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A Brief History of California’s Solar Agreement, Net Energy Metering

Policy
Solar contractor installing a panel on a roof

As we see the devastating effects of climate change across the globe, most recently in Texas where communities were suffering in freezing temperatures without water or power for days, it has become clearer than ever that we need to transform our power supply to renewable energy in order to increase resiliency. This past summer, California experienced the opposite, where sky high temperatures and demand for air conditioning resulted in rolling blackouts for California residents. In a time where it is crucial to increase the deployment of renewable energy, the United States’ largest solar market, California, is under attack. What happens in California will likely be the example for other states, and this is a crucial battle that we’re on the front lines of right now. 

The success of rooftop solar relies heavily on net energy metering (NEM), a solar producer’s agreement with the electric utility company. At a high level, NEM is a billing structure that allows solar customers to sell their excess electricity back to the grid. The amount is then applied to their utility bills, leaving the solar customer to pay the net amount of energy used. California’s first solar agreement, known as NEM 1.0, was extremely successful and accelerated the transition to solar for California residents, businesses, schools and municipalities. Since then, investor-owned utilities (IOUs) across the state have continuously attacked rooftop solar, proposing egregious policies that would make solar economically infeasible. In 2016 the second solar agreement rolled out initially in the San Diego Gas & Electric utility territory, and made its debut for Pacific Gas & Electric (PG&E) and Southern California Edison in 2017. This successor tariff is known as NEM 2.0, and after a tough battle against the utility companies, the California Public Utilities Commission decided that the new solar rate would be similar to the first, maintaining the major benefit of allowing customers to sell electricity back to the grid at retail rates. However, NEM 2.0 required all solar customers to transition to a time-of-use (TOU) rate and non-bypassable rates. Under a TOU rate, a customer is charged different rates based on the time of the day with designated on peak and off peak times. The highest rates are during peak demand, which is late afternoon and early evening, while off peak times occur early in the morning and late at night and have the lowest cost. The new rate structure under NEM 2.0 has serious implications for solar customers, because it changes the value of the energy sold to the grid based on the time. This means that in order to get the highest NEM credits, customers need to sell the bulk of their energy during peak hours. Although NEM 2.0 is substantially less beneficial to solar customers compared to its predecessor, it still retained the major benefits of being able to sell energy back to the grid. Solar companies even began to adapt to TOU rates by designing solar systems to face west in order to capture the maximum energy possible during the late afternoon. Now, California’s IOUs are attempting to make modifications to net metering, ushering in NEM 3.0. 

As details of NEM 3.0 continue to unfold at the California Public Utilities Commission, it is clear that the IOUs are calling for drastic cuts to NEM. The California Solar and Storage Association (CALSSA) estimates that the economic value of going solar will be reduced by 50-75 percent with the IOU’s proposed changes. Decisions made during these proceedings will not only affect new solar customers, but existing customers as well as the IOUs have proposed removing grandfathering periods for current customers, essentially forcing all solar customers onto NEM 3.0. 

With the understanding that NEM 3.0 could kill rooftop solar and that California is a leader and looked to as a model for shaping renewable energy programs, it is not an understatement to say that we are fighting to save solar. We are calling on organizations to sign this net metering letter and individuals to sign this petition, by early April, which will be sent to Governor Gavin Newsom and the California Public Utilities Commision. 

Our founder, Tara Hammond, began a small local coalition to save rooftop solar in California last year and the coalition has quickly grown to a statewide grassroots effort, with more than 70 organizations being involved. To learn more or to join the battle, please reach out to our Climate Justice Policy Advisor, Karinna Gonzalez at karinna@hammondclimatesolutions.com.

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Climate Propositions and Measures in San Diego County

In San Diego, a variety of propositions and initiatives have been introduced to confront climate challenges

As climate change and its consequences become increasingly apparent, local governments are urged to take proactive and preventive measures to address its impacts. In San Diego, a variety of propositions and initiatives have been introduced to confront climate challenges, ranging from renewable energy efforts to policies that may entail some focus on climate change-related issues. At Hammond Climate Solutions Foundation (HCSF), we continuously analyze these options to better understand what is best for our community and how we can expedite positive change toward a just and livable future. We believe that it’s essential for citizens to be informed about the options available on this year's 2024 ballot.

Proposition 4

In recent years, environmental groups and renewable energy advocates have pushed for increased investment in climate action, particularly after Gov. Gavin Newsom and the Legislature approved a $54.3 billion plan known as the "California Climate Commitment" in 2022. However, due to budget constraints, this commitment was scaled back to $44.6 billion for the current fiscal year.

Proposition 4 is a significant measure on California's ballot, proposing a $10 billion bond aimed at addressing the state's most pressing environmental challenges. If passed, the bond would provide funding for projects related to drought, flood prevention, wildfire mitigation, and sea-level rise, among other climate-related concerns. The initiative is part of California’s broader commitment to lead in climate action. However, the bond raises concerns about long-term financial implications, particularly given the state's existing deficit.

Key Goals

The largest portion of the bond, $3.8 billion, would be allocated to projects related to drought, flooding, and water supply. These funds aim to improve water availability and quality, reduce the risk of flooding, and upgrade water facilities. Specific initiatives include enhancing water recycling and transforming wastewater into potable water for homes and drinking.

In addition, $1.5 billion would go toward "Forest Health and Wildfire Prevention," focusing on strategies like tree thinning and the removal of overgrown vegetation to reduce wildfire risk, a particularly urgent issue for the state.

Another significant portion, $1.2 billion, would be used to address sea-level rise and coastal restoration efforts. The goal is to mitigate the risks posed by rising ocean levels and to protect coastal ecosystems and fish populations.

Other notable allocations include:
$1.2 billion for land conservation and habitat restoration.
$850 million for renewable energy infrastructure, including offshore wind energy.
$700 million for expanding and repairing local and state parks.
$450 million for reducing the impacts of extreme heat on communities.
$300 million to help farms respond to the effects of climate change and adopt sustainable agricultural practices.

Fiscal Impacts

While the proposed bond addresses a wide range of pressing environmental concerns, the financial implications for California’s taxpayers are significant. According to the Legislative Analyst’s Office (LAO), the state would incur an additional $400 million annually over the next 40 years to repay the bond, potentially increasing the state’s existing deficit. This comes at a time when California is already facing a projected $46.8 billion in its budget.

This could lead to difficult decisions in future budget allocations, as funds will need to be diverted to service the debt from the bond. While the environmental projects are undeniably important, voters will need to weigh these benefits against the financial strain that Proposition 4 could impose on the state’s economy​.

Balancing Climate Action and Fiscal Responsibility

Proposition 4 represents a critical investment in California’s climate future, but it also highlights the tension between taking immediate climate action and managing long-term fiscal health. The bond would finance necessary projects to combat drought, wildfires, sea-level rise, and other pressing environmental issues, potentially making California more resilient to climate change. However, the reliance on debt financing raises questions about whether the state can sustain these investments without exacerbating its fiscal problems.

Voters may also consider alternative approaches to achieving these climate goals without incurring additional debt. Options like community-based climate initiatives, rooftop solar projects, and more efficient water management could provide cost-effective and sustainable solutions. Proposition 4’s goals are well-aligned with California’s commitment to addressing climate change, but its reliance on debt may not be the most financially prudent path forward. Voters will need to carefully balance the need for immediate climate action with the state’s long-term fiscal responsibility​


Measure E

Measure E is a proposal by the City of San Diego to implement a 1% general transactions and use tax (sales tax) increase. If passed, this would raise the current sales tax in San Diego from 7.75% to 8.75%, with the potential to generate an estimated $400 million annually for the city’s General Fund. Unlike a special tax, which would be earmarked for specific purposes, Measure E is a general tax, meaning the revenue could be used for a wide variety of city services and initiatives.

The additional revenue could be critical for addressing major city needs, but it comes at a cost. The sales tax is regressive, meaning it disproportionately affects lower-income households who spend a larger percentage of their income on taxable goods. For San Diego residents already dealing with inflation and high costs of living, this could add to their financial burden, making the decision about Measure E a challenging one for voters.

Key Goals

The primary goal of Measure E is to generate additional revenue to fund the city’s broad array of public services, including:
Public Safety: Enhancing fire, police, and emergency services.
Infrastructure Repair: Allocating funds for the maintenance and improvement of streets, sidewalks, storm drains, and other city infrastructure.
City Services: Supporting parks, libraries, recreational facilities, and other community resources.

While there are no legally binding restrictions on how the funds will be spent, the city has indicated that the proceeds would be used to maintain or improve upon the existing level of services, rather than replacing current spending.

Fiscal Impacts

If Measure E is approved, the additional $400 million annually would boost the city’s financial resources, providing more flexibility to address both immediate needs and long-term projects. The new revenue would be subject to the same auditing and oversight as other General Fund revenues, with annual reports to the City Council ensuring accountability. This could allow for more sustained investments in infrastructure, public safety, and community programs.

However, the measure has sparked concerns about the potential burden on consumers, particularly low-income residents. Sales taxes are regressive, meaning they disproportionately impact lower-income households, who spend a larger percentage of their income on taxable goods. This could create financial strain for some residents, particularly in the context of economic challenges like inflation.

Balancing Climate Action and Fiscal Responsibility

Although Measure E is not explicitly tied to climate-related projects, the revenue it generates could be leveraged to support the city’s broader environmental and sustainability goals. For example, funds could be allocated to infrastructure improvements that enhance climate resilience, such as upgrading stormwater systems to handle extreme weather or investing in sustainable public spaces.

At the same time, the financial impact on residents must be considered. Sales taxes tend to disproportionately affect lower-income residents, and in a time of inflation and economic uncertainty, some may question whether the tax is the best approach. Still, the measure offers a way for the city to address infrastructure deficits and other challenges without relying on borrowing or incurring long-term debt, a contrast to Proposition 4’s bond-financed approach.
In addition, while the increased revenue could support long-term sustainability and resilience efforts, the regressive nature of the tax could exacerbate financial inequities. As with any tax proposal, voters will need to weigh the potential benefits to the potential city services and infrastructure against the economic impact on households, particularly those already struggling with the high cost of living.


Measure G

Measure G is a proposed half-cent sales tax increase on the November 5, 2024 ballot aimed at transforming transportation across San Diego County. The measure is expected to raise approximately $900 million annually, funding critical infrastructure improvements including fire protection, road maintenance, public transit, and environmental preservation. At Hammond Climate Solutions Foundation (HCSF), we have endorsed Measure G due to its alignment with sustainability goals and its potential to significantly enhance climate resilience.

Key Goals and Fund Allocation

Measure G prioritizes a wide range of transportation and environmental improvements, with funds allocated as follows:
50% toward major public transit infrastructure projects, promoting sustainable transportation and reducing traffic congestion.
27% for capital projects to improve road and highway traffic flow and community safety.
7% for local street maintenance and repair, addressing San Diego’s crumbling infrastructure.
12% for transit operations and maintenance within the Metropolitan Transit System and North County Transit District.
2% for the repair, rehabilitation, and replacement of infrastructure within the rail transit system.
2% or less allocated for general administrative services.

These funds would be placed into a “lockbox,” ensuring that they are used exclusively for the designated projects. If any funds are misused, the oversight committee can refer cases for criminal prosecution.

Fiscal Impacts

If approved, Measure G would raise the countywide sales tax to 8.75%. While this increase may pose a financial burden on some residents, particularly lower-income households, the long-term benefits could include reduced traffic, enhanced safety, and improved infrastructure. By securing additional state and federal matching funds, Measure G would maximize local investments in transportation and environmental sustainability, ensuring a more sustainable and expansive public transportation system.

Balancing Climate Action and Fiscal Responsibility

Measure G includes stringent fiscal safeguards such as independent citizen oversight, public transparency, and annual audits. All funds remain under local control, and for every dollar generated, two dollars in additional funding will be secured from state and federal sources, ensuring billions for local improvements.

At Hammond Climate Solutions Foundation, we endorse Measure G because it offers significant opportunities to advance climate action. The measure’s emphasis on expanding public transit infrastructure, protecting natural habitats, and improving transportation safety aligns with our mission to promote sustainability. It also addresses the increasing wildfire risk by improving evacuation routes in vulnerable areas.

While the proposed tax increase poses a financial consideration, the long-term benefits of improved roads, enhanced transportation safety, and stronger environmental protections make Measure G a vital investment in San Diego County’s future. Whether the measure will fully prioritize climate action remains to be seen, but its potential for positive, lasting environmental impact is undeniable.


With the 2024 ballot offering important decisions on a variety of issues, including those related to climate and infrastructure, it is crucial for voters to engage with the options available. These measures will have long-term implications for how San Diego will address environmental concerns, public safety, and community needs.

At Hammond Climate Solutions Foundation, we encourage all citizens to stay informed and take part in the voting process. Your participation helps shape the direction of our community and ensures that we continue working toward a sustainable future.

For more information on local ballot measures and how to vote, visit the San Diego County Elections website.

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Rasool, 13, and his brother Waad, six, explore the cracked ground where there once was water in a village in the al-Ankour area of western Iraq [Alannah Travers/Al Jazeera]

Reforesting Iraq: Iraqi Government Plan Set Out to Plant Millions of Trees

Over the last four decades, Iraq has suffered a plethora of environmental consequences, made worse by the constant wars that have left the country with problems ranging from decaying infrastructure to contaminated water systems.

Over the last four decades, Iraq has suffered a plethora of environmental consequences, made worse by the constant wars that have left the country with problems ranging from decaying infrastructure to contaminated water systems. In recent years, however, the government has embarked on a nationwide initiative to combat the effects of climate change by planting millions of trees across much of the country’s arid landscape. These initiatives, supported by both local and international organizations such as the United Nations Country Team (UNCT), aim to mitigate the country’s environmental challenges, such as desertification, extreme heat, and air pollution. However, while the planting of trees is a crucial first step, the challenges of maintaining and sustaining these trees require continuous efforts from the responsible bodies such as government officials and community-led organizations, especially in a country that is facing several developmental challenges.

Baghdad’s goal to plant over 10 million trees as well as similar efforts in the autonomous region of Iraqi Kurdistan reflects a nationwide push to reduce greenhouse gas emissions and to restore Iraq’s diverse ecosystems. Such ecosystems have taken a huge hit, such as the loss of over 50% of forests in the Iraqi Kurdistan region (the Arab Weekly). These losses in forests and tree-covered areas are partly the result of the water crisis, instability that has led to an increase forest fires, and increased economic dependence on the cutting down of trees. In response, the planting of trees is meant to absorb carbon dioxide, making them a vital step in the country’s road to environmental sustainability. 

In addition to the effects on the environment, there has been a significant toll on human lives. According to a United Nations report, nearly 7 million Iraqis are facing a severe lack of safe, clean water​ (The World). The country’s two primary rivers, the Tigris and Euphrates, have experienced historically low levels due to upstream damming and prolonged droughts, both made worse by climate change.

The mass tree planting initiative is not just about greening Iraq’s arid landscape; it’s about creating sustainable ecosystems that can support both human and wildlife populations. Trees are known to absorb carbon dioxide, a key greenhouse gas, thus playing a vital role in global efforts to combat climate change. In Iraq, the reforestation plan is expected to sequester significant amounts of carbon, improve air quality, and restore degraded land.

However, planting trees is only half the battle. The success of Iraq’s reforestation efforts hinges on the country’s ability to ensure that these trees survive and thrive. Watering these newly planted trees is a critical aspect that is often overlooked in large-scale reforestation projects. In Iraq, where water resources are already under severe stress, this presents a significant challenge. 

One of the strategies being explored is the use of treated wastewater for irrigation. By recycling wastewater, Iraq could reduce the strain on its freshwater resources while providing the necessary hydration for its growing forests. Another approach involves the implementation of advanced irrigation techniques, such as drip irrigation, which minimizes water waste and ensures that water reaches the tree roots directly. In contrast, the Chairman of the Parliamentary Water and Agriculture Committee in an interview on Iraq state TV referred to the condition of agriculture in Iraq as similar to that during the time of “Hammurabi”, noting its reliance on archaic methods of irrigation.

In addition to water challenges, the quality and type of trees planted are crucial for long-term success. Not all trees are suited to Iraq's harsh environment, where extreme heat and dust storms are common. Medium-sized trees like the black wattle (Acacia decurrens), honey locust (Gleditsia triacanthos), and black locust (Robinia pseudoacacia) are more likely to tolerate these conditions. These species can survive in dry climates and provide valuable shade, which helps reduce the surface temperatures in urban areas. In contrast, palm and date trees, while the latter is iconic in Iraq, often require large amounts of water and offer limited shade, making them less ideal for extensive reforestation efforts in a country with a mostly arid climate like Iraq. 

Despite these efforts, experts warn that reforestation alone may not be enough to counter the severe impacts of climate change in Iraq. The country’s broader environmental policies must address issues such as water management, agricultural practices, and urban planning to create resilient and flourishing ecosystems. Without a comprehensive approach, the benefits of planting millions of trees could be undermined by continued environmental degradation at a rate higher than the planting of new trees can mitigate.

Moreover, community involvement and education are essential to the success of these reforestation projects. Local communities need to be empowered with the knowledge and tools to care for the trees and understand the long-term benefits of reforestation. This includes promoting awareness about the importance of conserving water, protecting newly planted areas, and reducing activities that contribute to deforestation and land degradation.

In conclusion, while Iraq’s commitment to planting millions of trees is a commendable step towards addressing the challenges posed by climate change, it is not a cure-all. The survival and growth of these trees depend on selective and careful planning, adequate water resources, and community engagement. As Iraq continues to battle the effects of climate change, it must adopt a holistic approach that integrates reforestation with broader environmental and sustainability initiatives to ensure a greener, more resilient future for all. Iraq’s future depends on comprehensive climate strategies that include adequate water management and policy reform. Given the country’s current political and economic challenges, these goals seem ambitious at best.

To learn more about Iraq's broader environmental strategy, you can explore the country’s blueprint for a greener future as supported by efforts from the United Nations Development Program. 

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Solar Moonshot Program Hits 150th Project Milestone

This year, our Solar Moonshot Program celebrates a significant milestone: supporting our 150th project!

This year, our Solar Moonshot Program celebrates a significant milestone: supporting our 150th project! Since its inception in 2020, this initiative has been dedicated to facilitating the transition to clean energy for nonprofit organizations across the United States. Our primary objective is to empower nonprofits serving Communities of Concern to adopt solar, thereby reducing their environmental footprint and allowing them to allocate more resources towards their missions and the communities they serve. To date, a whooping 217,581.18 kW of solar power has been supported thanks to this program, offsetting dirty energy accelerating the climate crisis. 

These grants play a pivotal role in funding solar projects for nonprofits, covering essential costs such as the equipment, installation and maintenance, often to organizations too small to secure traditional solar financing. Grant priority is given to organizations that are located in or serve Communities of Concern, which to us often means BIPOC, LGBTQIA2S+, women-led and other groups of people that have historically been underinvested in or marginalized. Over the past five years, the Solar Moonshot Program has successfully funded over 150 projects, totaling over $3.3 million in grants executed and $272,068 in tax credit bridge loans, spanning a wide range of sectors. From community centers, schools and homeless shelters to wildlife sanctuaries, Indigenous elders and educational institutions, each project represents a significant step towards a more just and livable future. We have projects across the nation, in 29 states, Puerto Rico and our first international project in Rwanda. These installations not only contribute to the reduction of carbon emissions but also serve as tangible examples of renewable energy adoption within communities while supporting local green jobs and stimulating regional economies.

We are proud that our 150th project grant was a local San Diego project. The Sherman Heights Community Center is a 501(c)(3) nonprofit organization celebrating their 30th year serving the community. They have a mission to foster community through education, cultural enrichment, health promotion and personal development. The community they serve is predominantly Mexican-American with many families facing economic hardship. They serve about 20,000 community members annually, mostly residents in Sherman Heights and the nearby communities of Grant Hill, Logan Heights, Barrio Logan, San Ysidro and other South Bay communities facing environmental injustices.

We had much more involvement with this grantee than usual, and it's been our pleasure to guide this project from concept through completion. Last year San Diego Community Power opened its first Community Clean Energy Grant Program application period. Hammond Climate Solutions Foundation wanted a community-led project so we reached out to the community asking for recommendations of nonprofits for a solar and storage project. The Sherman Heights Community Center came highly recommended and we were thrilled to support such an impactful organization. The Solar Moonshot Program grant was funded by BQuest Foundation, our philanthropic partner that has supported the program since 2020, and also provided a low-interest tax credit bridge loan for this project. 

The 24kW solar power and 19.2kWh energy storage system was designed and installed by Aloha Solar Power, an International Brotherhood of Electrical Workers (IBEW) Local 569 contractor, supporting local, union jobs while providing on-the-job training for apprentices. 

It's exciting that the solar and storage project is slated to offset 99.6% of the community center’s energy usage, which should result in over $400,000 in electricity bill savings during the lifetime of the system! These substantial savings will be reinvested into the community center and the Communities of Concern it serves. In addition to the clean energy system reducing CO2 emissions, it can provide electricity to the community during power outages, offers clean energy education and supports regional economic growth. 

The Sherman Heights Community Center’s clean energy project was made possible thanks to the organizations and individuals whose financial contributions totaled over $89,000 through our Solar Moonshot Program: BQuest Foundation, San Diego Community Power’s Community Clean Energy Innovation Grant Program in partnership with the San Diego Foundation, Futures Unbound, Greentech Renewables San Diego, IBEW Local 569 and Ann Dynes. To help the community center secure the final portion of funding needed for the project to proceed, we offered to host our first-ever fundraiser: the Pickleball Fundraiser for the Sherman Heights Community Center Clean Energy Project. The fundraiser was a success and a lot of fun! Thanks to all of the participants who helped us raise an additional $14,000 for this project. We’d like to give a shout out to the La Jolla Pickleball Club as well as the companies that donated food and auction items, which made it possible for 100 percent of the funds raised to go towards this clean energy project. 

As we reflect on the achievements of the Solar Moonshot Program over the past five years, we extend our heartfelt gratitude to our partners, supporters and the inspiring nonprofits who are driving positive change in their respective communities. We are so thankful to our generous philanthropic funders that have made this program possible: Left Coast Fund, BQuest Foundation and an anonymous donor through the San Diego Foundation. We appreciate the support from Palomar this year as well. 

We currently have funding for solar grants and loans available! To learn more about the Solar Moonshot Program, including previous grantees, we encourage you to visit our website.

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