2014 Net Energy Meter Aggregation Program
by Lawson Schaller
Progress is continuing with solar rights,
representation and better benefits for property owners.
PG&E’s NEM (Net Energy Meter) Aggregation program was
approved on February 20, 2014 as a result of SB 594
(Wolk). This legislation allows a single customer with
multiple meters on the same property, or on the customer’s
adjacent or contiguous property, to use solar and other
renewable energy generation and net energy metering (NEM)
to serve their aggregated load behind all eligible meters.
This is particularly helpful for farmers and ranchers who
often have multiple meters. For example property owners
may have one or two meters for wells, one or two for a
barn or shop, and one for the home. In the past the
property owner could only offset the electrical usage of
one meter with one solar system. It was often impractical
and cost prohibitive to install multiple solar systems for
multiple meters on a property. Now a property owner can
install one system to offset multiple meters.
There are a number of conditions around the NEM-A see
this link for the basics.
The NEMA program is a big step forward
however PGE has put geographic limitations and other
restrictions on the program. Another disadvantage of the
NEMA program is that PGE has removed the ability for NEMA
participants to be paid for overproduction of surplus
energy from the system on. Typically the monthly credits
or debits roll from month to month.
At the end of a 12 month cycle the property owner receives
a True Up statement which shows excess energy produced or
the amount of energy that PGE had to deliver due to a
shortfall of solar production. Property owners with solar
that are not in the NEMA program receive a check for the
surplus energy produced after the 12 month cycle, though
at a steeply discounted wholesale rate (See:
Slo Coast
Journal July 2011). However if you opt for the NEMA
program you lose the right to be paid for your solar
electric
surplus or overproduction.
Because of this it is very important to size the solar
system accurately. Typically the goal is to zero out
or offset all of your PGE electrical usage and end up with
no electrical bill. Generally it is not an exact
science to size a solar system as electrical usage can and
does fluctuate with weather patterns, lifestyle,
and unforeseen changes in the business or home. Such as
adding an electric car, or adding a pool or hot
tub. Farmers may increase or decrease the electrical usage
based on crop rotations, or irrigation cycles,
etc.
As a solar analyst I can look at past usage, which is often
a good indicator of future usage, but not always.
Family size can increase or decrease with children going
off to college or elderly parents moving in.
Some folks retire and travel
two to six months a year or,
conversely, spend more time at the home expanding
the garden, buying a pottery kiln or welder for a
hobby/part time business, or, as mentioned, add an
electric car. I generally like to sit with homeowners and
take time to discuss all of this and make
our best estimate going forward. Solar is a great
investment on many levels but is also a significant
investment and thus you want to get it right.
Going a step farther, a good solar analyst will recommend
the homeowner invest in energy efficiency.
This is a very good investment and allows for a smaller
solar system - (See
Slo Coast
Journal November
2012, February and
June 2013,
Jan 2014). There are many
opportunities for property owner to make their
buildings more energy efficient. For the farmers and
ranchers there are opportunities to invest in more
efficient pumps, and to improve irrigation efficiency (and
water conservation) in other ways.
I am hopeful that our legislators and the utility
companies will continue to create opportunities and
benefits for solar system owners. Going forward solar and
energy efficiency has the potential to play a
growing role in our national energy strategy.
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