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:
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.
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.
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.)
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:
- 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!
UPDATE - 3/31 - The Solar Power World Webinar has come and gone, but the good news is that you can watch it anytime by going to the SPW website, register and then watch. To get started, click on the “Watch Webinar!” button. The whole event is worth a listen, but if you wish to cut to my presentation, it starts around the 25 minute mark!
Run on Sun Founder & CEO, Jim Jenal, is frequently quoted on topics related to solar power and the nature of the solar industry. Two media events this month demonstrate that continuing influence. Check these out…
Run on Sun has long had a happy relationship with the folks at industry magazine, Solar Power World, having been named to their “Top Solar Contractors” list three years running, but this upcoming webinar is a first for us. Directed toward other solar installation companies, the one-hour presentation offers the perspective from Jim and two other industry leaders on steps to take to develop a first-class operation. From the online blurb:
Technology is constantly changing; are you using the right tools to ensure your business is operating as efficiently as possible? The desire for great customer service stays the same; are your offerings and sales techniques making it easy for the customer to go solar?
Join us in a special 1-hour presentation in which several presenters explain:
- How innovative software can streamline your business
- Why PACE financing can help enable you to service more customers
- What best practices are most effective when working with clients (this is Jim’s topic!)
Readers of this blog know that Jim brings a distinct point of view to his writing, and this presentation will certainly be no exception!
SUNMetrix is a cool portal that is designed to allow homeowners to gather information about how to go solar, and check out highly rated solar companies in their area. Headed up by Simone Garneau, and winner of the SunShot Catalyst Business Innovation Contest, we are fans of the concept, and of Simone. When she contacted Jim about contributing to her upcoming blog post, he was happy to oblige.
The result is Are Solar Panels Worth It? and here’s an excerpt:
In the past decade, the expansion of the residential solar energy market has been nothing short of astonishing. Though it’s still early days, all key market metrics point to continued growth for the coming years…
For most homeowners though, the decision to go solar boils down to a single question: is it worth it?
…Homeowners, frustrated by their ever increasing utility bills, are looking for an alternative that will save them money in the long run. They are also looking for ways to help the environment by producing their own clean energy. Jim Jenal, CEO of the solar company Run on Sun in Pasadena, California knows this firsthand:“For most homeowners it starts with a desire to save money; however, even for the most cost conscious, the understanding that they are doing something good, sweetens the deal.”
With dramatic price drops in solar equipment, solar energy is more affordable than ever for homeowners considering the switch.
Of course, as we have written in the past, the answer to the question of is solar worth it, is… it depends! (Check out Laurel’s great post on Assessing My Home’s Solar Potential: Step-by-Step to see more of our thoughts on this key point.)
Simone’s post provides lots of good information, along with quotes from other industry experts - check it out by clicking here.
Canada’s new Prime Minister, Justin Trudeau, ventured south of the border last week to visit the White House, marking the first official Canadian Prime Minister visit in 19 years! What are Trudeau and Obama palling around about? You guessed it… collaboration on a North American transition to renewable energy! The leaders announced a joint strategy to move coordinated climate action even beyond their respective commitments at COP21 in Paris last December.
Trudeau has been much more willing to implement climate change policies than his predecessor, Stephen Harper, who opposed cutting greenhouse gases to the point that he pulled Canada out of the Kyoto Protocol. In the joint announcement they emphasized the special relationship between the two countries and the importance of collaboration on energy development, environmental protection, as well as Arctic leadership.
In the joint press conference they remarked that Paris was a turning point in the global effort to take action on climate and anchor economic growth in a clean energy transformation. One important outcome in Paris was the launch of Mission Innovation. Mission Innovation is a global initiative including 20 countries commiting to double their governments’ clean energy research and development investments over the next five years. Indeed Obama’s 2017 budget is seeking $7.7 billion in discretionary funding to boost clean energy research. (Hopefully those R&D dreams won’t be dashed by Congress.) Last month, the U.S., Canada, and Mexico also signed a memorandum of understanding seeking to expand our countries’ cooperation to include climate change and energy collaboration activities. Building on these and other multilateral agreements, last Thursday the leaders reaffirmed their commitment to working together to:
“strengthen North American energy security, phase out fossil fuel subsidies, accelerate clean energy development to address climate change and to foster sustainable energy development and economic growth.”
Specifics regarding the clean energy highlights of the joint pledge include:
Few further details were included but the leaders’ focus on the need to accelerate clean energy innovation and a transition to renewables is a giant step in the right direction!
Check out the full press conference here:
On August 3, 2015, President Obama and the Environmental Protection Agency (EPA) announced the Clean Power Plan (CPP) – an exciting, historic and truly critical step in tackling climate change. Advocates say its policies will create jobs, make our grid more reliable, and our economies more resilient while helping protect all of us against climate change’s worst impacts. The CPP is the heart of Obama’s effort to uphold commitments agreed upon at the Paris COP21 climate conference last December.
Power plants are the largest polluters in the US. They account for one third of all greenhouse gas emissions! We wrote about the controversial carbon standards for NEW power plants put forth by the EPA in December 2014. Obama’s Clean Power Plan takes it a giant step further by forcing all EXISTING coal-fired power plants to cut carbon emissions by 32% from 2005 levels by 2030.
Despite the seemingly fair and flexible terms of the Clean Power Plan, vested interests (including coal and mining groups and a coalition of Republican states) fiercely opposed, stating the regulations are an overreach of the EPA’s power. On February 9th the U.S. Supreme Court voted 5-4 to stay implementation of the CPP until the litigation challenging the Clean Power Plan is addressed. Justice Scalia’s passing doesn’t change anything since a 4-4 vote also stays the implementation until the Federal District Appeals Court makes a decision likely in late 2016.
Experts are confident that the CPP’s contents are on solid legal ground and courts will ultimately uphold it. However, a final decision is unlikely before June 2017 or even into 2018 (depending on when the Supreme Court makes their final ruling after going through the DC Court). These delays only make global progress more and more difficult as all eyes are on the US to set an example by honoring our Paris climate commitments.
While 27 states filed the petition to delay the CPP implementation, eighteen state governors - both Democratic and Republican - have announced an accord to move forward on clean energy solutions regardless. The governors declared that “we recognize that now is the time to embrace a bold vision of the nation’s energy future,” and that their states “are once again prepared to lead.”
“As the world gets hotter and closer to irreversible climate change, these justices appear tone-deaf as they fiddle with procedural niceties. This arbitrary roadblock does incalculable damage and undermines America’s climate leadership. But make no mistake, this won’t stop California continuing to do its part under the Clean Power Plan.” – California Gov. Jerry Brown
Its leaders like these governors, and many large private businesses who have come out in favor of upholding the Clean Power plan, who seem to understand the gravity of climate change and the many benefits that moving to a clean energy future brings. We hope the alliance of leaders in politics and the private sector continues to grow and soon will outnumber those that back the interests of dirty energy!
Here at Run on Sun we are big fans of Electric Vehicles (EVs) - we started writing about them years ago as a natural marriage, if you will, with solar power. We have long had a page on our website devoted to the synergy between solar and EVs, and we drive a Volt as our main company car.
But one thing we hear from skeptics is that EVs will never replace gasoline cars - they are too expensive or they are too limited in range (that latter point being why we drive a Volt and not a Leaf). But an interesting analysis from Bloomberg Business suggests that this will change, and far faster than most might think! Check out their very thought provoking video (h/t climatecrocks.com):
Quite the range of opinions on EV penetration - from 1% of new car sales in 2040 (according to Exxon) to 50% in this video. Frankly we are betting with Bloomberg. People who drive EVs have no desire to revert to an internal combustion engine. When you combine that EV with solar power to charge it, you are really getting to a game changer.
So what if, as the video suggests, instead of having to regulate away fossil fuels, we just stopped buying them? That future can’t get here fast enough!
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