With net metering secure, California solar now faces uncertainly from time-of-use changes

In 2016, California’s solar industry celebrated its win on preserving net metering. This year, the industry gets hit by the other side of the equation – time-of-use rates. In the next few months, California’s big three utilities will be filing general rate cases that shift the hourly schedule of on-peak and off-peak hours, and the widely varying retail prices per kilowatt-hour that go with them, into much later in the day.

According to the solar industry, the resulting drop in the value of net-metered onsite solar for future solar projects will be considerable. It could amount to 15% to 20% for San Diego residential systems, or 20% to 40% for public agencies looking to go solar in Pacific Gas & Electric territory.

Longer-term forecasting is a complex issue. The actual per-kilowatt-hour prices for the new hourly structure have not yet been set. This will be decided in the general rate cases (GRCs) rolling out during the year. San Diego Gas & Electric has its GRC already underway, and is set to close it in the third-quarter. Pacific Gas & Electric is set to close by the end of the year. Southern California Edison will close its rate-design case also by the end of 2017, but does not conclude its GRC until 2018.

For more information on net metering and time-of-use changes in California, see full article.