Learn about proposed changes to Net Energy Metering:
NEM Successor Tariff
On February 3rd, the judge presiding over the Net Energy Metering proceeding issued the following statement:
“On January 11, 2022, the Commission reassigned Rulemaking 20-08-020 to President Alice Reynolds. The assigned Commissioner has requested additional time to analyze the record and consider revisions to the proposed decision based on party comments. Furthermore, the assigned Commissioner wants to ensure all five Commissioners participate in oral arguments. Accordingly, the oral argument hearing will be rescheduled at a later date. After additional analysis is conducted, I will issue a subsequent ruling providing information on the proceeding schedule and details regarding the oral argument hearing.”
In August 2020, the California Public Utilities Commission (CPUC) initiated a proceeding to develop a successor NEM tariff (a.k.a. “NEM 3.0”) pursuant to the requirements of Assembly Bill 327 passed in 2013.
On December 13th 2021, the CPUC issued a Proposed Decision explaining what the new tariff provisions would be. The Commission is expected to vote on this Proposed Decision on January 27th. If this Proposed Decision passes as written, the current NEM 2.0 tariff will sunset in late May 2022 (an estimated date of May 27th).
While the sunset could change if the Proposed Decision is revised prior to the CPUC’s vote, the current guidance for customers interested in installing rooftop solar is to submit their interconnection applications as soon as possible if they wish to enroll in the current tariff. If the interconnection application is submitted prior to the sunset date, the customer can stay on the NEM 2.0 tariff for 15 years from their interconnection date.
For more information on the successor tariff, please read the customer explanation that the CPUC developed here.
To subscribe for updates and to submit comments on the successor tariff to the CPUC, please click here.
Watch Canary Media’s Debate on how to fix rooftop solar policy in California here.
Background - AB1139
In February 2021, the Legislature introduced Assembly Bill 1139, which sought to expedite the current CPUC proceeding. Furthermore, if the accelerated timeline for the CPUC to establish a new NEM tariff was not met, the bill required specific provisions for the replacement tariff including additional interconnection fees, monthly fixed charges, NEM credits based on wholesale instead of retail rates, and a series of other provisions not favored by supporters of the current NEM 2.0 framework.
RCEA’s Board voted to oppose the legislation at its May 2021 Board meeting, deciding that the bill would harm current NEM customers and disincentivize new enrollment in the NEM program.
As of June 2021, this bill was not voted out of committee and is no longer active.
Net Energy Metering for Business and Government Customers
RCEA is dedicated to supporting customers like you to generate your own renewable energy. As a NEM customer with RCEA you buy energy at lower rates and sell energy back to the grid at higher rates.
New solar customers will be automatically enrolled into the program. When you complete the solar interconnection agreement with PG&E, you will be enrolled with RCEA.
How Does the Program Work?
If you generate more electricity than you use, each month RCEA will credit you at your retail generation rate plus an additional $0.01/kWh bonus. Those surplus credits will be rolled over to the next month for you to use later in the year or cash out in May.
If you use more electricity than you produce you will be charged for the difference at slightly lower rates than PG&E. See www.pge.com/cca for rate details.
Here is a copy of our Rate Information for NEM Customers (PDF). As a grid-connected customer with solar or other renewable energy systems you can be on any rate schedule you would have been on otherwise.
End of the Year Payout
In May, RCEA will automatically send out a check to all NEM customers with a credit of $100 or more in their credit balance with a cap of $5,000. If your credit exceeds $5,000 the excess will be rolled over to the following bill cycle.
If the credit amount is below $100, those credits will be rolled over to the following billing cycle for you to use later.
RCEA’s generation charges are billed monthly. This means that there will not be a large bill at the end of the year like with PG&E . Your delivery charges are still billed through PG&E, and will continue to be billed on a yearly cycle.
“Year-at-a-Glance” RCEA / PG&E bill comparison” for customers that consume more energy than they produce.
Opt up to 100% renewable energy with REpower Plus!
For a $0.01/kWh premium, upgrading to 100% renewable energy ensures that you are always using 100% renewable energy even if the sun isn’t shining. If you are a net generator you will earn an extra $0.01/kWh for the energy you produce.
The following NEM Sample Bill provides an explanation of the RCEA and PG&E charges for NEM customers.