Now the CPUC extended this tripling of the payback time to small solar systems that have multiple meters on their single property. Few people would install a solar system that is guaranteed to take around 15 years to payback the initial investment. These solar system users are part of the Virtual Net Energy Metering (VNEM) and Net Energy Aggregation (NEA) programs which were set up to extent solar to many more potential users.

Effected by this CPUC decision are small businesses in a business complex such as a strip mall, as well as schools and farmers. This decision by the CPUC seems to reduce the solar potential in California and will directly impact our goal of transition to 100% renewables by 2045. The only perceivable winner in this decision are the private monopoly utility companies who pay rooftop solar owners about 5 cents/kWh for excess electricity shipped to the grid while charging customers over 30 cents/kWh for that electricity.

It should be noted at just prior to adopting this ruling, apartment buildings were excluded but it would not apply the common areas such has hallways, gyms, outdoor areas and EV charging stations. The electricity of most of these demands outside individual apartments are usually paid for by the building owner. If building owners are not motivated to install solar in the complex, individual tenants cannot benefit from solar either. So the CPUC is essentially excluding almost all multi-meter customers from having access to reasonably priced solar. This putting the brakes on solar use by multiple meter solar properties including apartment dwellers, flies in the face of the CPUC justification for the change-over to the Net Energy Tariff approach because the prior NEM scheme excluded poorer customers.

The CPUC says one of its main goals in the recent decisions to make roof top solar more expensive, it is force customers to install battery storage to increase grid stability. Small house sized storage is about the most expensive way to increase grid stability as we approach our state goal of 100% zero carbon sources electricity. Larger utility scale storage is certainly more economic including auto battery units that are no longer suitable for transportation applications and can be repurposed. Car-to-grid access to utility storage is a large resource to provide grid stability.

Simple things like smart inverters on the user side of the meter and grid forming inverters will also increase grid stability. Season storage will likely be achieved by generating hydrogen from excess renewables and used via fuel cells or gas power plants. Policy that encourages these more cost-effective hour to days to months energy storage makes a great deal more sense than forcing home owners to buy expensive small unit storage.

That last few percent of grid electricity is currently generated by capital cheap gas peakers. This is expensive electricity but it is only needed for about 100 hours a year. The future 100% non-carbon renewable energy grid of the future ( ~ 2045) will likely need a similar solution for that last few percent. Peaker power plants can be run on renewable fuels such as ethanol from non-food biomass or gases like methane from biomass or hydrogen from excess renewable electricity. Some of today’s solutions to maintain grid reliability will still apply in the sustainable future.