More solar restrictions as utility rates get another record hike
Utility rates are set to continue their record increases in 2024 and beyond.
After rising 45.9% between 2020-2023 in California, utilities are counting on another 45% in the next three to four years too.
You could ask yourself "where will it stop?" but the answer is not there. On top of those high and rising bills, the California Public Utilities Commission approved a move from the investor-owned utilities to limit new solar projects to offset the energy and costs from only one meter at a time.
Those businesses with more than one meter, therefore, now have their best option of cutting electricity record costs taken out at the knees.
So, it boils down to two questions:
1. Does your facility have more than one electric meter?
If so, it's time to explore options. In most cases, these changes to the Virtual Net Energy Metering (VNEM) regulations would mean a steep drop in the amount of energy usage you will be allowed to offset with solar, meaning far lower cost savings.
These changes to the Virtual Net Energy Metering (VNEM) and Net Energy Metering Aggregation (NEMA) regulations were passed by the CPUC in November and will come into effect on February 14, 2024.
2. How long does your budget account for continued record utility rate increases?
While utility rates have increased at record rates since 2020, increasing by 45.9% on average, more budget-busting hikes are on the way:
PG&E rates will increase by a further 12.8%. By 2026, these rate increases will stand at 45%!
SCE: A 9% increase is scheduled in 2024, with additional hikes accumulating to 45% over today's rates by 2028.
SDG&E: A 17.6% increase is scheduled for 2024! A 52.9% increase by 2027! And all on top of an astonishing 104% rate increase since 2020!
What are we going to do about it?
As costs continue to sky-rocket, solar is the simplest way to reduce those bills. But now with the changes to Virtual Net Energy Metering, that means moving fast.
We'd want to get things in place by January 5, 2024 in order to have enough time to submit the application well in advance of the utilities' February 14 deadline.
We went through this last year with the switch from NEM 2.0 to NEM 3.0 when utilities slashed the credits businesses were paid for its excess solar generated energy. Last year, the rush led to a bottleneck and we want to avoid that this time around, so our advice is move fast.
Call to Action:
Call us. Send us a bill. Schedule a quick 20 minutes to talk. Whatever is easiest for you, just don't let the moment pass because it's money out of the window after February 14.
Remember the average pay-back period is 2-3 years on a solar system thanks to large tax incentives and deep utility cost savings on today's prices!
Schedule a time to talk today!