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Net Metering 2.0: What You Need to Know
May 9, 2016
For homeowners in the Greater Los Angeles, Santa Barbara, Bakersfield and Long Beach areas who are considering solar technology, there are a number of major changes coming with a new set of regulations approved by the California Public Utilities Commission. It's called Net Metering 2.0, and it affects all future residential solar customers in California. Unfortunately, it's viewed by many to be less than advantageous to solar customers, which is why it's more important now than ever before to install a new solar system before the changes go into effect.
Major Changes with Net Metering 2.0
While Net Metering 2.0 is the industry's attempt to adapt to the growing number of solar customers in California, some of the changes are not exactly ideal for future solar adopters. This being said, here are a few of the major changes that you need to be aware of:
Customers with onsite generation systems of less than 1.0 MW will be required to pay a fee for interconnection, which will likely range between $75-$150, depending on the electrical utility and account type.
- Net Metering 1.0 customers connecting systems less than 1.0 MW will not be required to pay study fees and distribution upgrade costs.
Net Metering 2.0 accounts are required to pay non-bypassable charges for all consumed energy, which cannot be offset by energy exported to the grid. These accounts can also receive $0.02 for every kWh (Kilowatt Hour) they offset using their solar system.
In contrast, Net Metering 1.0 customers are not subject to these charges and are able to collect 100% credit on their electrical bills - leading to a better return on investment.
Components & Warranties
When applying, Net Metering 2.0 customers will now be required to prove:
- Major solar PV system components must be approved by the CEC.
- A 10-year warranty on all equipment and the installation of that equipment.
Residential Time of Use Fates & Fixed Charges
Time of use rates charge different prices depending upon time of day that better match real-time costs of generating and transmitting energy across the grid. For residential customers, Net Metering 2.0 introduces the following:
- Residential customers will be required to use time of use rates (when available).
- Fixed charges may be introduced in the future.
Customers of Net Metering 1.0 can expect to have their accounts grandfathered in on the successor tariff for 20 years from the date of first operation.
SolReliable Can Help!
Given the concerns associated with what Net Metering 2.0 may bring to the solar landscape, we recommend that interested homeowners take the opportunity to get a new solar system installed now so you can beat out these policy changes. SolReliable will help to size a solar system for your home and get you the best deals possible, answering any questions you may have about Net Metering or solar energy along the way. We promise to expedite the solar install paperwork and process as fast as possible so your system can be grandfathered in to the old fee structure.