The California Public Utilities Commission (CPUC) has made a crucial decision, voting unanimously to revise the state's solar energy programs and create a new net billing successor tariff. This affects the Virtual Net Energy Metering (VNEM) and Net Energy Metering Aggregation (NEMA) programs. Here's what this means for shared real estate owners:
Together with other stakeholders, Ivy Energy has played a pivotal role in influencing the CPUC NEM 3.0 proceedings. The CPUC revised its initial proposal to allow residential customers to receive full credit for the solar power they use directly (netting), rather than treating all solar power as exported. This is a significant win for multifamily property owners and renters, keeping solar investments more financially attractive.
With the new successor tariff coming into effect, it’s vital to consider grandfathering your existing or planned solar projects under the current, more favorable VNEM 2.0 tariff. This allows you to lock in the existing rates and conditions before the changes take place.
How to Grandfather Your Solar Projects:
To qualify for VNEM 2.0 and be locked in for 9 years, you need:
Understand the Deadline:
Sunset Date: February 14, 2024 (90 days from vote on PD)
Legacy Period: Nine years for all projects submitted successfully between April 15, 2023 and the sunset date (February 14, 2024). After nine years, solar allocated to residential meters will continue to be netted, while solar allocated to nonresidential meters will be compensated at ACC export rate.
Evaluate Your Solar Projects: Look at your properties or upcoming projects and determine which ones could benefit from grandfathering VNEM 2.0.
Submit Your Interconnection Applications: Make sure your applications are complete and submitted before the deadline to qualify for grandfathering.
Prevailing Wage Grandfathering Scenarios
The CPUC’s decision is a significant change for shared real estate owners in California. While it introduces new challenges, understanding and utilizing the opportunity to grandfather projects under VNEM 2.0 is essential. At Ivy Energy, We recognize that the interconnection application process might seem intricate. That's why our team, backed by a strong network of partners, is prepared to guide you through each step, ensuring accuracy and timeliness in all documentation. Trust Ivy to be your advocate and partner during this pivotal time. Please reach out to our team, and let's discuss how we can assist you in starting the grandfathering process to secure the VNEM 2.0 tariff.
CA has passed laws like AB802 and Title 24, mandating renewable energy on certain multi-family properties?
Click Here to learn more about how you can comply while turning a profit with Ivy’s Virtual Grid alternative to traditional Sub Metering.