Vasilakis, Co-Director of Policy with Climate Action Campaign.  “We need to incentivize rooftop solar and storage with a strong NEM program and paired investments in communities of concern.  That's how we build a climate resilient 100 percent clean energy system.” 


Councilmember Raul Campillo, who was one of the first elected officials in the state to issue a letter to Governor Newsom advocating for a solar-friendly net metering 3.0 agreement, called out the importance of this resolution during his remarks today. 


“This {resolution} ensures that the City of San Diego has communicated its priorities to the state on this matter, and we cannot afford any changes to this {net metering} policy that slows down the process or limits accessibility to clean energy.  This resolution speaks loudly and clearly that the City of San Diego wants to protect the environment, create good paying, high-skilled jobs, improve our energy resiliency and save ratepayers billions of dollars."


Beyond the obvious carbon emissions reduction, local grid reliability and cost savings that come from the increased adoption of rooftop solar and energy storage, the San Diego region has thousands of local jobs at stake with this decision.  Jake Marshall, Operations Manager with CED Greentech San Diego, a distribution company out of Mira Mesa, called in to support the resolution.  Marshall’s comment highlighted the potential massive job loss that could result if the industry is forced to slow down. 


“I personally employ 75 people in Mira Mesa, we have run the numbers and with the {investor-owned utilities’ anti-solar} proposals, our numbers will go down to 22 people.” 


The resolution states that the City of San Diego “supports a CPUC NEM 3.0 decision, which emphasizes the sustainable growth of customer sited solar electric and energy storage facilities in order to meet California’s clean energy targets, particularly residential customers in disadvantaged communities” while also advocating to “reject elements of any proposal which will stifle sustainable growth of customer sited renewable generating facilities including high monthly fixed charges and avoided cost models which insufficiently account for the societal value of customer sited renewable generation.”


The resolution includes strong equity provisions, and Councilmember Monica Montgomery Steppe highlighted the importance of making solar jobs more accessible to communities of concern. 


Council President Jennifer Campbell ended the discussion by calling out the intentions of the investor-owned utility companies.  


“It's clear the investor-owned utilities are working hard to hamper solar energy growth, which is very short-sighted of them, as they could utilize this extra energy obtained to provide energy for other people in geographic areas that do not have as much sunshine as we have.  The cost shifting that {the investor-owned utilities} are proposing will hurt our climate action goals, will hurt our green job growth and the affordability of those who wish to push solar on their roofs.  Unfortunately it seems that their immediate bottom line is more important to them than a cleaner, green San Diego in which all income levels can participate in our abundant sunshine.  Let the {C}PUC know that San Diego stands on the side of rooftop solar, especially in communities of concern, and all the benefits of it, from good paying local jobs to healthier neighborhoods and increased clean energy production as solar energy brings.”


Once again, the only comment that was not emphatically in support of protecting rooftop solar was from one San Diego Gas & Electric employee who urged the council to meet with the Natural Resources Defense Council, an organization who is known to side with the utilities on this issue (learn more in this blog post, How an Environmental Group Aligned with Monopoly Utilities to Squash Rooftop Solar). 


The City of San Diego weighed in just in time before the anticipated proposed decision by the CPUC in December, while other cities and organizations in San Diego county have already gone on the record in support of protecting access to rooftop solar and energy storage.  In September, the City of Solana Beach became the first city in the state to issue a resolution standing up for a strong net energy metering with a unanimous vote.  San Diego Community Power, the community choice energy program for the cities of San Diego, Imperial Beach, Encinitas, La Mesa and Chula Vista, also submitted a letter jointly with San Jose Clean Energy, which highlighted the fact that the net metering proposal by the investor-owned utilities would result in fees that community choice energy customers would not be able to avoid.  Earlier last week, the City of Chula Vista voted unanimously to send a letter and approve a resolution calling for the CPUC to create a policy in which solar is able to continue to grow, and this week, Imperial Beach Mayor Serge Dedina released a letter in support of a strong net metering 3.0 agreement. 


As the proposed decision by the California Public Utilities Commission rapidly approaches and the final decision expected by February of next year, local activists are hoping this resolution will lead to San Diego Mayor Todd Gloria weighing in as well to leverage his existing relationship with Governor Gavin Newsom. 


For latest information and up-to-date calls to action, visit our net metering toolkit at www.HelpCleanEnergy.org  

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Villa Lakeshore Apartments in Lakeside, which BQuest provided a SOMAH bride loan for, allowing the property to install solar, which saves tenants $1,600 a year on utility bills

California bill could restructure traditional incentive programs

New bill could restructure traditional incentive programs in California

It is no secret that traditionally, clean energy infrastructure has primarily been accessible to wealthy homeowners in California. More than a million homes and businesses have rooftop solar, but the state’s environmental justice communities, which are in the most polluted areas, have been left out. In order to reach the state’s climate and clean energy goals, it is necessary to provide clean energy access to everyone and a big part of how we get there is programs. 

The Solar on Multifamily Affordable Housing (SOMAH) Program was created by California Assembly Bill (AB) 693 introduced by then Assemblymember Susan Eggman in 2016, which included the largest investment of its kind in the nation - $1 billion over the next decade from five of the state's gas and electric  investor-owned utility companies greenhouse gas cap-and-trade auction proceeds to subsidize solar panels on multifamily affordable housing across the state. For tenants, this means reduced utility bills, better housing security and job training opportunities. For housing complex owners, the solar reduces common area electricity costs, reducing overhead expenses. The program had a very successful launch, becoming fully subscribed within the first 24 hours of opening the program with more than 240 applications representing 74MW of solar capacity. However, after the successful launch, the program has experienced a significant decrease in applications in subsequent years, only receiving a total of 20 applications in 2022. 

A required third-party evaluation of the program identified a number of barriers to program participation. A major barrier cited from property owners was gap financing. SOMAH Program projects can be lengthy, and the current incentive structure requires the property owner to float the rebate amount, which can be thousands of dollars to hundreds of thousands of dollars, sometimes for a year. The program recognized this issue and rolled at progress payments, which paid a portion of the incentive for certain project milestones, but this simply is not enough for some property owners. Recognizing the need for gap financing in order for these projects to participate in the program, Hammond Climate Solutions Foundation and BQuest Foundation began working together to provide no interest bridge loans for SOMAH projects, providing much needed funds for projects that would have otherwise not moved forward. After funding a handful of projects, BQuest realized they could scale this opportunity a lot more quickly and reach many more property owners by creating a loan guarantee instead of financing these projects on a one by one basis. A loan guarantee would allow the property owner to access the rebate on the front end, backed by a loan guarantee from BQuest, without putting ratepayer money at risk and allowing BQuest to scale their impact. 

In February 2023, Senator Eggman introduced Senate Bill (SB) 355, which expanded SOMAH Program eligibility to include tribal housing, housing owned by public agencies and increased the income threshold among other things. At this point, Hammond Climate Solutions Foundation and BQuest had already been involved in numerous meetings with the SOMAH Program administrators, the California Public Utilities Commission (CPUC) energy division staff, the Governor’s Office and were actively involved in the SOMAH proceeding at the CPUC and while support for this idea was given by all parties, implementing something like this had proven to be slightly more difficult. Since SB 355 addressed the lack of applications in the SOMAH program and expanded eligibility, we met with Senator Eggman’s staff and proposed an amendment to the bill to include language for a loan guarantee and not only was the language added with no opposition, it was signed by Governor Newsom on October 7! 

This is a huge win for California and an opportunity to prove that incentive programs structured in a way that provides the rebate on the front end can work and will eliminate barriers to participation. You can read the full bill text here.     

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Photo of the largest rooftop community solar project in the U.S, located in Carroll County, Maryland

California could lead the nation in Community Solar, if the utilities stop fighting it

California leads the nation in rooftop solar installations but has fallen short in creating a viable community solar market. Now, that can change.

California leads the nation in rooftop solar installations but has fallen short in creating a viable community solar market. Last year, Assembly Bill 2316 (AB 2316) unlocked the potential for California to lead the nation in community solar over the coming years by finally creating legislation that will tell the utilities to create a program that will credit customer’s accounts for renewable electricity produced elsewhere and set a compensation for the bill credit. Now, the utilities are attempting to derail a new proposed program called the Net Value Billing Tariff (NVBT).  

The NVBT would finally allow California renters, nearly 17 million people, and low-income households to take advantage of bill savings while using clean energy. There are a couple of things that make the NVBT different from failed community solar programs in California. The first is that it would require the installation of batteries with community solar projects, to alleviate the strain on the grid during peak hours (currently 4-9 p.m.), once demand is higher and solar energy being exported to the grid is dropping off as the sun sets. The second is that AB 2316 requires that low-and-moderate income households make up a majority of subscribers, ensuring that this program will benefit those who are paying a disproportionate amount of income towards skyrocketing electricity rates. Finally, this program has no caps on capacity, meaning the doors are truly open for developers that want to build these projects. 

One of the biggest advantages of community solar is that the solar power systems can be placed on rooftops and in parking lots, and the systems don’t require large plots of land like utility scale solar does. Community solar can also support local clean jobs and stimulate the regional economy. With the state’s target to procure 85 gigawatts of clean energy by 2035, there is already a large amount of projects in the desert trying to connect to the grid, however community solar projects can be a lot closer to the customers they serve, meaning they are able to connect to the lower voltage grid, eliminating the need for more costly and fire-causing transmission and distribution lines.    

It is no surprise that the only arguments against a program that could potentially replace dangerous peaker plants comes from the state’s three investor-owned utilities. The main argument coming from the utilities is that community solar should be treated like large-scale generators that have a different set of rules and guidelines than other distributed energy resources like rooftop solar. 

The California Public Utilities Commission proceedings tend to move pretty slowly, so there isn’t a definitive date for when we can expect the NVBT to be voted on by the commissioners. California has now passed the September 26 deadline for states to apply to $7 billion in federal funding as part of the Solar For All grants and having a community solar program in place would have made California’s application a lot more competitive.

While the utilities have successfully blocked attempts to make solar more accessible, including the decision to slash the state’s net energy metering program last year, hopefully the state can get it right on this one.

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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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