Do your property’s energy bills look higher than normal this summer?
It hasn’t exactly been a normal year for weather, especially heatwaves, but there are other reasons that some California businesses are seeing higher utility bills this summer than before. Coldwell Solar has noticed several important factors contributing to this trend:
- Higher Time-of-Use rates: This summer’s Time-of-Use rates are higher than normal, increasing the costs at high-demand times of the days.
- High than normal temperatures: We are already seeing excessive heating warnings in some areas of the state that can drive energy use up.
- Annual rate increases: Annual rates historically have increased by around 3% a year, but lately rate increases have been much higher for a variety of reasons.
If these factors are affecting your solar installation, it’s vital to understand how Net Energy Metering (NEM) works in the State of California!
NEM allows owners to essentially store credits when the solar system overproduces, to spend on electricity during times when their power usage exceeds their solar production. This allows a solar system to fully cover electricity payments for a year even with variable production that can be much higher in the summer
Are you ready for the changes coming to Net Energy Metering? Currently California is deliberating on NEM 3.0, the upcoming version that will replace rules made in NEM 2.0. While details are still being decided, the current version of NEM 3.0 includes additional fees and limitations that will make it more difficult for utility payers to benefit from the system. The potential impact of these changes could impact solar savings by as much as 50-75% for customers depending on their usage patterns and rate classes.
The good news is that, at this time, NEM 2.0 plans can still be locked in place or “grandfathered” for future years. We recommend owners considering solar installations to act quickly if they want to benefit from the more solarfriendly terms of NEM 2.0.
Want to learn more information? Tell us about your business!
Use this solar savings calculator to quickly estimate your solar potential and savings by Company. Estimates are based on your yearly kWh usage or yearly electricity bill.
Disclaimer: This is a rough estimate for modeling purposes. We will analyze your specific rates and usage profile to determine an accurate savings estimate for your specific project.
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