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CA’s deadline to go solar to maximize savings is upcoming

Policy

In case you missed it, in December 2022, the California Public Utilities Commission (CPUC) issued a decision that ended a nearly two-year long battle between the investor-owned utilities and environmental groups over the future of rooftop solar in California. Although there was a coalition over 600 strong comprised of environmental and climate change organizations, nonprofits, schools, cities, churches, businesses and elected officials who spent two years urging the CPUC to keep solar growing sustainably, as instructed by law, the CPUC ultimately decided to side with the investor-owned utilities and made significant cuts to agreement solar customers go on, known as net energy metering. You can read more about the coalition here

Under the new net energy metering (NEM) agreement (known as NEM 3), solar customers will get about 75 percent less from the utility for the clean, local and reliable excess energy they share with their neighbors (which the utilities still charge their neighbors full transmission and distribution fees for). Just to give you a sense of how the new tariff compares to what solar customers are receiving currently, compensation for energy will go from an average of $.25/kWh all the way down to about $0.05/kWh. NEM 3 customers will also be forced to go on rates that have higher rates in the evening. All in all, these changes will nearly double the time it takes to pay off a residential system.  

There is some good news.  

If you already have solar, these changes will not affect you! All NEM 1 and NEM 2 customers will continue to receive benefits until their agreement expires, which is 20 years after the system was turned on. The only scenario that would make a customer lose their current NEM status is if a customer adds additional panels that exceed the allocated amount. 

The NEM 3 decision includes a “sunset period” that ends 120 days after the approval of the final decision, meaning anyone who goes solar before the sunset period date is still eligible for NEM 2. In order to go solar and receive maximum benefits, a solar contractor must submit a completed interconnection agreement without significant errors and a signed contract by April 14, although we recommend getting this submitted as soon as possible in case there are errors that need to be resolved. The solar power system can be installed after the cutoff date, so long as the application is submitted by April 14 and it is approved by the utility, however, if any significant changes are made to the equipment being used or system size, that would trigger a new application and cause the customer to lose their NEM 2 status.    

As the proceeding currently stands, customers should be prepared to go solar by the cutoff date, April 14, in order to receive the maximum benefits, however, there is a small possibility that this decision could be reversed entirely. Last month, the Center for Biological Diversity, Environmental Working Group and Protect Our Communities Foundation filed a formal appeal to reverse the CPUC’s final decision. The appeal highlighted ways in which the CPUC violated the law. 

The first and perhaps most obvious issue is that the decision violates a California law requiring the sustainable growth of rooftop solar. The California law is very clear in stating that the new NEM tariff must “ensure that customer-sited renewable distributed generation continues to grow sustainably,” During the course of the proceeding, some commissioner’s even stated that this decision may slow rooftop solar adoption but the CPUC has to consider other issues as well. The appeal rightfully argues that this decision is not the CPUC’s decision to make, as the law is very clear. 

The second issue is that the decision violates another California law that requires the CPUC to put forward an alternative option that would increase solar in communities of concern. The current California law states that any changes to NEM must include an option that will grow solar in “disadvantaged communities.” Not only does the decision actually make rooftop solar more expensive for everyone and disproportionately impacts communities of concern, but the CPUC promises funds to disadvantaged communities that are not available unless the legislature allocates them and are only for battery storage, not rooftop solar. 

  

The overarching issue of the entire proceeding is that the CPUC completely failed to account for all of the benefits and costs of rooftop solar. Any changes to NEM should have been based on the costs and benefits to all ratepayers and the CPUC not only disregarded the benefits of rooftop solar, but also misrepresented the impacts of long distance transmission lines. The appeal claims that in disregarding evidence presented to them, they violated their own process and precedent.  

What's next? 

Although the appeal is strong in its merits, this appeal is simply administrative, meaning that the CPUC has no real timeline to respond to the appeal or make any decisions. If the CPUC fails to respond within 90 days, the organizations that filed the appeal can escalate the appeal to an appeals court, which representatives have stated is the plan. 

The appeal is strong, and has already gained support from groups like 350.org and Solar Rights Alliance, however appeals similar to this have been filed in previous CPUC proceedings and were ultimately dismissed by a court of law and the CPUC. While we should remain optimistic about the appeal, customers should still plan to follow the current deadlines on the table to ensure they don’t miss the opportunity to go solar.   

Bottom line is that if you can go solar now, we recommend it as you’ll be able to maximize your savings and start producing clean energy soon!

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Image of the City of San DIego logo in front of solar panels

The City of San Diego’s Environment Committee Stands up for Rooftop Solar

Today, the City of San Diego’s Environment Committee took a huge step in supporting rooftop solar by passing a resolution that advocates for a strong net energy metering 3.0 (NEM 3.0), the future solar agreement in California that is being determined by the California Public Utilities Commission (CPUC). If the resolution is adopted by the full city council, the City of San Diego could be the second city in the state, following Solana Beach, to issue a resolution that advocates for the continued growth of solar, rejecting the investor-owned utilities’ proposal to extend payback periods for all solar projects, even in communities of concern, and impose the highest monthly solar fees in the nation.

Today, the City of San Diego’s Environment Committee took a huge step in supporting rooftop solar by passing a resolution that advocates for a strong net energy metering 3.0 (NEM 3.0), the future solar agreement in California that is being determined by the California Public Utilities Commission (CPUC).  If the resolution is adopted by the full city council, the City of San Diego could be the second city in the state, following Solana Beach, to issue a resolution that advocates for the continued growth of solar, rejecting the investor-owned utilities’ proposal to extend payback periods for all solar projects, even in communities of concern, and impose the highest monthly solar fees in the nation.  


The resolution passed unanimously in a 4-0 vote, urging the CPUC to reject any proposal that would stop rooftop solar from continuing to grow while urging the commissioners to consider alternatives that would expand solar access in communities of concern.  Over 60 public comments, both written and verbal, were heard from local organizations that were overwhelming in support of a strong net metering, including comments from representatives of Climate Action Campaign, SanDiego350, GRID Alternatives San Diego, San Diego Democrats for Environmental Action, Protect Our Communities Foundation and others, all of which urged the committee to approve the resolution.  The key role NEM 3.0 has in increasing the adoption of rooftop solar and moving away from consuming dirty, harmful fossil fuels was noted by speakers. 


The draft resolution states that “San Diego City Council supports a CPUC NEM 3.0 decision, which emphasizes the sustainable growth of customer sited solar electric and energy storage facilities in order to meet California’s clean energy targets, particularly residential customers in disadvantaged communities” and urges the CPUC to reject any proposal that undervalues the societal benefits of renewable generation. 


Today’s vote is a big win for over 30 local San Diego environmental and advocacy organizations, schools, cities, student organizations and equity groups who are working tirelessly to advocate for a strong NEM 3.0 to keep rooftop solar as a key climate solution and a tool to reach 100 percent clean energy targets.  Rooftop solar also provides local green jobs, supports the regional economy, offers grid resilience and helps ratepayers avoid rate increases from additional utility infrastructure, which the IOUs get a guaranteed return on investment from.  A recent Vibrant Clean Energy Study shows that California ratepayers can save $120 billion from rooftop solar while reducing the risk of wildfires, which ratepayers now must pay for. 


This decision comes just after the San Diego Community Power Board of Directors issued a letter to the CPUC commissioners and Governor Gavin Newsom stating similar concerns over the high fixed monthly charges included in the IOUs’ proposal and the devastating impacts that could have on rooftop solar adoption.  The resolution is now headed to the full city council for a vote, which is anticipated to take place before the CPUC’s proposed decision is released by mid-December of this year. The City of Chula Vista is expected to vote on a similar resolution in the coming weeks. 


For latest information and up-to-date calls to action, visit our net metering 3.0 toolkit

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Comic strip illustrating the absurdity of trying to kill solar adoption during the climate crisis

How an Environmental Group Aligned with Monopoly Utilities to Squash Rooftop Solar

A half-century old nonprofit organization is flaunting its laurels to obscure its support of anti-climate, pro-utility legislation. Blind esteem for this organization is actively derailing clean energy legislation and climate policies. So why would an organization dedicated to protecting the earth support anti-climate policies? Let's take a look.

California’s legislative session has closed for 2021 and elected officials are beginning to discuss 2022 legislative priorities, undoubtedly strategizing about which groups will likely support or oppose their bills. As many California elected officials ran on progressive platforms, getting buy-in from environmental groups will be a big priority for many Democratic lawmakers.


One group that’s getting a lot of attention from climate activists is the Natural Resources Defense Council (NRDC), which has a mission to “safeguard the earth—its people, its plants and animals, and the natural systems on which all life depends and has always been traditionally looked at as an environmental organization.” Historically, NRDC has been highly respected and considered a reputable climate organization, with taglines like “Earth’s best defense” and with big wins like preserving critical species and securing broad legal protections for wildlife and marine protected areas. In 2010, NRDC helped to craft the first ever national ocean policy, which improves coordination among states and created a National Ocean Policy. Internationally, NRDC worked with partners to develop a first-of-its-kind United Nations agreement that requires the regulation of bottom trawling. NRDC has done some great work in the climate space. 


NRDC was established as a nonprofit organization 51 years ago and its support or opposition is highly valued, however, its seniority and past wins have allowed the organization to support anti-climate, pro-utility legislation while still being regarded by many as a reputable environmental group, derailing legislation and climate policies. Why would an organization dedicated to protecting the earth support anti-climate policies? While it’s not well known, NRDC has a history of siding with the investor-owned utilities to advance a fossil fuel agenda, although more individuals and organizations are taking notice as of late. 


After John Bryson co-founded NRDC, he served as a commissioner for the California Public Utilities Commission (CPUC) and eventually went on to become the CEO of Edison International, which founded the Edison International Institute (EII). EII is a utility-backed organization, which has produced studies biased against rooftop solar and led the attacks on the industry over the years. Taking a deeper look into NRDC’s history, Ralph Cavanagh, a senior lawyer from NRDC, set up the “California Collaborative Process” in 1989, which according to the San Francisco Bay Guardian, enabled key environmentalists to "meet behind closed doors with top executives from private utilities to smooth over their differences and hammer out energy-efficiency programs.” 


NRDC has issued at least four joint statements with Edison Electric Institute since 2002 regarding all manner of clean energy policy, which NRDC makes no effort to hide. In 2014, NRDC made a deal with the utility industry in which the utilities would stop fighting the existence of energy efficiency and rooftop solar in exchange for NRDC's support for designing these programs so the utilities can maintain their profit margins. Beyond joint statements from NRDC and utility groups, NRDC has also worked with the utilities to draft anti-climate policies. For example, in 2016, NRDC and the utilities jointly filed for changes to the state’s net energy metering program, the rooftop solar agreement that has helped over one million California families, schools, businesses, cities and organizations to go solar. In 2019, as policymakers were debating whether or not Pacific Gas & Electric (PG&E) should be held liable for the fires PG&E caused, the LA Times reported NRDC’s ‘Cavanagh thinks state legislators should change the law so that PG&E and other utilities aren’t held liable for fires sparked by their infrastructure unless they’re found to be negligent. “Our utility liability rules are unworkable. They menace every utility in California, and they need to be fixed,” he said. “This is not just about PG&E, and it’s a mistake to treat it as such.”’


Fast forward to this year when we watched NRDC undermine rooftop solar by supporting the “kill solar bill” in California, Assembly Bill 1139, and submitting an anti-solar proposal for the state’s net energy metering program, which will determine the future rooftop solar agreement in California. Beyond that, NRDC has made attempts to derail the net energy metering proceeding by suggesting major changes to the tool that determines how the CPUC values rooftop solar.  Further, the lawyer representing NRDC in the net energy metering proceeding formerly represented PG&E for 15 years, and represented Pacific Gas Transmission Company, a subsidiary of PG&E, for two years.


Environmentalists and climate justice advocates are beyond frustrated with NRDC’s actions. Not only is NRDC selling out to monopoly utility companies supporting environmental racism and accelerating the climate crisis, which often impacts communities of concern first and worst, its actions are causing decision makers to cite “environmental groups support {insert anti-solar initiative}” when in reality, it’s just one so-called environmental group that has a long-standing track record supporting the investor-owned utility companies. NRDC prioritizing that relationship over advocating to keep a proven climate solution an option for California, is not only disappointing, it has major consequences for environmental justice and climate policies. 


When asked about the hypocrisy of NRDC’s disingenuous equity claims about rooftop solar, citing the Vibrant Energy study that shows rooftop solar reduces costs for all ratepayers, and pointing out that the top reasons electricity rates are increasing are because of infrastructure that investor-owned utilities get a guaranteed return on investment on and fire-related costs, NRDC did not address or refute our points and did not provide any facts to defend the organization’s stance. When we asked why over 100 climate and equity organizations opposed Assembly Bill 1139 yet NRDC was the only “environmental group” supporting it, an NRDC employee responded by insinuating that their organization understood the issue better than traditional environmental organizations, which weren’t aware of what exactly they were signing on to. That is not factual and is an insult to the organizations, now a broad, diverse coalition of more than 350 nonprofits, small businesses, labor unions, faith-based groups and other members, many of which meet on a monthly basis to save rooftop solar.


It is clear that NRDC works to push investor-owned utility agendas, therefore it is extremely dangerous for NRDC to continue being characterized as an environmental organization and utilized by decision makers to pass anti-climate legislation and policies during a climate emergency when we need to move away from fossil fuels and towards zero carbon. We urge legislators, CPUC commissioners and other elected officials to not mistake buy-in from NRDC as buy-in from environmental groups, because NRDC does not represent the vast majority of environmental groups nor do NRDC’s actions show it's truly trying to end climate injustices and the climate crisis. Please help us fight for a more just and livable future by spreading the word and by reaching out to NRDC, asking the organization to support rooftop solar as a solution to reduce climate racism and to slow the impacts of the climate crisis. To join us in protecting rooftop solar, please visit www.HelpCleanEnergy.org.

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Image of sunset over a roof mounted solar system

City of Solana Beach Becomes a Statewide Leader Standing up for Rooftop Solar

On September 8, the City of Solana Beach became the second jurisdiction in the Golden State to approve a resolution standing up for rooftop solar, sending a strong message to the California Public Utilities Commission (CPUC), which will be making a decision later this year on changes to the net energy metering policy in California.

On September 8, the City of Solana Beach became the second jurisdiction in the Golden State to approve a resolution standing up for rooftop solar, sending a strong message to the California Public Utilities Commission (CPUC), which will be making a decision later this year on changes to the net energy metering policy in California.  The Santa Cruz County Board of Supervisors approved a similar resolution earlier this year. Net energy metering is a billing arrangement between rooftop solar producers and their energy providers that credit customers with the excess energy they send back to the grid and debits customers for energy taken from the grid.  This agreement is what has allowed solar to become increasingly accessible to working-class families, small businesses, cities, schools and nonprofit organizations. 


The resolution urging the CPUC to make changes that will keep solar growing sustainably while expanding solar access to low-and-moderate income communities was approved unanimously by the Solana Beach City Council members in a 5-0 vote after hearing public comments overwhelmingly in support of passing the resolution.  Local organizations Climate Action Campaign, SanDiego350 and CleanEarth4Kids joined the Hammond Climate Solutions team along with residents from Solana Beach and the Solar Rights Alliance in calling in to make public comments, letting the Solana Beach City Council know they were in full support of the resolution.  Many others submitted written comments in support of the resolution. 


The only comment that wasn’t emphatically in support of the resolution was unsurprisingly from a San Diego Gas & Electric employee, and the other speakers addressed SDG&E’s disingenuous equity arguments, which council members acknowledged were passionately and accurately relayed. 


“SDG&E and Sempra are trying to mislead the public by citing studies that lack credibility to eliminate rooftop solar, a cost-effective, proven solution that reduces climate racism in California and slows the climate crisis, which often impacts communities of concern first and worst - all of this is to increase their profits,” said Tara Hammond, Hammond Climate Solution’s founder and CEO, “Don’t be fooled by their greenwashing campaigns and disingenuous concerns about equity and raising rates.  It’s proven that rooftop solar reduces rates for all ratepayers and is a net benefit to society.”


In the resolution, the City of Solana Beach “urges the CPUC to strengthen NEM to expand access to all households, particularly of low-and-moderate income; expand access to other clean energy technologies that pair with solar, such as batteries; ensure that the solar installations continue to grow in order to meet State and City climate goals; and exclude provisions set forth in the investor-owned utility companies’ proposal such has high monthly fixed fees, and reducing or eliminating credits for sharing electricity with the power grid.” 


The success of rooftop solar relies heavily on a strong net energy metering, and drastic changes that are being proposed by California’s three investor-owned utility companies have the ability to completely disrupt solar adoption across the state.  Slowing down the transition to clean energy means that we will continue to need more dirty energy to meet our needs which will not only further exacerbate the climate crisis but also climate injustices caused by dirty energy, mainly fracked methane gas.  Beyond the environmental benefits clean energy provides, rooftop solar reduces rates for all ratepayers (estimated by Vibrant Energy to the tune of $120 billion for Californians), strengthens the energy grid when paired with storage, provides local green jobs and reduces the risk of wildfires. 


The decision to approve the resolution comes right after President Joe Biden’s administration released a blueprint to produce 45 percent of the nation’s electricity through solar energy by 2050 as a critical part of the effort to fight climate change.  Meeting this goal will require the U.S. to install an average of 30 GW of solar capacity per year between now and 2025 and 60 GW per year from 2025-2030.  If the utility companies are successful in making drastic cuts to net energy metering in California, the nation’s top solar state, meeting this ambitious goal will likely not be possible. 


As the net energy metering proceeding is heating up at the CPUC during the current proceeding where a proposed decision is expected in November and a final decision is expected in January, more organizations and elected officials are publicly coming out in support of a strong net energy metering that will keep rooftop solar growing. 


Just last month, San Diego City Councilmember Raul Campillo released a letter he sent to Governor Gavin Newsom and the CPUC commissioners stating “Please protect NEM. Drastic changes by the California Public Utilities Commission will negatively impact customers, perpetrate environmental injustices, accelerate the climate crisis, and shatter California’s clean energy industry.”  Last week Business for Good San Diego released a letter supporting net metering.  Many San Diego organizations are a part of a statewide coalition of 347 organizations ranging from small business to equity to climate advocacy groups representing a true grassroots movement, which recently issued a statement of support to protect rooftop solar in California. 


With the City of Solana Beach leading the way for Southern California, local activists and organizations are pushing for other cities in the region to adopt similar resolutions and send a strong message to commissioners.  Tomorrow, the San Diego Community Power Community Advisory Committee will vote on a net energy metering letter, and on Monday the City of Chula Vista will discuss the future of net energy metering at its Sustainability Commission meeting. 


Other cities and organizations are expected to speak out as well since the stakes are so high.  Ending rooftop solar would impact regional Climate Action Plans’ 100 percent clean energy targets and local community choice energy programs while taking away future opportunities for San Diegans to go solar and exacerbating the climate crisis. 


For latest information and up-to-date calls to action, visit our net metering toolkit

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