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NEM 2.0 is Coming - But Not Before July 1

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

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

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

417 MWs Remaining in NEM 1.0

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

Why is the 417 MWs remaining important?

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

(Emphasis in the original.)

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

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

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

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

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

Run on Sun is Pasadena Solar!

Run on Sun has been doing Pasadena Solar for more than 10 years, but only now have we gotten around to dedicating a webpage just to Pasadena Solar!

Who loves Pasadena Solar?

I know, kinda silly (and foolish from an SEO perspective) but we figured we were fine as we were. But then I looked at the search results on Google for "Pasadena Solar" and it was really depressing. I mean seriously - read some of those reviews and you know that they are fake - but still their related websites were getting better rankings than ours! Not acceptable!!! So now, if you want to see a webpage that proudly proclaims its love for Pasadena Solar, we've got you covered - complete with this iconic image!

Oh, and because we do so much work in neighboring Altadena we are hoping to do a shout-out page for them too but we need an idea for the quintessential Altadena image - if you have ideas, please let us know!

Suniva Trade Case Update

Last month we wrote about how little known Suniva was pushing for tariffs on imported solar panels to help keep it afloat.  (See "Suniva - the Tail Wagging the Dog.")  Since then some additional developments.

First German-owned panel manufacturer SolarWorld, that has a factory in Oregon, joined Suniva in calling for trade protection.  (SolarWorld's parent company recently also joined Suniva in bankruptcy proceedings.)

Now we learn from The Hill, that two House members - who happen to represent districts where Suniva has a facility, have signed on to a letter to the U.S. International Trade Commission (ITC), claiming that foreign imports have hurt American solar manufacturers, caused job losses in the industry, and caused two large manufacturers to file for bankruptcy.  Apparently the ITC has advised the World Trade Organization (WTO) that it would "investigate" the matter.

Tail wagging the dog, indeed!

The jobs lossed from the Suniva and SolarWorld struggles would pale in comparison to what we would see if these proposed tariffs were imposed. Indeed, SEIA has advised the ITC that some 260,000 U.S. jobs would be in jeopardy if the tariffs were instituted.

But the plot thickens even more.  Bloomberg reports that Suniva's major creditor, SQN Capital Management, is bankrolling Suniva's case, hoping to recover $51 million it is owed for manufacturing equipment!

From Bloomberg:

In a May 3 letter to a Chinese trade group, however, SQN said it wanted to arrange a sale of Suniva's solar-manufacturing equipment. And if that happened the company's assets would be liquidated -- leaving no one left to pursue the trade complaint.
"The trade case would have to be withdrawn," SQN president Jeremiah Silkowski wrote in the letter to a Chinese chamber of commerce whose members include solar-cell makers. "SQN would have no interest in providing additional funding to Suniva."

This is a developing story - watch this space.