Tag: "sce"

01/14/22

  03:05:00 am, by Jim Jenal - Founder & CEO   , 270 words  
Categories: All About Solar Power, Commercial Solar, Residential Solar, Non-profit solar, Net Metering

Run on Sun Rallies for Solar Jobs - along with a few thousand of our friends!

On Thursday, January 13, 2022, the Run on Sun crew - and a few thousand of our friends and colleagues - got together at simultaneous rallies in Los Angeles and San Francisco.  Our message was simple: the Proposed Decision from the California Public Utilities Commission (CPUC) would imperil thousands of solar jobs, drive up the cost for solar for everyone (truly meaning that only the most affluent could afford it), and frustrate California’s efforts to address Climate Change.  It is time for Governor Newsom to do more than suggest that the proposal, “needs some work."  In fact, the Proposed Decision needs to be scrapped in favor of a policy that will make solar more affordable for everyone.

Nearly two thousand people gathered in LA’s Grand Park to listen to CALSSA’s Policy Director,  Brad Heavner, and other speakers exhort the crowd to stand strong in solidarity against the CPUC’s disastrous proposal.  We then marched from the park the four blocks to the CPUC’s offices in DTLA.  Along the way we were greeted by cars honking in support of solar - including the driver of a Metro bus!

Here are some images from the rally:

Amanda does her thing!

Project Coordinator Amanda Watson puts the finishing touches on our signs!

Crowd listens

Crowd at Grand Park listens to Brad and the other speakers.

Marching to the CPUC!

Amanda’s colorful sign tells the story!

Making our voices heard

Making our voices heard outside the CPUC offices.

Colleagues

Amanda and Adrian flank Scanifly’s Chance Venable at the march’s end.

By any measure, the rallies were a success - but there’s still one metric to be determined: the final outcome! Of course, we will write about that as soon as we know more. Watch this space.

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10/30/21

  03:11:00 am, by Jim Jenal - Founder & CEO   , 588 words  
Categories: Solar Economics, Residential Solar, Net Metering

NEM 3.0 Transition Rules - Potential Solar Clients Need to Read This!

New solar clients in Southern California Edison territory (along with their counterparts in PG&E or SDG&E territories) will soon find themselves operating under the not yet known, but certainly less advantageous NEM 3.0 rules that has the potential to significantly affect their return on investment.  While NEM 3.0 won’t go into effect for some time, we already have an idea of what clients need to do to secure the benefits of the present NEM rules.  Here’s what we know so far…

NEM 2.0 - the Present State of Play

SCE customer presently operate under NEM 2.0 rules established a number of years ago.  (Municipal utility customers, such as those in PWP or LADWP, are unaffected by any of this, fortunately.)  We wrote extensively about the impact of the NEM 2.0 transition at the time, as this article from 2017 explained: NEM 2.0 is Here - Now What? 

Essentially the NEM 2.0 rules made several changes: they introduced a one-time application fee of $75, they forced solar customers onto a Time-of-Use rate structure (instead of the more solar-friendly tiered rates), and they introduced the concept of non-bypassable charges - components of the rate structure that have to be paid on every kWh imported from the grid, even if it would otherwise be “netted out” thanks to energy exported.

Those changes, while concerning as they marked the first successful effort to chip away at the benefits of net metering, turned out to be relatively mild and the industry surged forward despite them.

NEM 3.0 - Dark Days Ahead?

Now we are in the middle of the process of bringing about NEM 3.0, and it looks far scarier than what we faced in 2017.  For example, one proposal calls for monthly fees on the order of $75 for every residential solar customer (commercial customers would pay far more).  The value of exported energy might drop by as much as 80%!  Payback periods could balloon to as much as 20 years!

(Take a moment to sign the petition to make the new NEM 3.0 rules more favorable to solar system owners!)

However that process turns out, if it is possible to get in under the current rules you will save a lot of money!  Here’s what we know about how the transition period will be handled:

  • If you sign a contract and submit your complete interconnection application to SCE by mid-January you are guaranteed of 20 years under the more favorable NEM 2.0 rules!

  • If you submit between mid-January and April, you will start under NEM 2.0, but the 20-year term is not guaranteed.

  • If you submit after April but before NEM 3.0 is fully up and running, you will start on NEM 2.0 for a set term of years, but you may be forced onto a rate that includes a monthly fee.

  • Applications submitted after August, will likely be completely under NEM 3.0

The uncertainty around all of this is distressing but is out of our hands.

What we can do is to urge folks on the fence about going solar to act before mid-January.  Bear in mind that the project does not need to be completed by mid-January, you simply have to have your completed application submitted by then.  We anticipate quite the rush to get applications in by then, and there is always the concern that a reviewer at SCE might kick back an application and deem it incomplete.  The best way to be safe is to get the application in as soon as possible, thereby avoiding the crunch.

So right now really is the best time for anyone in SCE’s service area to go solar!  Give us a call and let’s get the process started!

 

Tags: ,

05/26/21

  04:43:00 am, by Jim Jenal - Founder & CEO   , 173 words  
Categories: All About Solar Power, Solar Economics, SCE, Commercial Solar, Residential Solar, Ranting, Non-profit solar, SDG&E

Stop AB1139!

We have written about the perils of AB 1139 and how it would gut net energy metering for all solar owners, regardless of “grandfathering” that they were promised.  Having sailed through two Assembly committees unscathed, it is scheduled for a floor vote in the Assembly tomorrow, Thursday, May 27th. 

We need you to call your Assemblymember NOW to get them to vote No on this terrible bill.

Here is the News Flash that we just sent out to our subscribers:

 AB 1139 Heads to Floor Vote
Take Action Today

AB 1139, the Utility Profit Grab bill to kill rooftop solar and hurt your solar investment heads to an Assembly Floor vote expected TOMORROW. Call your assemblymember to stop the bill right now! Click here to take action.
 

We need to flood the assembly with thousands of phone calls. Phone calls work! So, Please call now. It takes 2 minutes.

When you click the link below, we will help you determine your Assemblymember and set up the call for you - it couldn’t be easier.

 
Call your Assemblymember Now
 

Thank you for your support!

03/14/21

  07:57:00 am, by Jim Jenal - Founder & CEO   , 767 words  
Categories: SCE, Residential Solar

SCE Just Hiked Their Rates - Here's What That Means For You!

While you weren’t watching, SCE - the same SCE that is trying to kill off rooftop solar - just raised their Time-of-Use rates for residential customers. We will break down the increase and show you what it might mean for a couple of potential solar clients.

What are Time-of-Use Rates?

Time-of-Use (or TOU) rates are exactly what they sound like: a rate structure where how much you pay for energy is tied to when you use that energy.  (We wrote a lengthy blog post explaining the differences between TOU rates and Tiered rates, in gory detail!) 

The most common TOU rate for SCE’s residential customers is titled TOU-D, with the 4-9 p.m. window having the highest rates overall.  Compared to a tiered rate -  where your monthly bill is divided into steps based on the volume of energy that you use, with each volumetric step, or tier, bringing you a higher rate - a TOU rate does not increase on volume but on the time of day.  As a result, rates during peak periods can be 50% or more higher than the lowest periods.  Of course, that peak period - either 4-9 or 5-8 with SCE - corresponds to when people generally use the most energy!  Gotcha!!! (Those rate differentials are what provide the economic benefit of adding storage, and make simple strategies - like delaying the dishwasher or EV charging until out of peak rates - effective at saving money.)

How is SCE’s TOU Rate Changing?

Needless to say, SCE’s rates are very complex, with the energy charge being comprised of some eleven different components!  I will spare you those distressing details and just focus on the overall energy charge and how it has changed, as shown in this table:

SCE rate change as of 2/1/2021

SCE’s TOU-D Rate change for the 4-9 p.m. option.

On average, we see that rates here have increased between 3.67 and 3.80% over the prior rate, but there are some special gifts to solar customers buried in the rates.  When the Net Metering rules were changed a few years ago, it introduced the concept of Non-Bypassable Charges (or NBCs) - components of the rate structure that solar customers paid for every killowatt hour pulled from the grid, even if that same kWh was netted back by energy exported to the grid.  Far and away the largest NBC is the Public Purpose Programs charge, and in this rate increase it jumped from 1.323¢/kWh to 1.622¢/kWh - a whopping 22.6% increase! 

Another fun fact for SCE customers who have endured so called public-safety shutdowns, is that they are paying 0.6¢/kWh toward the “wildfire fund charge"!  That’s right, SCE’s customers are helping to pay for an insurance fund against wildfires caused by SCE, PG&E, and SDG&E - now isn’t that almost enough to get one hot enough to, well, burn!

Use Case Impacts

We decided to examine how potential clients would see their bills, and potential savings, change under the new rate structure.  As always, we made use of the wonderful tool Energy Toolbase to do our calculations. 

Average user comparison Our first example is a pretty average user in the Run on Sun service area, consuming approximately 30 kWh of energy per day, pre-solar.  Under the old TOU rate their annual bill pre-solar was $2,946, but under the new rate (including things like utility user taxes, etc.) their bill would go up by nearly 5%, an extra $144 for the year.  However, their post-solar savings also increase, by 5.42% or an extra $143 per year.  For this average user, adding solar ended up being a nearly perfect hedge against the SCE rate increase!

Heavy consumption use caseOur second user does not fare quite as well.  This is a significantly larger user, consuming more than 50 kWh/day.  Their pre-solar bill increases by 4.29%, or $228. Unfortunately, while their overall savings increases, it is not as dramatic as it is for the smaller user, reducing the differential from $228 to $92, compared to reducing it to just $1 for the average user.

Bottom line - adding solar helps hedge against rate increases, and as energy costs get higher, your annual savings will increase!

Meanwhile, SCE is Trying to Kill Rooftop Solar

It is one thing for SCE to be seeking, and getting, rate increases from the CPUC - that is their business model.  It is quite another thing for them to try and gut the value of net metering, thereby eliminating the economic value of adding solar - but that is precisely what they are trying to do!  We are fighting back, starting with a signature campaign targeted at a petition to Governor Newsom

There will be lots more to do in the coming days to fight against SCE’s attack on solar, but for now there is something simple that you can do - mash that button below and go sign the petition!

Sign the Petition!
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02/17/21

  08:47:00 am, by Jim Jenal - Founder & CEO   , 927 words  
Categories: All About Solar Power, SCE, Residential Solar, Ranting, SDG&E, Net Metering

The Battle to Preserve Net Metering is Underway - Time to Fight!

TL;DR - We need your help to preserve net metering - Sign the Petition!

Run on Sun has been installing grid-tied solar power system since 2007, and one constant in all of that time has been the hostility towards such systems evinced by the Investor-Owned Utilities (IOUs): SCE, PG&E and SDG&E. Nowhere is that hostility on clearer display than it has been in their efforts to erode, if not eliminate altogether, net metering.  But now, with the IOUs lobbying for the creation of Net Metering 3.0, the battle for the survival of net metering is about to be joined in earnest.  If your right to put solar on your home or business is to be preserved, we are going to need all of you to join the fight.  Here’s our take…

What is Net Metering?

Net Energy Metering (NEM) or just net metering for short, is the basis by which a solar system provides the owner with a significant portion of their financial benefit.  Solar systems on a clear, sunny day produce energy that follows a normal distribution, with the peak energy production occurring around solar noon, and rolling off in a typical “bell curve” on either side.  That energy saves the system owner money twice: first, by directly offsetting the energy usage of the home or business, but secondly, by allowing the excess energy to be exported back to the grid for retail credit.  That retail credit is then applied against energy imported from the grid to power loads at night or on cloudy days.  At the end of the billing cycle, those two values - the amount of energy imported versus the amount of energy exported - are “netted” out, and if the amount imported is greater than what was exported, the difference is charged to the customer.  Conversely, if more energy is exported than imported, the customer has a credit for that period that can be carried forward.

Of course, the energy exported to the grid for which the net metering customer gets credit doesn’t disappear - the utility sells it to another customer for that full retail value.  Moreover, because that energy did not have to be transported from far-off generation facilities, there is less demand to build expensive infrastructure like high-voltage transmission lines - you know, like the lines that have sparked deadly wildfires in the past few years.

So you might think that net metering would be a win-win for everyone - solar clients get a greater financial incentive to foot the bill for installing energy generation systems and the utility gets additional energy without incurring the costs of building or maintaining them.  But you would be wrong.  You see, IOUs don’t make money selling energy.  They make money building things.  In fact, in a stunningly perverse incentive structure, the IOUs get a guaranteed return on investment of 10% for every dollar they spend building stuff: generation plants, transmission lines, etc.  So they see the growth of solar, particularly rooftop solar, as a threat to their antiquated business model, and the best tool at their disposal is to take as big a bite out of net metering as possible.

Where are We Today and Where are the IOUs Trying to Go?

The version of net metering described above actually no longer exists with the IOUs, instead, they transitioned to NEM 2.0 a few years ago.  (Municipal utilities, like PWP, still offer full net metering.)  Under that scheme, a one-time interconnection charge was created, along with what are known as Nonbypassable Charges, which require their customer to pay a relatively small amount for every kilowatt hour of energy imported, even if that energy is actually offset by exported production.  The real kicker was that all solar customers in IOU territory were switched to Time-of-Use rates that made the value of exported solar lower, and energy imported from 4-9 significantly more expensive.

But now, heading into NEM 3.0, the IOUs are going all in!  A recent report by the consulting firm E3 was released by the CPUC and it highlights some options for changing net metering that would seriously impact the value of solar.  In particular, the report proposes fixed monthly charges of between $50 and $70 for all solar customers, combined with a “grid access charge” each month of between $5-$7/kW installed!  That means that under the best case scenario of their proposals, a residential customer with a 4 kW solar system installed would pay an extra $70 per month, every month, just because they have solar - that they paid for - on their home!  That is an $840/year penalty for going green! 

If that doesn’t make you see red, nothing will!

We’re Not Gonna Take It!

To say that the California solar industry is in the fight of its life is an understatement.  But so are all solar customers, who could see the value of their investment greatly eroded by these misguided policy proposals.  And that is where you come in.  We are fighting back and we need you in the fight!  The California Solar and Storage Association (CALSSA - our trade association) and the Solar Rights Alliance are gearing up to organize against the threat.  The first step is in signing a petition to Governor Newsom - we need him as an ally now.  It is super easy to sign on and we are looking to collect 20,000 signatures before April 1.  As of this writing, we are at 923 supporters, so we have a long way to go - and that starts with you!  (We will have more news on ways to fight back in the coming weeks, so watch this space.) 

Please click the big button below and let’s get this done!

Sign the Petition!

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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