CPUC Lowers NBT Export Rates Even Further, Starting Next Year
August 6, 2024 |
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Just when you thought the NEM 3 decision couldn't get worse, it just did. (And as if the tragic loss of industry giant, SunPower, wasn't enough to make the Newsom Administration realize they've gone too far.) Also add to the Newsom list leaving Tesla, Chevron, and my old company Hewlett Packard. Goin to Texas! Your thoughts Bill! -- Dave
The CPUC has just finalized an update to the Avoided Cost Calculator. It results in lower average export rates and diminishes the high value hours. It will apply to systems that submit initial interconnection applications in 2025 and 2026. Existing systems will remain on the previous ACC export rates for nine years.
CALSSA has summarized the new hourly export rates in a spreadsheet you can find in the members-only section of our website under NBT/NEM Resources > Export Rates > NBT Export Rates for 2025 & 2026 Systems. You can also see in the graphics below that the weighted annual average export rates have gone down.
It is clear that California policy makers are not looking for solutions to the damage they caused with the extreme and abrupt shift to the net billing tariff (NBT). At best, they are living under the delusions that the customer-sited solar industry will do business no matter what and that large-scale resources will be buildable at any scale needed to meet all our goals.
CALSSA continues to push back on the larger narrative, countering the cost shift slander and demonstrating how important we are to the California energy landscape. We will also continue to be vigilant in our efforts to stop any kind of a tax or limit on solar self-consumption.
As one example of how fraudulent the ACC is, it assumes that runaway utility spending is unstoppable in the next five years, which produces a value of solar shown in the red box below. In the long run it recognizes that more customer solar equals less utility spending, but it does not include that value in the calculation of NBT export rates.
It is clear that we need to focus on the value of self-generation in our business outlook. Even the silver lining of the September 6-8 pm high value hours will not be there for customers submitting applications next year. CALSSA will continue to push for aggregation programs that can add value on top of self-generation, and we will fight the further attacks on our market that are not going away.
Please be clear that customers already installed under NBT or with applications submitted by the end of this year will get the export rates from the previous version of the ACC for nine years. Starting in the tenth year they will be switched to export rates derived from the version of the ACC that is in effect at that time.
See the exact rates in CALSSA's spreadsheet which you can find in the members-only section of our website under NBT/NEM Export Rates, and let us know what questions you have.
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