Category: Net Metering

07/18/17

  10:17:00 am, by Jim Jenal - Founder & CEO   , 459 words  
Categories: All About Solar Power, SCE, Residential Solar, Net Metering

NEM 2.0 is Here - Now What?

Net Energy Metering 2.0, or NEM 2.0 for short, is now the law of the land, at least in SCE territory.  So what does that really mean for potential solar clients?  Here’s the scoop…

NEM 2.0 brings three changes to how new solar clients will be treated by SCE (customers of PWP, LADWP, or any other muni utility are unaffected).  Let’s take a quick run through each one:

  • A one-time application fee - new solar clients will be charged $75 as part of the interconnection application process.  (In the past there was no charge.)  Not a big deal, just another annoyance from SCE.
  • Switch to Time of Use rates - this is a much bigger deal.  Most residential customers are on a two-tiered rate structure with a “penalty” tier for users who exceed 4x baseline allocation.  Under that rate structure the maximum cost for energy is 31.224¢/kWh.
    Going forward, new solar customers will be charged based on when they use energy, not how much energy they use, with a Summer, on-peak energy cost of 44.665¢/kWh!  Ouch!  Peak hours are weekdays (holidays excepted) from 2-8 p.m.
  • Non-Bypassable Charges - Under the old rules, energy that was imported from the grid could be entirely offset by energy exported onto the grid.  Now, for every kilowatt hour imported, regardless of exports, the customer will pay a small (for now) non-bypassable charge of 2.25¢/kWh.  Again, the utilities were pressing for this to be a much higher number, but for now this is a relatively minor surcharge.

So what does this all mean?  The answer is, it varies.  For some clients, particularly those with west-facing roofs, they may actually do better under TOU rates than they would have staying on the old, tiered rate plan.  But to answer that question requires a proper analysis, and this is where potential solar clients need to do their homework and look closely at their solar bids. 

EnergyToolbase screenshot

Here’s what to look for.  Your potential installer should be requesting that you provide them with SCE’s “interval data” for your home.  This hour-by-hour data for the entire year allows for a proper analysis of your usage, and makes it possible to compare that historical usage with the modeled output of your proposed PV system.  If they aren’t asking for interval data, they are taking shortcuts with their savings analysis - likely in ways that inflate your potential savings on paper, only to result in disappointment down the road.

Run on Sun uses UtilityAPI to access SCE data securely, and we employ EnergyToolbase (pictured above) to do our analysis of your potential savings - two of the most highly respected and sophisticated tools in the solar industry.  We have the tools and the expertise to give you the most accurate projection of your future savings from solar - so let’s get started!

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05/04/17

  05:11:00 pm, by Jim Jenal - Founder & CEO   , 497 words  
Categories: All About Solar Power, Solar Economics, SCE, Residential Solar, Ranting, Net Metering

NEM 2.0 is Coming - But Not Before July 1

As a solar installer working in SCE’s territory, we get messages from them on a regular basis, including those regarding the upcoming transition to NEM 2.0.  But the email we received today (actually two copies of it!) was a bit, how shall we say, high-strung?  Here’s our take.

NEM 2.0 will occur when the first of two events occurs: SCE interconnects enough residential and commercial solar projects to reach 5.0% of its total aggregate power demand, or July 1.  We have written before that SCE will never get to the 5% beforehand, so the deadline is 23:59:59 on June 30. 

So we were a tad perplexed to see this email today - here’s a sample:

417 MWs Remaining in NEM 1.0

As SCE gets closer to its Net Energy Metering (NEM) 1.0 Cap, we want to remind everyone of the importance of submitting complete and accurate interconnection request(s) (IRs). You should be receiving similar notifications within the online application system (i.e., PowerClerk).

Why is the 417 MWs remaining important?

For those applicants and customers with an existing IR moving through the interconnection process, we are sharing this information so that you may plan accordingly as SCE approaches its NEM 1.0 Cap. Once the cap is reached, the existing NEM tariff will close to new customers and the NEM 2.0 (NEM Successor) tariff will become available. With approximately 417 MWs remaining in the NEM 1.0 cap, this is a friendly reminder to please submit all documentation necessary for receiving service under NEM 1.0 and do so as soon as possible.

(Emphasis in the original.)

Wow - you would think that this might happen any day now, based on that language.  Except that it won’t - not even close.

Here are the underlying numbers:  SCE’s total cap is 2,240 MWs - a target it has been building toward since 2007!  As of today, in SCE’s territory, 1,823 MWs has been installed.  That means it has taken roughly  3,595 days to install that capacity, which works out to roughly half a Megawatt per day.  With 417 MWs left under the cap, and just under 58 days before July 1, we would have to be installing at the rate of 7.2 MWs/day!  Uh, no.  Just Not Going To Happen!

(If you would like to see exactly how much time we have before we hit the actual deadline, check out the Doomsday Clock on our Residential Solar page.)

However, the reality of that deadline does have consequences.  For potential commercial clients, sorry, but you are out of luck - there is just not enough time to get a new commercial project designed, permitted, constructed, and approved before July 1.

Potential residential clients are in a slightly better position, but only slightly as your window of opportunity is rapidly closing.  For example, we are already booked solid for the entire month of May with just SCE projects (we have pushed everyone else back to try and help as many as possible in SCE territory meet the deadline), and we can only guarantee an approved interconnection for NEM 1.0 by mid-June.  If you’ve been thinking about solar in SCE-land, please don’t wait, call or email us today!

02/20/17

  12:30:00 pm, by Jim Jenal - Founder & CEO   , 814 words  
Categories: Solar Economics, Residential Solar, Net Metering

Update: Net Metering 2.0 Coming Soon!

We have written at some length about how Net Energy Metering (NEM) works, and about the changes to NEM that are coming, aka Net Energy Metering 2.0.  While both PG&E and SDG&E have already switched to the 2.0 version, SCE customers are still able to go solar under the existing, more favorable, rules, but not for long!  (NB: PWP & LADWP customers are unaffected by this change, the following is only relevant to SCE customers.)

Here is our update as we dive headlong into the brave new world of NEM 2.0.

Timing of the change

Under the rules adopted by the California Public Utilities Commission (CPUC), SCE must continue to allow new customers to operate under the current NEM 1.0 rules, until either of the following events occur:

  1. SCE reaches its NEM 1.0 cap of 5% of net aggregate demand, or
  2. We reach the deadline date of July 1, 2017.

As of this writing, SCE is still a full percentage point below its cap, with 480 MW worth of solar to install before the cap is reached.  Quite simply, that will not happen between now and the end of June, so the deadline to get in on the current rules is 11:59 p.m. on June 30, 2017.

But here is the rub—to qualify, not only must the project have been completed, but a final, signed-off inspection card must also be submitted to SCE prior to the deadline.  This is going to make June a difficult month as installers struggle to get projects completed and approved in time.  Since approvals are at the whim of individual inspectors, many of whom are idiosyncratic (to be kind) in their understanding of what the code requires, it is difficult to guarantee that a project will be approved on first inspection. 
Prudent consumers will want to make sure that first inspection occurs on or before June 15th.

Key differences

Although NEM 2.0 is not the crushing blow to solar that some feared it might become, it still has a number of aspects that make it less appealing to the solar system owner.  Here are the major differences:

  1. New Interconnection Fee—Presently, it doesn’t cost anything to connect to SCE’s grid.  NEM 2.0 changes that, and imposes a one-time charge of $75.
  2. Imposition of Nonbypassable Charges (NBCs)—under existing rules, if the credits generated by exporting power to the grid equal or exceed the charges incurred for energy imported, the energy charges are zeroed out (or even a credit is carried forward, if exports exceeded imports).  Under NEM 2.0, for every kWh imported from the grid, whether it can be netted out or not, there are NBCs charged for that energy.  The good news is that this is just about 2.2¢/kWh, and it does not apply to solar energy consumed locally, but it does still decrease the savings from solar.
  3. Mandatory Time-of-Use (TOU) Rates—Presently, residential customers who are on an SCE tiered rate before adding solar remain on that rate after interconnection.  NEM 2.0 changes that as well, and forces new solar customers to shift to a TOU rate.  SCE’s TOU rate charges the most for energy consumed from 2:00 to 8:00 p.m., meaning that energy exported to the grid  before 2:00 (as many solar systems do) is less valuable to the consumer than the energy they have to import from the grid in the evening after the solar system is no longer producing.

(Unintended?) Consequences of NEM 2.0

The coming of NEM 2.0 has some obvious consequences—there will be a crush this spring to get projects approved before the new rules take effect (so don’t wait!), and the overall savings from going solar will be reduced, although not dramatically so.

Enphase AC BatteryBut there are some unintended consequences as well.  For one, these new rules will be a boon for intelligent storage systems, both to help reduce NBCs and to shift that otherwise exported energy to peak TOU periods.  Storage systems with the “smarts” to do all that will suddenly make economic sense.  (More on that in the near future, but for now just three little words: Enphase AC Battery!)

Another unintended consequence is the significantly increased difficulty in properly modeling the savings to be derived from adding solar.  While some installation companies use sophisticated software like EnergyToolbase (as Run on Sun does), or build out sufficiently detailed spreadsheet models (as Run on Sun also does), for many, that level of complexity is simply overwhelming.  So what will they do?  More than likely, just create a number that is little more than a WAG (and no, not a SWAG).

The result is that potential solar clients need to push on companies providing them with solar quotes to justify their savings numbers.  If they used something like EnergyToolbase they should be happy to point that out (although there is still the risk that they used it incorrectly…).  If they used their own proprietary model, they should be able to explain how it works.  But be wary of numbers, especially outliers that claim greater savings without sufficient documentation.

07/23/16

  12:57:00 pm, by Laurel Hamilton   , 1594 words  
Categories: Residential Solar, Ranting, Energy Storage, Net Metering, Intersolar 2016

Intersolar 2016 - Bests & Worsts of the Hottest Solar Event of the Year

Its been a week since we returned from the most epic solar event of the year - Intersolar North America in San Francisco. Now that we are caught up on the backlog of emails and calls we can take a moment to reflect on key highlights from the event. 

Top 2 New Innovative Products to Watch

  1. BeamReach SolarBeamreachWhere do I start with this truly innovative new company?? Beamreach Solar unveiled a product called Sprint that includes the attachments, racking, and panel all in one. The panel frame and “racking” is entirely made of a composite plastic (material tested in automotive and other outdoor conditions for 20+ years). They demonstrated the installation of 6 panels in about 5 minutes! Designed for flat roof commercial projects, the tilt up back end pops out to click into a base which also pops out and sticks with a roofing adhesive to the roof. The front of the next panel then clicks into the base of the first panel and so on. The whole system is obviously much lighter (including a handle in the middle of the panel) and way faster to install than conventional ballasted systems. Best of all, no grounding required since there’s no metal to ground!
    While this is an awesome new product we have to wonder about a few things… 1) Do we have to powerwash the roof first for the adhesive to work? 2) What if a footing is incorrectly placed?! According to the great sales rep we spoke with… while the panels can be removed and replaced easily for maintenance, the footing is solid once it adheres to the roof so you’d have to essentially re-roof if you want to get rid of them. And 3) most roofs are nowhere near as flat as the surface Beamreach demonstrated on. How does the system deal with irregularities on the roof given the sticky feet are basically a flat square? We look forward to following this company as they work out the kinks in their exciting product. Keep your eyes peeled for a blog post where we dig in a little deeper on this.

  2. Photon - While we didn’t get to actually talk to the masterminds behind this new start-up the idea is spot on. Photon is a subscription based app whereby your smartphone (with the addition of a cheap lens from Amazon) can take a shade analysis on a roof. I don’t think many installers would shed a single tear giving up their SunEye or Pathfinders. We may just have to try this innovative new app out. 

Top 3 Developments from Existing Partners

  1. Energy Toolbase - These guys are the kings of data. We have been working with them since last year’s Intersolar to help us show our clients how solar will offset their electric bills with the greatest confidence possible. They are constantly adding more of the dozens of complex rate models around the country to their system. And now they’ve built in net metering 2.0 in anticipation of this huge change to California rates coming next year as well as storage into their models. Staying ahead of all the rate changes nation-wide is a huge undertaking but these guys are on top of it! 


  2. Life’s Good (LG) - While LG didn’t have a booth this year, Run on Sun’s CEO Jim Jenal enjoyed a breakfast where LG showed off their mammoth 375 watt, 72 cell panel. This is no surprise as LG continues to churn out higher wattage panels every year with their successful R&D department. Currently 320 watt, 60 cell panels (standard for residential solar) are available to us but it sounds like we can expect even higher efficiency coming within the year.  

  3. Enphase Energy - Storage beta installations are taking place in Australia where they recently mounted 4 units in just 45 minutes! Can’t wait to get our hands on them as many of our clients have expressed interest in storage. Looks like we may be able to get beta Enphase batteries in the coming year! Interested clients (especially those in SCE territory) please let us know if you want to be one of the first!

Top 2 Companies Trying too HardSmartFlower POP

  1. Smartflower POP - There was a lot of hubbub around this giant solar flower thingy. While I like that it has integrated storage and the dual axis tracker is great for increasing output in a big way…we couldn’t help but feel like this was way over engineered. There are actually several other solar flowers out there and I think solar-integrated art is a fantastic way to showcase to the public and get the social benefit when a solar system may be hidden on a rooftop. But take a look at this Smartflower. There’s some serious mechanics going on to make the thing open in the morning, track the sun, then close at night. Why it needs to open and close is beyond me and just seems overly complicated, heavy, and probably costly. (To be fair, we didn’t get the full spiel from the sales guys.)

  2. Ten K Solar - Sometimes its a fine line between being innovative and being overly complicated. When you decide to roll three “innovative” products into one maybe that’s a sign that you’ve crossed the line. I’m not sure if I’m more excited about the concept of wiring in series and parallel - making each “half” cell operate independently, or more confused as to why they orient the system north/south and eliminated MC4’s. To be sure there are some exciting things about this product and the people at Ten K definitely have thought outside the box. Will be keeping an eye on them for sure.

Top 4 Most Amazing Moments

Battle of the Bands

Kendra Hubbard, Jim Jenal, Jeff Spies, and me at BotB

  1. BayWa r.e. Customer Appreciation - As many of you know, Baywa r.e. is our fabulous distributor for many reasons. Namely they share a similar ethos and dedication to quality solar and an accountable honest industry that we do. But beyond sharing similar missions they also treat us really well!
    This year BayWa hosted a customer appreciation “chill out” area throughout Intersolar. Anytime the crowds and meetings were too much we could go sit outside in the shade, get a chair massage, and enjoy a cold beverage or lunch! Yeah, you heard me…Chair Massage. Best distribution partners EVER!

  2. Solar Summerfest - It wouldn’t be Intersolar without an epic party or two! This year’s Solar Summerfest did not disappoint. From the variety of food spreads (loved the veg options!) and bars (wine, margaritas AND whiskey?!) to the awesome entertainment provided by professional break dancers… this was such a fun time to relax and get to know our solar friends and partners. As the night went on the real highlights were seeing BayWa’s Scott Snyder rock the karaoke stage and CalSEIA’s Bernadette del Chiaro cut a serious rug on the dance floor. And according to Jim’s pedometer Jim and I danced an impressive 7216 steps with our friends at Everest Solar

  3. DeloreanBattle of the Bands - And then there was the Battle of the Bands where solar companies show off their employees’ musical talents (and the Solar Tribe hangs out, like the four of us in the picture above). Solar folks really know how to party!  Special thanks to Jeff Spies for hooking us up with invite only tix!

  4. Delorean! - Did I forget to mention the Back to the Future Delorean was on display…and I got to sit in it? That was a pretty cool moment for an 80’s kid like myself. 


Top 2 Most Annoying Moments

  1. When that guy I met at SolarFred’s Solar Tweetup (which was a great event by the way) asked me how Run on Sun was different than SunRun and couldn’t wrap his head around how installation companies can be so different. Even when given the most perfect metaphor… “We are like a microbrewery making delicious quality beer for the benefit of the people in the most sustainable thought-driven way, and SunRun is like Coors. NOT THE SAME.” He still didn’t get it, sigh. 

  2. TalesunWhen I casually walked the exhibition floor looking for current and future partners working for the betterment of the solar industry and the world at large…and was confronted with a booth filled with girls dressed in what looked like playboy bunny costumes. Jim already described his take on Talesun’s display choices and their obvious lack of understanding for why they received such a negative reaction in another blog. But as a woman working in this industry with a rare position including answering phones, designing layouts, pulling permits, AND torquing bolts on the roof… I felt personally offended by Talesun’s decision to use misogynistic objectification to try to sell their product. Due to my many roles I feel I represent, or have an understanding of, a lot of different people in this industry.
    And I’m not alone, according to the 2015 Solar Foundation National Census women represented 24% of solar jobs, surely even more today! When a quarter of your clientèle are women why in the world would you use booth babes to market your products? Solar is supposed to be different than other male dominated construction industries.
    This is supposed to be an industry that makes the world a better place and values everyone equally for their contributions. That booth did not speak to me positively on any level in any of my roles as installer, administrator, customer service representative, saleslady, health and safety officer, or general solar ninja. On the bright side I was pleased to hear that the majority of Intersolar participants made it very widely known how unacceptable Talesun’s display was. This only solidifies my feeling that this is a great industry for women, despite a few bad apples who may never “get it".  

04/08/16

  11:55:00 am, by Jim Jenal - Founder & CEO   , 776 words  
Categories: All About Solar Power, PWP, LADWP, BWP, GWP, Net Metering

Munis Shutting Down Net Metering! - UPDATE 2X

UPDATE - 5/28/16 - Despite our best efforts, AB 2339 was HELD in the Appropriations Committee, effectively killing the bill this session.  Thank you to everyone who took the time to call and voice their support for the bill.  Special thanks to Frank Andorka who created a podcast in support of the bill, all the way from Cleveland!  We lost this battle, but the fight continues.

 


UPDATE - 5/26/16 - We passed the Assembly Utilities Committee on a 10-2 vote, but right now we are stuck in the Assembly Appropriations Committee, chaired by San Diego Democrat Lorena Gonzalez. The decision of whether to allow AB 2339 to  advance to the Assembly Floor rests in the hands of two people: Chair Gonzalez and Speaker Rendon.  Please take a moment to give them a call and urge them to support the bill.  Here are their numbers:

  • Lorena Gonzalez, Chair Assembly Appropriations Committee: 916-319-2080
  • Speaker Anthony Rendon: 916-319-2063

Thanks!


 

Back in February we wrote about the new Net Metering 2.0 rules that the California Public Utilities Commission (CPUC) approved over the objections of the Investor-Owned Utilities (IOUs), SCE, PG&E, and SDG&E.

PWP - Net Metering?

We noted at the time that the CPUC rulemaking did not directly affect the Municipal Utilities (munis, like Pasadena Water and Power). Boy was that right as muni after muni is looking to shut down Net Metering altogether! Here’s our take, and more importantly, an action item that you can take to preserve Net Metering with the munis.

How We Got Here

The munis  are generally free, within the limits of state law, to set their own policies as confirmed by the local city council.  So here in Pasadena, PWP sets its policy but has to have that policy ratified by the city council’s vote.  When it comes to Net Metering, state law requires that the munis, like the IOUs, offer Net Metering agreements until the amount of solar deployed exceeds “5% of the electric utility’s aggregate customer peak demand.” (CA Public Utilities Code § 2827)  Now if that quote seems like less than a model of clarity, you are quite right.  Before the CPUC, the IOUs argued that it meant that you look at a utility’s highest peak demand as of a certain point in time, and that would be the cap.  Such an interpretation, however, reads the words “aggregate customer” out of the statute.  The CPUC agreed, and the proper interpretation requires the utility to sum the aggregate demand from each customer and that becomes the cap.

The results are dramatic - the proper interpretation effectively doubles the total amount of solar allowed under the cap.  That decision by the CPUC back in 2012 redefined Net Metering, but only for the IOUs.  At the time there was little concern regarding the munis since none was close to reaching their cap. 

Fast forward to today and five munis have already reached their caps, as calculated under the old, pre-CPUC ruling, methodology.  That leaves them free to replace Net Metering with whatever they choose, and at least one, Turlock, has adopted new rules that have resulted in an 85% decline in the solar market there!  (In contrast, LADWP has already agreed to the new methodology thanks to leadership from Mayor Garcetti.)

Support AB 2339!

Fortunately there is a fix in the works.  AB 2339 (Irwin - D-44) will require that the munis calculate their caps in effectively the same way as the IOUs.  The bill is presently in the Assembly Committee on Utilities and Commerce, chaired by Mike Gatto (D-43) - a former student and colleague of mine, and a champion of clean energy.

We need the strongest bill possible coming out of the committee, and you can help make that happen.  How?  Our friends at CALSEIA have compiled a target list of key assembly members who need to here from their constituents on this bill.  From the CALSEIA newsflash:

Target List:

  • Jim Patterson (R-Fresno/Clovis) 916-319-2023
  • Susan Eggman (D-Stockton/Mountain House/Thornton/Tracy) 916-319-2013
  • Mike Gatto (D-Burbank/Glendale/La Canada/La Crescenta) 916-319-2043
  • Bill Quirk (D-Hayward/Ashland/Castro Valley/Cherryland/Fairview/ Fremont/ Pleasanton/San Lorenzo/Sunol/Union City) 916- 319-2020
  • Miguel Santiago (D-Huntington Park/Vernon) 916- 319-2053
  • Eduardo Garcia (D-Imperial/Blythe/Brawley/Calexico/Cathedral City/Coachella/Desert H.Springs/El Centro/Indio) 916- 319-2056
  • Christina Garcia (D-LA/Bell Gardens/Bellflower/Cerritos/Commerce/ Downey/Montebello/Pico Rivera) 916- 319-2058
  • David Hadley (R-Torrance/Gardena/Lomita/Manhattan Beach/Palos Verdes Estates/Redondo Beach/West Carson) 916- 319-2066
  • Phil Ting (D-San Francisco) (916) 319-2019
  • Rocky Chavez (R-Oceanside/Calsbad/Encinitas/Vista) (916) 319-2076

If you live in one of those districts, or if you run a business in one, or have customers there, please contact that member.

More generally, there is a website where anyone can go to express their support for expanding the benefits of Net Metering to muni customers throughout the State.  Just click on the button to make this happen:

Sadly, the list of entities opposing this bill includes Pasadena Water and Power - looks like we need some political leadership here in our own backyard to get PWP on board.

We will update this post as the bill progresses through the legislature - watch this space!

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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