Maintaining California’s Solar Market: Getting the Details Right

Bernadette Del ChiaroExecutive Director, CALSEIA

2014: 3 GW PV in California, plus another 3 GW nationally

Solar Water Heating installed 618 systems saving 550,000 therms, enough to supply energy needs of 1,200 homes for 20 years

54,000 Solar Jobs in CA

More than PG&E, So Cal Edison, Sempra, LADWP & SMUD combined

The Details that Matter Most

Rates, Bills & NEM 2.0 Soft Costs

ITC

50% RPS & Carbon Cap

Utility Incentives

Key Rate Issues

Tiered Rates

Time of Use Rates

Fixed Charge and

Minimum Bill

2001 Rates

Tier 1 Tier 2 Tier 3 Tier 4 Tier 50

5

10

15

20

25

30

35

40

45

50

PG&ESCESDG&E

Cent

s/kW

h

2002 Rates

Tier 1 Tier 2 Tier 3 Tier 4 Tier 50

5

10

15

20

25

30

35

40

45

50

PG&ESCESDG&E

Cent

s/kW

h

2007 Rates

Tier 1 Tier 2 Tier 3 Tier 4 Tier 50

5

10

15

20

25

30

35

40

45

50

PG&ESCESDG&E

Cent

s/kW

h

2013 Rates

Tier 1 Tier 2 Tier 3 Tier 4 Tier 50

5

10

15

20

25

30

35

40

45

50

PG&ESCESDG&E

Cent

s/kW

h

2013 Rates

Tier 1 Tier 2 Tier 3 Tier 4 Tier 50

5

10

15

20

25

30

35

40

45

50

PG&ESCESDG&E

Cent

s/kW

h

2.7:1

Rate Changes Hot off the Press

• 2015 rate structure will begin in November. Significant “haircut”.

• 3-tiered structure in 2019. Incremental transition between now and then

• Super User Electricity (SUE) Surcharge• A third tier that is labeled as a surcharge to indicate it is a penalty

for usage beyond normal levels. • Only 2%-10% of customers will reach SUE tier

• $10 minimum bill in November, not fixed charge (2018 revisited)

• Default TOU in 2018

PG&E Current Tiered Rates

85169

254338

423508

592677

761846

9311015

11001184

12691354

14381523

16071692

17771861

19462030

0

5

10

15

20

25

30

35

40

kWh

Cent

s/kW

h

27¢

33¢

16¢

PG&E 2019 Tier Differential

85169

254338

423508

592677

761846

9311015

11001184

12691354

14381523

16071692

17771861

19462030

0

0.5

1

1.5

2

2.5

23 ¢

40.7 ¢

18 ¢

NEM 2.0• NEM 2.0 proposals submitted Aug 3rd. Decision in Dec.

• IOU proposals match Salt River Project NEM tariff which greatly damaged the market.

50% RPS & Carbon Cap

• Governor called for 50% RPS. Legislature committed. SB 350 expected to pass.

• SB 32 would reset California’s mandatory carbon cap to 40% below 1990 by 2030; 80% by 2050. Measure put on hold until 2016.

Utility Incentive Programs

• AB 1470 nearing its end. Depressed natural gas prices continue to dog market. Promise in commercial sector.

• Municipal utility programs continue to lag behind rest of state.

• Federal EPA Clean Power Plan floor. California going well beyond.

Lowering Soft Costs

• AB 2188 Permit Streamlining Mandate

• Interconnection • All on-line now• Aggregate NEM

• Codes & Standards

ITC: A Fighting Chance

Long shot and heavy lift

Need local and bipartisan support to get anywhere in Congress.

CA home to influential Rs

Contact Info

Bernadette Del Chiarobernadette@calseia.org916-228=4567CALSEIA.ORG

JOIN CALSEIAwww.calseia.org/join