Increase in Solar Net Metering Credits in California

Solar net metering in California just got a big boost for consumers

If you are interested in, or have solar panels on your home or business, you probably know about net metering.  The concept is generally that any excess solar electricity that is generated by your panels can be sent back into the grid.  Your utility will then give you a credit against any draw you make from the grid overnight or during exceptionally high electricity demands.

Utilities are not always keen to “give away,” their product, however.  Usually you will find a cap on the amount of solar net metering credits that can be given to consumers.  Last week, the California Legislature raised the cap by double -  from 2.5% to 5%.  Governor Schwarzenegger, a big solar proponent in the Golden State is expected to sign the bill into law.  Its one of several new solar laws passed recently.

More incentive for Californians to install solar panels

The bill was passed in response to worry that the existing 2.5% cap would discourage new solar users, and thwart the state’s overall ambitious goal that requires 33% of the state’s energy to from renewable sources by 2030.  Bernadette Del Chiaro of Environment California commented of the new measure:

“It makes solar power affordable for people.  You couldn’t do that if you lost all that electricity.”

The primary downside to the new solar net metering credit increase bill is that solar electricity that is purchased by utilities from customers does not count toward state renewable energy mandates… unless the utility pays the customer a surcharge.  If that was to happen, utilities would simply increase rates for other customers to cover the additional costs.

Perhaps the next time the California Legislature takes up issues related to net metering and its renewable energy mandates it will continue to encourage, rather than dampen, desire for solar energy across the board.

Tags: california law solar, california renewable energy mandates, california solar energy, excess solar electricity, net metering, new solar laws, solar net metering