Incentives to Sell Renewable Energy Back to Utilities May Be Impacted in Southern California

Last year, San Diego Gas and Electric (SDG&E) filed a General Rate Case with the California Public Utility Commission that will impact the production of renewable energy by changing Net Energy Metering (NEM). NEM allows customers that install small-scale renewable energy facilities such as photovoltaic systems to receive financial credit for power generated by their system and fed back to the utility. Today, small businesses that produce energy from solar, wind, and other qualified renewable energy technologies receive full credit for electricity supplied to the grid when an NEM customer generates more power than they are consuming. SDG&E proposes a “Network Usage Charge” that disproportionally increases costs to NEM customers as compared with non NEM customers and will reduce the incentive to produce renewable energy. Read More Here