Net Energy Metering (NEM) 3.0
Background
The California Public Utilities Commission (CPUC), the entity responsible for regulating the investor-owned electric and gas utilities in California, launched a proceeding to re-evaluate the current net energy metering (NEM) program and decide upon a new NEM program. Simply put, NEM is the program that allows rooftop solar customers to be compensated for the excess electricity they send back to the power grid. NEM, paired with solar financing and ratepayer funded incentives, has allowed solar to become increasingly accessible to low-and-moderate income families across California. Defying overwhelming public opposition, state officials voted in late 2022 to make drastic changes to NEM. The decision by the California Public Utilities Commission will make it much more expensive to get rooftop solar. The decision mostly affects those who do not yet have solar, but can affect existing solar users under certain circumstances as well.
Our local coalition mobilized quickly to ensure that San Diego’s voice and priorities were on the record in this proceeding and successfully advocated for six cities in San Diego County; Solana Beach, Imperial Beach, Chula Vista, Encinitas, Carlsbad and San Diego, to issue resolutions standing up for solar and urging the CPUC to adopt a decision that allows solar to continue to grow.
In addition to the six cities in the region weighing in on the proceeding, the Mayor of San Diego, San Diego Community Power and over 60 local organizations submitted letters to the governor, urging him to step in and stop the utilities and the CPUC from destroying the solar market. By the time the final decision was approved, San Diego was listed as having the most public comments out of any other region in California.
NEM 3.0
Solar users under NEM3 will get 75% to 80% less from the utility for the extra solar energy they share with the grid. Compensation for that extra energy will go from an average of $.30 / kWh to around $.05 / kWh. NEM3 solar users will also be put on a rate plan with higher evening electricity rates. These changes will extend the payback period for a solar investment from an average of six years to more than ten years.
The CPUC’s new rules will not affect NEM 1 and NEM 2 solar users until your lock-in period expires, unless you add more panels. Existing solar users who increase their system size by 10% or 1kW, whichever is more, will be forced onto NEM 3. Existing solar users can add a battery at any time without affecting their lock in period.
Read the full decision here.
Virtual Net Energy Metering (VNEM)
Virtual net energy metering (VNEM) allows a property with multiple meters to share the benefit of one solar array. After the December 2023 decision to slash rooftop solar benefits for homeowners, the CPUC is now trying to do the same for renters, farms and schools.
The CPUC issued a proposed decision in August that would essentially give the utilities control over the power generated by multi metered properties and then force the owner to purchase back the electricity their rooftop solar generated at full price. In the case of a property with several buildings, the solar energy might first flow into the local grid for a moment before traveling back to other buildings. In these cases, the solar energy gets “in front of the meter” for an instant, and then flows right back to the property served. However, the CPUC's proposal says that because the solar electrons touch the grid for a brief moment, those electrons are no longer the property of the solar user. The CPUC has never seized control of solar in this way and after slashing benefits for homeowners, we cannot let them do the same for apartments and schools.
Hundreds of organizations and businesses representing renters, farmers, schools, and apartment owners have sent letters, made phone calls, and met with decision-makers. Many of them have pointed out that rooftop solar is an important way to reduce California’s high cost of living for renters and others, and that this proposal makes the problem worse. The CPUC was set to make a final decision in October, but due to growing pressure, the decision has been delayed until November.
Read the proposed decision here.
How you can help
Tell Governor Newsom and your state legislators to protect solar for renters, farmers, and schools!
1) Call Governor Newsom at (916) 445-2841.
A sample script is below.
“My name is ____. I live in _________. I am calling to demand that Governor Newsom does everything in his power to stop the CPUC’s proposal to block rooftop solar in multifamily housing, schools, and farms. The proposal must be changed to allow everyone to use their solar power without utility interference, with no exceptions whatsoever. Thank you.”
2) Please tell the CPUC not to block solar for renters, farms, and schools
Go to the CPUC website and click "Add Public Comment".
Complete the public comment form and hit submit. You can use the points above for your comment. Ideas for what to write are below:
- I am strongly against the CPUC's proposal to block rooftop solar for renters, schools and farms!
- Rooftop solar reduces harmful air pollution and public health impacts to renters, especially those living in urban areas. Multifamily buildings are often located in dense or urban areas where air pollution is typically concentrated at higher levels with disproportionate public health impacts to disadvantaged and vulnerable communities. Installing onsite solar in these areas reduces local air pollution and public health impacts to tenants.
- With the climate crisis worsening, California should be doing everything in its power to incentivize people to go solar, not take opportunities away.
- Rooftop solar gives multifamily renters greater access to local clean energy in alignment with state clean energy and equity goals while also reducing renters' utility bills, which are already the highest in the nation.
- This porposl must be changed to allow everyone to use their solar power without utility interference, no exceptions!
Community Voices
Table of Contents
Background
The California Public Utilities Commission (CPUC), the entity responsible for regulating the investor-owned electric and gas utilities in California, launched a proceeding to re-evaluate the current net energy metering (NEM) program and decide upon a new NEM program. Simply put, NEM is the program that allows rooftop solar customers to be compensated for the excess electricity they send back to the power grid. NEM, paired with solar financing and ratepayer funded incentives, has allowed solar to become increasingly accessible to low-and-moderate income families across California. Defying overwhelming public opposition, state officials voted in late 2022 to make drastic changes to NEM. The decision by the California Public Utilities Commission will make it much more expensive to get rooftop solar. The decision mostly affects those who do not yet have solar, but can affect existing solar users under certain circumstances as well.
Our local coalition mobilized quickly to ensure that San Diego’s voice and priorities were on the record in this proceeding and successfully advocated for six cities in San Diego County; Solana Beach, Imperial Beach, Chula Vista, Encinitas, Carlsbad and San Diego, to issue resolutions standing up for solar and urging the CPUC to adopt a decision that allows solar to continue to grow.
In addition to the six cities in the region weighing in on the proceeding, the Mayor of San Diego, San Diego Community Power and over 60 local organizations submitted letters to the governor, urging him to step in and stop the utilities and the CPUC from destroying the solar market. By the time the final decision was approved, San Diego was listed as having the most public comments out of any other region in California.
NEM 3.0
Solar users under NEM3 will get 75% to 80% less from the utility for the extra solar energy they share with the grid. Compensation for that extra energy will go from an average of $.30 / kWh to around $.05 / kWh. NEM3 solar users will also be put on a rate plan with higher evening electricity rates. These changes will extend the payback period for a solar investment from an average of six years to more than ten years.
The CPUC’s new rules will not affect NEM 1 and NEM 2 solar users until your lock-in period expires, unless you add more panels. Existing solar users who increase their system size by 10% or 1kW, whichever is more, will be forced onto NEM 3. Existing solar users can add a battery at any time without affecting their lock in period.
Read the full decision here.
Virtual Net Energy Metering (VNEM)
Virtual net energy metering (VNEM) allows a property with multiple meters to share the benefit of one solar array. After the December 2023 decision to slash rooftop solar benefits for homeowners, the CPUC is now trying to do the same for renters, farms and schools.
The CPUC issued a proposed decision in August that would essentially give the utilities control over the power generated by multi metered properties and then force the owner to purchase back the electricity their rooftop solar generated at full price. In the case of a property with several buildings, the solar energy might first flow into the local grid for a moment before traveling back to other buildings. In these cases, the solar energy gets “in front of the meter” for an instant, and then flows right back to the property served. However, the CPUC's proposal says that because the solar electrons touch the grid for a brief moment, those electrons are no longer the property of the solar user. The CPUC has never seized control of solar in this way and after slashing benefits for homeowners, we cannot let them do the same for apartments and schools.
Hundreds of organizations and businesses representing renters, farmers, schools, and apartment owners have sent letters, made phone calls, and met with decision-makers. Many of them have pointed out that rooftop solar is an important way to reduce California’s high cost of living for renters and others, and that this proposal makes the problem worse. The CPUC was set to make a final decision in October, but due to growing pressure, the decision has been delayed until November.
Read the proposed decision here.
How you can help
Tell Governor Newsom and your state legislators to protect solar for renters, farmers, and schools!
1) Call Governor Newsom at (916) 445-2841.
A sample script is below.
“My name is ____. I live in _________. I am calling to demand that Governor Newsom does everything in his power to stop the CPUC’s proposal to block rooftop solar in multifamily housing, schools, and farms. The proposal must be changed to allow everyone to use their solar power without utility interference, with no exceptions whatsoever. Thank you.”
2) Please tell the CPUC not to block solar for renters, farms, and schools
Go to the CPUC website and click "Add Public Comment".
Complete the public comment form and hit submit. You can use the points above for your comment. Ideas for what to write are below:
- I am strongly against the CPUC's proposal to block rooftop solar for renters, schools and farms!
- Rooftop solar reduces harmful air pollution and public health impacts to renters, especially those living in urban areas. Multifamily buildings are often located in dense or urban areas where air pollution is typically concentrated at higher levels with disproportionate public health impacts to disadvantaged and vulnerable communities. Installing onsite solar in these areas reduces local air pollution and public health impacts to tenants.
- With the climate crisis worsening, California should be doing everything in its power to incentivize people to go solar, not take opportunities away.
- Rooftop solar gives multifamily renters greater access to local clean energy in alignment with state clean energy and equity goals while also reducing renters' utility bills, which are already the highest in the nation.
- This porposl must be changed to allow everyone to use their solar power without utility interference, no exceptions!
Community Voices
