The discussion about California's grid, rooftop solar energy, and net metering goes on. Following up on the comments under this article and then this article as well as years of debate, research reports, lobbying, solar
as well as years of debate, research reports, lobbying, solar industry pushback, and a net metering update that seems to be in complete limbo, below is a comment from” summarizing some key changes to the electricity rate system and subsidies in California that could solve a series of problems.
These rates are meant to recover the full cost of operating the utility, which includes not only the cost of generating or purchasing power/energy, but the fixed costs of operating the overall grid and delivery system. This has the effect of making electricity very expensive, which promotes conservation of electricity, but also inhibits electrification. It increases the costs of operating an EV, operating a heat pump instead of a gas furnace, induction stoves, etc.
What would this do to rooftop solar? Well, since most of the compensation for rooftop solar under NEM 3.0 comes from avoiding the current high per kWh electricity charges, it would dramatically cut total compensation. The grid connection fee would also shift back the costs of grid maintenance that these customers are mostly able to avoid under NEM 2.0.
It will also force the “pitch” for rooftop solar to conform to the true economics of avoiding grid-delivered electricity, rather than the inflated economics of NEM payments and fixed cost avoidance. Those economics will still be “good enough” for plenty of future customers, especially those in places that are harder to serve and prone to resiliency problems.
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