The newly revised CPUC PD establishes a “Net Billing” tariff that introduces an entirely new framework for valuing exported energy. The new methodology will reduce the value of exported energy by roughly 75% compared to NEM-2 levels, and completely decouple the value of imported and exported energy.
California regulators have voted to change the solar rates available to customers of PG&E, Southern California Edison, and San Diego Gas & Electric. Once the new rates take effect, they will bring the biggest change to the economics of solar in California in more than 20 years. Here’s a glance at what's to come and how you can lock in the most favorable solar rates now.
Based on initial analysis, this new NEM-3 tariff will substantially decrease the value of solar exported credits, which equals a 30-40% loss in potential NOI. Other states that have implemented a similar cliff in the export compensation rate have seen sharp declines in solar deployment.
Time is of the essence. We expect solar contractors will see a surge of customer activity as the sunset date draws near for California’s most favorable solar rates. If you intend to take advantage of today’s solar rates, start planning the project as soon as possible. Contractors may need about 45 days to design your solar system and prepare an application to interconnect your system with the electric grid.
Accuracy is important when you submit the application. The utilities allow for decreasing system size during the review process, but to increase the size you’ll have to submit a new application. Ivy is here to help you determine the ideal system size for your property so that you only have to submit one application and ensure the utilities accept it in a timely manner.
Ivy's participation in the NEM-3 proceedings has been instrumental in ensuring that multifamily building owners and tenants receive equitable treatment and a fair glide path to facilitate a manageable transition as the tariff is finalized. Ivy's advocacy will benefit the entire multifamily real estate market as it continues to adopt solar plus storage by ensuring a reasonable payback for the multifamily solar assets and smooth processes for interconnection. Ivy was the only stakeholder involved in the proceeding exclusively focused on multifamily, advocating for increased equity in the program through fair treatment of the multifamily customer class.
Ivy Energy can help you secure the highest value for your solar energy. Property owners serious about investing in solar must act fast to ensure the best ROI. Reach out to our team today to learn how to get the grandfathering process started.