top of page

Are Solar stocks directly reacting to California's New Solar Net Billing Tariff (NBT/NEM3)?

Writer's picture: pinny shisgalpinny shisgal

04.28.2023


The California Public Utilities Commission (CPUC) decided on Dec 2022, against overwhelming public opposition, to change Net metering in California (NEM 2.0) to a new Net Billing Tariff (NBT), Enacted on April 15 only for New Customers.

This new policy pays consumers for Stored Energy on the grid based on the Value to the grid, not 1 for 1 as currently in Florida and 32 more states, literally using the grid as a backup battery.

4 more states are following California in similar policy changes.

This is expected to reduce the Value of Solar credits for New Customers by 75% for rooftop Solar customers.

This will obviously hurt the Solar industry in those states very hard.

At the same time, it will Encourage/Force customers to include Battery storage in their new systems and avoid or reduce the need to sell Energy to the grid at a loss.

This will be increasing the Average system prices.

It is expected that 71% of systems now will include Batteries, vs 19% previously, However, the number of systems is expected to decline.

In 2019 The California Energy Commission (CEC) enforced a new policy requiring all Commercial and Multi-family homes to go Solar in 2020, as well as New Residential Homes and major renovations, with some exemptions.

Furthermore, in 2022, the CEC enforced a new Policy requiring Battery storage to be included in any mandatory Solar system.

So, in California, you must install Solar + Battery storage on New Homes, Major renovations to old homes, Commercial buildings, and Multi-family homes, and 75% less Value will be granted for Solar credits from the excess energy produced and stored on the grid on top of Battery capacity.

As the Net metering policy is canceled in those states, it is usually grandfathers in for previous customers, where anyone who installed before the bill is implemented, gets to keep net metering for 20 years, including upgrades and limited expansion.





8 views0 comments

Recent Posts

See All

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page