The newly revised CPUC PD makes no changes to VNEM export rates for 9 years. Multifamily owners that have projects ready to go should still try to lock in NEM 2.0 for 20 years to ensure the best ROI. Multifamily Dive Article
For the time being, VNEM and NEMA tariffs are fully retained with the following caveats. The commission has determined that customers who apply for VNEM before April 15th will have 20 years of guaranteed NEM 2.0 compensation and any project after that will have 9 years of NEM 2.0 compensation before transitioning to a future tariff that will be determined from a multifamily specific workshop in 2023.
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.