California’s solar industry has been anxiously waiting as the California Public Utilities Commission (CPUC) makes progress on NEM 3.0, an update to the state’s net metering policies. The planned changes have caused significant controversy due to the fact that they would slash compensation rates to a fraction of what solar customers receive under the current NEM 2.0 policy.
CPUC made revisions to NEM 3.0 after receiving intense criticism from the community. Their latest draft came in May, and an update was planned for release by the end of August. This deadline came and went without any new developments, instead getting pushed again to the end of September. That deadline was then missed as well, leaving many wondering: What’s causing the hold-up?
NEM 3.0 Update Postponed to Avoid Voter Backlash
California’s energy crisis and rising costs are top of mind for voters now. The state’s regulators have grown nervous that releasing a new NEM 3.0 draft will cause heavy sway at the voting booths, angering citizens into voting against those they blame for an unfavorable change to the policy.
This announcement has stirred up even more criticism, however, with many feeling that a hold is an act that prevents voters from having a fair and transparent understanding of where exactly candidates stand on solar. There are also fears that this move confirms the NEM 3.0 update will still majorly disadvantage solar customers.
Expecting a Drop in Solar Energy Leads
The uncertainty surrounding the state’s NEM policy has made many prospective solar customers wary of installing. Without a fair net metering rebate, they question whether or not it even makes financial sense to invest in an installation.
Contractors may now be looking at even more difficulties in persuading solar leads to buy. The outlook for NEM is not strong, and it’s likely that the new policy is going to be a deterrent for homeowners worried about savings.
