Customers that have invested in solar under NEM 1.0 and 2.0 may be forced into a regulatory scheme that would threaten their return on investment, based on guidance from the California Public Advoc…
Could easily just charge separate lines on the bill, just like they do for everything else.
1 - $0.0x c/KWh for line maintenance - this charges on both incoming and outgoing power.
2 - $0.xx c/KWh for power usage - this charges only on the incoming side.
3 - $xx flat fee every month for administration of your account.
Charge what things cost and it won’t matter how your use your energy.
I agree – that decoupling of fees is what’s happening and is what the article is complaining about.
EDIT: I’d also add I kind of feel like this pattern is turning into something of a chronic problem for California. The same sort of thing happened with EVs getting to ignore carpool rules.
California tells people that if they buy an EV, they can ignore carpool rules and use the carpool lane without carpooling. Advocates get this past voters by billing it as being “green”.
EV companies sell a relatively-costly product, implying that the policy will continue ad-infinitum. They can charge a premium because they’re giving special road access bundled with the vehicle. This is lucrative for EV manufacturers.
Well-to-do people do the math and figure out that while the car costs more, it’s a pretty cheap deal for your own road. They buy the car.
California announces that the policy is going to expire. People who paid more and had an expectation of never-ending special road access are angry.
There are over 400,000 drivers in California who currently have decals - many of them bought their clean air vehicle to speed up their commute so losing that privilege is a big deal.
A Tesla driver says, " It is frustrating. Like I said the main reason for the decision is driving in Bay Area traffic."
The carpool lanes were very under utilized. Hybrids and later EVs were also slow to be adopted, and the state wanted this adoption accelerated due to air quality and just general environmental consciousness.
So the state decided to add the carpool benefit, which solved two problems.
Now that EVs are far more abundant, that policy is getting revisited. Which is fair, because the carpool lane can only support so many before it just gets clogged like the main road. And people don’t necessarily need the encouragement to get EVs anymore.
I’m in the Great Republic of Texistan, and that split billing is how it works here: I pay the power delivery people $x+($0.0xkwh), and then the power generator $0.0xkwh.
The screw-you happens because the power buy back from the power company is a percentage of what I pay the REP (power company). So I get something like 85% of half the cost of a KWH back for every KWH I put back on the grid, and pay full sticker price for anything I import.
Solar is a piss-poor worthless investment here, simply because power isn’t expensive enough, and the payback for surplus isn’t even a McDouble at this point. Average monthly credit tends to be under $20 on a ~$130 bill. Better than nothing but the solar generation + buyback won’t ever pay for the panels before they’re EOL. Nevermind if I had spent $15k on batteries to go with it.
It’d be a shame to see that happen in other places that have historically done much better simply because of unsustainable costs due to well, greed and incompetence.
California announces that the policy is going to expire. People who paid more and had an expectation of never-ending special road access are angry.
This is the step where your comparison to solar (at least in California) breaks down. I’m not a California resident, but from what I understand under the NEM 1 and NEM 2 rules there is NO expectation the preferential net metering will last forever. Solar customers were specifically told that putting in solar during NEM 1 would guarantee those terms for 20 years from install date. Same thing for NEM 2, the rules would apply for 20 years from the install date. After the 20 year period, you’d be subject to whatever net meter would be offered to new customers, which could be none. source
What this proposition proposes is cutting that 20 years to 10 years from install date:
"Convert NEM 1.0 and 2.0 accounts to the NBT either upon sale of a home or after 10 years of interconnection. " source
So customers that took a large financial risk installing solar that are coming out ahead may now have the deal shifted out of their favor. How is that fair to the solar customers? Worse, the knock on effect will destroy the trust in state government incentives in the future. Why would any citizen risk a long term outlay based on policy if the state government may decide one day they don’t want to hold up their end of the deal anymore?
For pge the distribution fees are 5x the actual generation fees, because while you can get power from other companies, pge owns all the lines and milks them dry.
Could easily just charge separate lines on the bill, just like they do for everything else.
1 - $0.0x c/KWh for line maintenance - this charges on both incoming and outgoing power.
2 - $0.xx c/KWh for power usage - this charges only on the incoming side.
3 - $xx flat fee every month for administration of your account.
Charge what things cost and it won’t matter how your use your energy.
edit: formatting
I agree – that decoupling of fees is what’s happening and is what the article is complaining about.
EDIT: I’d also add I kind of feel like this pattern is turning into something of a chronic problem for California. The same sort of thing happened with EVs getting to ignore carpool rules.
California tells people that if they buy an EV, they can ignore carpool rules and use the carpool lane without carpooling. Advocates get this past voters by billing it as being “green”.
EV companies sell a relatively-costly product, implying that the policy will continue ad-infinitum. They can charge a premium because they’re giving special road access bundled with the vehicle. This is lucrative for EV manufacturers.
Well-to-do people do the math and figure out that while the car costs more, it’s a pretty cheap deal for your own road. They buy the car.
California announces that the policy is going to expire. People who paid more and had an expectation of never-ending special road access are angry.
https://abc7news.com/california-clean-air-vehicle-decals-for-carpool-lane-access-likely-expiring-2025/14604142/
That’s a pretty weird rant on EVs.
The carpool lanes were very under utilized. Hybrids and later EVs were also slow to be adopted, and the state wanted this adoption accelerated due to air quality and just general environmental consciousness.
So the state decided to add the carpool benefit, which solved two problems.
Now that EVs are far more abundant, that policy is getting revisited. Which is fair, because the carpool lane can only support so many before it just gets clogged like the main road. And people don’t necessarily need the encouragement to get EVs anymore.
Nothing is permanent.
And they 100% should.
I’m in the Great Republic of Texistan, and that split billing is how it works here: I pay the power delivery people $x+($0.0xkwh), and then the power generator $0.0xkwh.
The screw-you happens because the power buy back from the power company is a percentage of what I pay the REP (power company). So I get something like 85% of half the cost of a KWH back for every KWH I put back on the grid, and pay full sticker price for anything I import.
Solar is a piss-poor worthless investment here, simply because power isn’t expensive enough, and the payback for surplus isn’t even a McDouble at this point. Average monthly credit tends to be under $20 on a ~$130 bill. Better than nothing but the solar generation + buyback won’t ever pay for the panels before they’re EOL. Nevermind if I had spent $15k on batteries to go with it.
It’d be a shame to see that happen in other places that have historically done much better simply because of unsustainable costs due to well, greed and incompetence.
Depends on where you live in Texas. My solar panels cut my summer bill in half, and my winter bill is usually zero.
If my power company didn’t pay me a decent buyback amount, I’d invest in an enphase battery and offset the cost of running appliances at night.
This is the step where your comparison to solar (at least in California) breaks down. I’m not a California resident, but from what I understand under the NEM 1 and NEM 2 rules there is NO expectation the preferential net metering will last forever. Solar customers were specifically told that putting in solar during NEM 1 would guarantee those terms for 20 years from install date. Same thing for NEM 2, the rules would apply for 20 years from the install date. After the 20 year period, you’d be subject to whatever net meter would be offered to new customers, which could be none. source
What this proposition proposes is cutting that 20 years to 10 years from install date:
"Convert NEM 1.0 and 2.0 accounts to the NBT either upon sale of a home or after 10 years of interconnection. " source
So customers that took a large financial risk installing solar that are coming out ahead may now have the deal shifted out of their favor. How is that fair to the solar customers? Worse, the knock on effect will destroy the trust in state government incentives in the future. Why would any citizen risk a long term outlay based on policy if the state government may decide one day they don’t want to hold up their end of the deal anymore?
They do that now.
For pge the distribution fees are 5x the actual generation fees, because while you can get power from other companies, pge owns all the lines and milks them dry.