September 14, 2009

Sacramento, CA, USA: California Solar Net Metering Bill Stalls

The 2009 California legislative session ended on Friday without passing AB 560 (Skinner), a bill that would have allowed solar energy customers to continue benefiting 'net energy metering'.

Existing law requires California's major electric utilities to make net metering available to customers until the total program capacity exceeds 2.5% of the utility's peak demand. AB 560 would have doubled the net metering program capacity to 5%. Without AB 560, parts of California, most notably in PG&E territory, are expected to receive enough applications to hit the current cap program as early as 2010 according to estimates from solar advocacy groups. Once applications reach that cap, potential customers will have no certainty as to whether they will be able to offset their electricity bills by going solar.

Today nearly 50,000 homeowners and hundreds of businesses rely on California's net metering program to reduce their electric bills.

"Net metering means two things: it means energy bill savings when a consumer goes solar, and it means local green jobs. It is not an optional policy if California wants to continue building a new energy economy. We saw the state's rooftop solar market double in size last year alone. The looming net metering cap would likely stamp the brakes on further growth early next year. That's a lot of jobs, savings and environmental benefits at risk at a time when California frankly can not afford it, "said Sara Birmingham, director of Western Solar Policy for the Alliance. "Stakeholders must work together to get net metering back on track as soon as possible. "

Despite widespread support, the bill's progress was slowed in the final days of the 2009 legislative session by the late introduction of an amendment on the ancillary contractor certification issues which CA produced a conflict between labor groups. With labor interests on both sides of the issue, time ran out on the legislation, and now thousands of jobs are at risk.

"Thanks to strong leadership and hard work from assembly Skinner Woman and her staff, this bill enjoyed widespread support across at incredibly diverse group of stakeholders. California cities, schools, utilities, utility regulators, environmental groups, brick-and-mortar retailers, home builders, solar energy businesses, and thousands of energy consumers all supported raising the net metering cap to 5%. The fact that a tangential issue derailed one of California's most critical solar programs is unfortunate to say the least," said Adam Browning, executive director of the Vote Solar Initiative.

"If we can not assure a potential customer that they will be able to receive credit when their electricity output Exceeds their needs, it will dramatically reduce solar installations in California. Period," said David Arfin, Vice President of Strategy of SolarCity, a Foster City-based solar installer.

"The victims here are prospective solar customers and the green collar workers," said Arfin. "Going forward, the choices are strong. Either we get this right in a special session of the legislature or the first days of next session in January, or the country's largest, most robust solar market is at risk, "said Browning.

Net metering has no direct impact on the state's general fund. In fact, California It allows schools and public agencies to reduce operating costs by investing in solar energy. California public agencies have already installed at least 51 MW of solar, saving taxpayers more than $ 270 million in avoided utility payments. With federal stimulus funds committed to support the state's switch to solar, this legislation is a critical component of a fiscally and environmentally responsible energy future in California.

Further details: Vote Solar and Solar Alliance