Proposed changes to California’s net-metering program, the process by which the utility credits a customer’s bill for exporting excess solar production to the grid, is expected to harshly erode the value of rooftop residential solar without the aid of battery energy storage.
Payments to customers for their excess energy could be reduced by as much as 80%, reports the California Solar and Storage Association (CALSSA). Customers of PG&E, who normally would be paid about $0.224/kWh, would now be paid an estimated $0.049/kWh. Homeowners with solar attached to the grid could also face monthly charges as high as $75 a month. Bloomberg NEF estimates the change would extend battery-less solar system payback periods to 11 years, up from six to eight years.
Commercial customers would be charged “grid benefits charges”, monthly charges based on size of system. For example, in PG&E territory, a 750 kW system would pay $5,595 a month, and an agricultural systems sized at 500 kW would pay $4,805 a month.
Bloomberg NEF’s forecast for solar installations in the state would shrink if the currently-proposed rule passes, even if the federal solar tax credit is extended another ten years.
