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

Policy
February 7, 2023
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4
 min
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by 
Karinna Gonzalez

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. 

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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.  

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There is some good news.  

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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. 

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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.    

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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. 

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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. 

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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.  

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What's next? 

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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. 

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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.   

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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 a ground-mounted solar system at a farm that was funded by the Solar Moonshot Program
Solar Moonshot Program - 2021 Highlights
Foundation
December 28, 2021
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3
 min

Solar Moonshot Program - 2021 Highlights

Over the last year, our team had the privilege of managing the Solar Moonshot Program for the second year in a row. In 2021, 42 nonprofit organizations were able to afford the switch to solar thanks to the $1,000,000 budget from Left Coast Fund, collectively installing 42 clean energy projects in 13 states. The Solar Moonshot Program helped energize 1,115.4kW of rooftop and ground-mounted solar and three solar thermal units, which collectively offset 27,800.5 metric tons of carbon, equivalent to over three million gallons of gasoline consumed or the energy usage of over 3,000 homes. These solar projects are creating healthier communities that have cleaner air, a greater quality of life, more green jobs and workforce training opportunities and reduced likelihood of developing health problems such as asthma that occur as a result of pollution.

Over the last year, our team had the privilege of managing the Solar Moonshot Program for the second year in a row.  In 2021, 42 nonprofit organizations were able to afford the switch to solar thanks to the $1,000,000 budget from Left Coast Fund, collectively installing 42 clean energy projects in 13 states.  The Solar Moonshot Program helped energize 1,115.4kW of rooftop and ground-mounted solar and three solar thermal units, which collectively offset 27,800.5 metric tons of carbon, equivalent to over three million gallons of gasoline consumed or the energy usage of over 3,000 homes.  These solar projects are creating healthier communities that have cleaner air, a greater quality of life, more green jobs and workforce training opportunities and reduced likelihood of developing health problems such as asthma that occur as a result of pollution.


Through the generous funding from Left Coast Fund and the partnerships that made these projects possible, communities are reducing their reliance on dirty fossil fuels, supporting the green economy, saving money that is being reinvested in the nonprofits’ missions and creating educational opportunities for community members.  The solar photovoltaic and solar thermal projects simultaneously demonstrate the feasibility of clean energy for community members, many who do not have equitable access to these key climate solutions.


While the Solar Moonshot Program is intended to help nonprofit organizations go solar, tribal nations and communities as a whole can benefit from the funds available through partnerships with 501(c)(3) nonprofit organizations.  Funding from the 2021 budget year assisted a wide range of recipients, from community resilience hubs and community land trusts, to Indigenous communities, school districts and nonprofit organizations providing long-term solutions for houseless folx.


As noted in our Solar Moonshot Program - 2020 Highlights blog post, in early 2020, Hammond Climate Solutions was brought on to manage the “50 Solar States Project” by a San Diego-based philanthropist who provides funding through Left Coast Fund.  This project was the original initiative behind the Solar Moonshot Program and intended to fund one solar project in each state in the U.S.  The urgency of the climate crisis encouraged a pivot to focus on deploying solar as quickly as possible, rather than location, and the Solar Moonshot Program came to fruition as a result.


Along with last year’s $1,000,000 budget commitment, our team’s goal for 2021 was to fund 40 projects, with up to $25,000 being awarded to each participant.  We reached this goal and assisted three solar thermal and 41 rooftop solar projects this year, for an average grant amount of $23,637. Since the program began in 2020, we have been able to help a total of 87 nonprofit organizations go solar!


Projects supported climate justice efforts throughout the U.S., spearheaded by 2021 grant recipients like Community Treehouse Center Detroit, a nonprofit organization that assisted 11 homeowners in the neighborhood of Jefferson Chalmers to go solar.  The community of concern is located on the southeast side of Detroit and is already experiencing disproportionate effects of the climate crisis - efforts led by the organization’s founder and president, Tammy Black, are investing in the community’s future through programs that support persons with disabilities and mental wellness, entrepreneurship, green spaces, clean energy, financial wellbeing and more.  The solar project will help reduce local climate injustices, create climate resiliency and reinvest in the organization’s mission of creating a safe and sustainable community where all folx can succeed.


The following organizations have received grants this past year and are collectively helping combat the climate crisis:



We are excited to announce that we’ll be managing the Solar Moonshot Program in 2022 thanks to generous support from Left Coast Fund and the BQuest Foundation!  Project funding levels and prioritization will be based on the projects' financial need and installation timeline. Nonprofits interested in applying for a Solar Moonshot Program grant can visit the website, www.solarmoonshot.org.  We invite you to follow us on social media to see our #SolarSaturday posts, which highlight the amazing nonprofit organizations going solar and helping create a more just and livable future.  We can be found on Facebook, LinkedIn, Instagram and Twitter.


If you know of a foundation or philanthropist interested in supporting the Solar Moonshot Program in 2022, further expanding our impact, please reach out to Tara at tara@hammondclimatesolutions.com. 


Photo caption: Solar panel system located at Solidarity Farm in Pauma Valley, Calif., Apr. 8, 2021. (Photo/Aloha Solar Power)

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Solar advocates protesting in front of the state capitol
California Agency Proposes an 80 Percent Reduction in Benefits for Solar Customers
Policy
December 28, 2021
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3
 min

California Agency Proposes an 80 Percent Reduction in Benefits for Solar Customers

Over the course of this year, Hammond Climate Solutions has released nine blogs, numerous toolkits with calls to action and participated in countless meetings, presentations and webinars to raise awareness about how the monopoly utilities are trying to kill rooftop solar in California. We managed to help grow a local coalition consisting of cities, elected officials, environmental and climate justice organizations and schools. San Diego County residents have made their voices heard, and the message is clear - we want to see solar continue to grow. The highly-anticipated net energy metering (NEM) 3.0 proposed decision was released this week and it is very clear that the California Public Utilities Commission (CPUC) has sided with the utilities and is proposing to make drastic cuts to the benefits of going solar.

Over the course of this year, Hammond Climate Solutions has released nine blogs, numerous toolkits with calls to action and participated in countless meetings, presentations and webinars to raise awareness about how the monopoly utilities are trying to kill rooftop solar in California.  We managed to help grow a local coalition consisting of cities, elected officials, environmental and climate justice organizations and schools.  San Diego County residents have made their voices heard, and the message is clear - we want to see solar continue to grow.  The highly-anticipated net energy metering (NEM) 3.0 proposed decision was released this week and it is very clear that the California Public Utilities Commission (CPUC) has sided with the utilities and is proposing to make drastic cuts to the benefits of going solar. 


The first of many changes to the policy, which has allowed rooftop solar to become increasingly accessible to low and moderate-income families, is drastic cuts to the credit that solar customers receive for sharing their excess electricity with their neighbors.  The proposed decision cuts this credit by 80 percent, from around 25 cents per kilowatt hour all the way down to 5 cents per kilowatt hour.  This immediate change alone is enough to see a major reduction in rooftop solar installations and therefore a reduction in solar jobs across the state, however the decision goes further than making cuts to current credits. 


The CPUC has also sided with the investor-owned utilities to slap solar customers with high punitive monthly fees.  The fees themselves will depend on the system size, however an average system in the San Diego Gas & Electric (SDG&E) utility territory will carry the monthly fee of about $64 per month, the highest in the nation.  This fee is in addition to a loan or lease payment, which disproportionately impacts families who utilize solar financing options to afford the switch to solar. 


Beyond the draconian measures the CPUC and investor-owned utilities have taken to discourage new solar customers, they have gone a step further to impose changes on existing customers as well.  The NEM 1.0 and NEM 2.0 agreements that apply to current customers established a 20 year transition period, whereby solar customers were permitted to remain on their applicable NEM tariff for 20 years from the date of interconnection with the grid.  Therefore, solar customers naturally used 20-year financial models to determine the economic benefit of their investment, but the proposed decision is set to negate the bankability of those projections with a 25 percent reduction in grandfathering periods for existing customers. 


As our local and statewide coalition grew, and after delivering 120,000 petition signatures to Governor Newsom, we were hopeful that the CPUC would be on our side and that we would be advocating for small changes in the proposed decision, however it is clear that the CPUC has sided with the monopoly utilities.  As California continues to see the effects of the climate crisis and fires, flooding and blackouts are becoming more and more common, now more than ever is the time to fight back against this utility profit grab! 


Call Governor Newsom today!  Call Governor Newsom directly at (916) 445-2841 or use the Solar Rights Alliance’s calling tool to call.  Press 6 to speak to a representative or press 3 to leave a voicemail.  A sample script is below: 


 “My name is ___ and I live in ____. I am against the proposal to cut the benefits of rooftop solar!  The high solar fees and cutting the benefits of solar by 80% will kill the solar market and worsen the climate crisis.  Nobody should pay a penalty for putting solar panels on their roof and California should be doing more, not less, to promote rooftop solar.  Please say no to the utilities’ profit grab, and yes to helping millions of working and middle class people get solar.“

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Image of packaging littering a beautiful beach
Celebrating the Holidays and Gift Giving Amidst the Climate and Plastic Pollution Crises
Lifestyle
December 21, 2021
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3
 min

Celebrating the Holidays and Gift Giving Amidst the Climate and Plastic Pollution Crises

Whether you celebrate Hanukkah, Christmas, Kwanzaa, another holiday or none at all, the holiday season brings with it an opportunity to shift societal patterns of overconsumption to sustainable giving. Every year around this time, mass consumption is incentivized more than usual with “holidays” like Black Friday and Cyber Monday. Sales for the holiday season are starting earlier and earlier, and consumers are taking advantage of it. Corporations, which already have far-reaching impacts on the environment, see a dramatic sales increase during this time - Amazon alone has a 260 percent increase in usage on Black Friday each year, translating into not only more stuff in our landfills, but also more money into big businesses and more pollution with the increase in mass production and transportation.

Whether you celebrate Hanukkah, Christmas, Kwanzaa, another holiday or none at all, the holiday season brings with it an opportunity to shift societal patterns of overconsumption to sustainable giving.  Every year around this time, mass consumption is incentivized more than usual with “holidays” like Black Friday and Cyber Monday.  Sales for the holiday season are starting earlier and earlier, and consumers are taking advantage of it.  Corporations, which already have far-reaching impacts on the environment, see a dramatic sales increase during this time - Amazon alone has a 260 percent increase in usage on Black Friday each year, translating into not only more stuff in our landfills, but also more money into big businesses and more pollution with the increase in mass production and transportation.


While U.S. waste statistics are already staggering to begin with, we’re bringing this one back from last year’s holiday blog post as a reminder of just how critical it is to be mindful of waste during the holidays: from Thanksgiving to New Year’s, Americans throw away one million extra tons of trash per week.  If there is anything this year’s U.N. Climate Change Conference taught us, it is that much, much more action is needed - even with COP26 pledges, the world is currently not on track to meet the Paris climate agreement’s goal.  The good news is that each of us always has the ability to make empowering choices, especially around this time.  From shopping local to participating in “Buy Nothing,” we’ve rounded up our recommendations for sustainable holiday celebrations this year, so we can give from a place of protecting future generations and mindfulness.


Food and sustainability this season


The holidays tend to be loaded with meat and if you choose to eat plant-based like many of us, it can be an awkward time.  Family members may judge, let alone simply not understand, and it isn’t fun to be the one going hungry at a gathering.  Cultural foods that are typically made with meat can still be enjoyed, too! Below are some recipes that vegans, vegetarians and meat eaters alike will enjoy, if you have the time and accessibility to create sustainable meals that will satisfy almost everyone at the table:


  • Make it low-waste by opting for the coconut oil over canola oil, and reusing the glass jar
  • Make it low-waste by adapting the recipe to use fresh hominy in bulk
  • Make them low-waste by bringing produce bags to the grocery store and shopping in bulk for quinoa and lentils!


Sustainable gift-giving guide


Selecting gifts is where it gets tough for many, but there are countless ways to reduce your climate and plastic pollution impacts with holiday shopping.  In general, we encourage shopping at local stores owned by folks from communities of concern to reinvest in the communities that are disproportionately experiencing the burden of the climate crisis.  Some of our favorite gift ideas for loved ones include:


  • Give tickets for an event or museum, supporting local artists and organizations (and aim to walk, bike or take public transportation when the time comes)
  • Purchase a visitors pass from your local aquarium or animal sanctuary to support conservation efforts close to home
  • Give a gift certificate to a local zero waste shop or favorite vegan eatery 
  • Our team’s favorite San Diego-based zero waste store is Earthwell Refill (which is Black-owned)
  • Donate to a local climate nonprofit organization on behalf of family and friends to support activists holding corporations and Big Oil accountable
  • Donate to a nonprofit news publication and earmark funds for environmental reporting
  • An example for those local to San Diego like our team, Voice of San Diego is a publication that works hard to highlight local climate issues and the critical movements fighting for climate justice


Traveling for the holidays?


Unlike last year, some of us may be traveling for the holidays this year.  With that, also comes the likelihood of opting for convenience and sometimes, not being mindful of our impact.  Here are some ways you can minimize your carbon and trash footprint if you’re planning on visiting loved ones this season:


  • If traveling to multiple areas, aim for low-carbon transportation when possible
  • Eat at sustainability-focused restaurants within reasonable distance - make it more sustainable by opting for local, organic, plant-based food and drinks
  • Carry reusable utensils with you - if you don’t have a kit, make your own, and wrap up a fork, knife, spoon, and chopsticks if desired into a reusable napkin!
  • Remember to bring a reusable water bottle - many airports have water refill stations alongside drinking fountains
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