California’s residential solar industry could soon be a victim of its own success, now that the legislative session ended without passing AB 560 (Skinner). As reported on The Real Story last June, this bill would have allowed solar customers to continue benefiting from a program called ‘net energy metering.’
According to The Vote Solar Initiative, net metering is a simple billing arrangement that enables energy customers to use solar and small wind systems to reduce their power bills when their system output exceeds their use.
Without AB 560, parts of California are expected to receive enough applications to hit the current program cap as early as 2010, a prospect that would be devastating to the growing in-state rooftop solar market and the customers it serves.
“Net metering means two things: it means energy bill savings when a consumer goes solar, and it means local green jobs,” said Sara Birmingham, Director of Western Policy for the Solar Alliance. “It is not an optional policy if California wants to continue building a new energy economy.
“We saw the state’s rooftop solar market double in size last year alone. The looming net metering cap would likely stamp the brakes on further growth early next year. That’s a lot of jobs, savings and environmental benefits at risk at a time when California frankly cannot afford it.”
Existing law requires California’s major electric utilities to make net metering available to customers until the total program capacity exceeds 2.5% of the utility’s peak demand. AB 560 would have doubled the net metering program capacity to 5%, ensuring that Californians deciding to go solar would not be left without this valuable program in the coming years.
Despite widespread support, the bill’s progress was slowed in the final days of the 2009 legislative session by the late introduction of an amendment on the ancillary contractor certification issues, which produced a conflict between California labor groups.
A review of the application rate for the state’s solar incentives suggests that enough applications will be received to hit the 2.5% net metering program cap in PG&E territory sometime next year. Once applications reach that cap, potential customers will have no certainty as to whether they will be able to offset their electricity bills by going solar.
