NEM 2.0 : Proposed Decision Delayed

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by Tom Williard, Principal - Sage Renewables

Update: On December 15, 2015, the CPUC released a Proposed Decision (PD) for NEM 2.0 that leaves NEM 1.0 largely intact. Read more...

As of November 18, 2015, the CPUC has not issued a Proposed Decision (PD) in the Net Energy Metering successor tariff (NEM 2.0) proceeding. We now expect a PD to be issued on December 15, 2015. 

In AB 327 (2013 Perea), the California legislature tasked the CPUC to propose and implement changes to the current NEM regulations. The CPUC was to complete this process by the end of 2015. In order to meet that schedule, the CPUC would need to make a ruling on the proposed NEM 2.0 changes at its December 17th meeting at the latest. Since the CPUC is required to issue a PD 30 days prior to issuing a final decision, a PD must have been issued on or before November 17. Since no PD was issued by that date, the decision will be delayed at least until the next Commission meeting on January 14, 2016. To make a final decision at that meeting, a PD would need to be issued on or before December 15, 2015.

Unfortunately, there is still no clarity on what the CPUC might propose. Negotiations are still very active. The continuing lack of resolution to this issue leaves those considering installing PV systems in 2016 and beyond with considerable uncertainty concerning the value of energy produced by PV systems in the future. At Sage, we continue to address this uncertainty by making conservative assumptions regarding the value of generated energy, which can call into question the economic viability of projects. 

Keep this page bookmarked  - we will publish any new information regarding NEM 2.0 right here as it becomes available. If you have questions regarding this or other renewable energy project issues, you can contact us at thesage@sagerenew.com.

Further Reading

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Sage's Tom Williard breaks down the CPUC's recent Net Energy Metering (NEM) 2.0 decision for California solar customers, noting what issues remain unresolved after this significant victory for renewables.

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NEM 2.0 Final Decision A Big Win For California Solar
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