Net metering cost shift in California could reach $5 billion annually, estimates say

April 28, 2016

The cost shift created by California’s recently approved net metering policy could rise to $5 billion annually for non-solar customers, according to a public tool created for the state’s Public Utilities Commission.

California regulators in January passed a successor net metering policy, known as NEM 2.0. This policy maintained net metering credit for excess energy produced by rooftop solar systems at the full retail rate until 2019.

Under models developed to determine the impact of NEM 2.0, the annual cost shift on non-solar customers is estimated to be $3 billion-$5 billion.

The findings were presented by consulting firm Energy+Environmental Economics (E3), which created the public tool, to energy officials at a Western Interstate Energy Board meeting April 26.

Nevada Public Utilities Commission chairman Paul Thomsen tweeted his reaction from the meeting:

Nevada took action in December to reform its net metering policy, including ending the retail credit and changing rates for NV Energy customers with rooftop solar.