California Utilities Balk as Home Solar Producers Near 5 Percent Limit [View all]

[jpak]

http://cleantechnica.com/2012/05/02/california-utilities-balk-as-home-solar-producers-near-5-percent-limit/

California solar produced on rooftops is about to breach the next limit of 5 percent of aggregate customer peak demand. The effect could be to sunset the incredible growth of distributed solar rooftop power in the state, as utility payments are ended for future rooftop solar production.

Why is there a limt? Because utilities in California must pay homeowners who generate clean power for the grid. “Net metering” gives solar customers fair credit on their utility bills for the power they generate. There is a five percent cap on the amount of net metering that utilities must make available to customers. That limit was already raised once a couple of years ago, from about half that amount.

The state regulators at the CPUC have proposed closing that loophole and requiring utilities to calculate net metering participation in a way that permits more participation by more customers. Once there is more than five percent provided there’s no guarantee that utilities will continue to credit new solar customers for their contribution to cleaning the grid with their rooftop solar.

Most solar in California – like most urban states – is on grid: that is, the grid is the battery. Everyone who puts solar on their roof contributes to the grid, and is credited for their contribution, and takes from the grid, for example, at night, and is debited for that. It’s like rollover minutes for solar.

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