New Net Metering Policy in Southern California Takes Effect on July 1st

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Many new solar customers are rushing to take advantage of the existing solar rates before a new, more expensive solar plan goes into effect.

Net Metering 1.0 is expected to reach its cap this year, by July 1st, meaning that homeowners considering committing to solar power must get their solar panels installed to be grandfathered in on the current plan. Under Net Metering 1.0, customers pay only the “net” difference between the electricity they use and the power their rooftop panels generate.

Under Net Metering 2.0, however, customers going solar after July 1st will pay new fees and receive fewer energy credits for the excess of power their panels generate. Once a system is purchased under a new order, industry officials say that the cost for an average solar customer will be around $10 to $13 a month higher or $4,000 more over the 25-year life of a typical system.

Key changes for new solar customers under net metering 2.0 include:

  • A one-time connection fee of $75 for residential customers.
  • “Non-bypassable fees” – which support public-purpose programs like bill assistance for low-income residents or energy efficient subsidies – will be attached to bills, costing about two cents per kilowatt hour.
  • A cap which limits net metering to systems generating less than one megawatt will be eradicated. Thus, commercial users can go solar and sell power to the grid as well, with a connection fee for systems that generate over a megawatt will be $800.
  • Charges and credits will depend on time of use. These costs are higher for power during peak periods (2 PM to 8 PM on weekdays), with lower costs for power during “off-peak” or “super off-peak” hours (often mornings, late nights, and weekends).

These net metering changes correlate with a new high usage fee instituted by several California electricity companies. The 2017 high usage surcharge comes after historic rate increases in 2016.

For homeowners who are interested in solar installation in California, now is the time to go solar, reduce your energy bills, avoid rate increases, and take advantage of current solar incentives. Sea Bright Solar is committed to helping you obtain your solar energy goals and get you signed up for the best plan available that suits your personal energy needs.

For more information, contact our California solar company at Sea Bright Solar by calling (732) 253-4052 today.

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