The newly revised Proposed Decision establishes a successor tariff that introduces an entirely new framework for valuing exported energy. The new methodology may reduce the value of exported energy compared to NEM 2.0 levels.
Submit your complete interconnection application as soon as possible to ensure your solar projects secure NEM 2.0 rates before the successor tariff takes effect.
1. NEM 2.0 for 9 years and No Prevailing Wage - Projects grandfathered between November 16th, 2023 - December 31st, 2023.
2. NEM 2.0 for 9 years with Prevailing Wage Applied - Projects grandfathered between January 1st, 2024 - February 15, 2024.
3. NEM 3.0 for 20 years with Prevailing Wage Applied - Projects submitted after final sunset deadline (February 15, 2024).
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 Energy has been advocating for regulators to adopt a robust solar tariff that serves multifamily properties. California’s 6 million+ renting households have been underserved by a solar policy designed principally for single-family homes. Yet renters receive tangible benefits every time solar is installed. Ivy has proven that a significant amount of solar generation at multifamily buildings is consumed on site, minimizing impacts on the grid. When paired with energy storage, solar exports can be smoothed and optimized for grid stability. 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 project. 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.