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Tom Blair, CEM Energy Administrator

Net Metering and Other Applicable Tariffs. Public Utilities Code 2827 (b) (3) defines net metering requires a single meter measuring electricity flow in two directions to provide information to bill or credit customer net metering calculation shall yield result identical to single meter if addit

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Tom Blair, CEM Energy Administrator

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    2. Net Metering and Other Applicable Tariffs Public Utilities Code 2827 (b) (3) defines net metering requires a single meter measuring electricity flow in two directions to provide information to bill or credit customer net metering calculation shall yield result identical to single meter if additional meters installed PUC 2827 (h) indicates net kW hours generated shall be valued at the same price as electricity service provider would charge for baseline quantity of electricity TOU customers net kW hours produced shall be valued at the same price as the electric service provider would charge for retail kWh sales during that period.

    3. California Solar Initiative PV systems < 100kW Lump sum Expected Performance Based Buydown incentives based upon expected system performance. Incentive rate begins at $2.50/W and at $3.25/W for government and non-profit entities unable to take advantage of tax credits. PV systems > 100kW Performance Based Incentives paid monthly based on the actual energy produced for period of five years. Incentive rate begins at $0.39/kWhr and at $0.50/kWh for government and non-profit entities.

    4. Rate Components for Solar Generators Residential “DR” Rate and Small Commercial “A” Rate Components (analog meters): EECC + A + NEM Large TOU Commercial Rate Components: EECC + ALTOU (Includes Non Coincident Demand and Time Demand) + NEM

    5. Price Signals for Self Generation Solar Power Produces Energy In Daytime Hours When Grid Has The Greatest Need SDG&E Rate Design Sends the Wrong Price Signals to the Market for Self Generators. This is being addressed in the General Rate Case Demand Components of Rates Act as “Fixed Costs” Raising the Per kWh Cost of Solar Sites Significantly Higher than Retail Cost for Other Non-Solar Sites

    6. Use Less Power – Pay Less One Expects a Lower Energy Bill When Buying Less Power – True for “A” and “DR” Rates

    7. Small Commercial Effective Rate Per KW Hour

    8. Demand Components And Off Peak Consumption

    9. Pending Impacts to Residential Solar Systems Advance Metering Will Put Residents on Time-Of-Use Rates with Demand Charges Homes with Solar Systems May Consume Less Energy Than Neighbors, But Pay More per Kilowatt Hour Due to Design of Rates

    10. Conclusion Current Rate Structures Penalize Solar Power Generators on TOU Rates. New rate is pending. TOU and PA Rates Do Not Credit Demand Charges for Each kWh Generated Solar Sites Experience Higher average Per Unit Costs for Electricity Recent Changes in Incentives Along with Tariff Application Results in Longer Paybacks and Lower Cost Effectiveness for Solar Projects

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