Tesla is rallying employees to fight back against California NEM 3.0 proposal. It could potentially damage the company’s stance in the solar market. NEM 3.0 is a controversial proposal that is meant to include some massive changes to net metering for solar customers.
The credit for energy that residential solar owners put back into the grid would be slashed to a wholesale rate of about $0.04 per kWh. This would destroy the value of residential solar in California, especially for those who don’t have a home energy storage system, like a Tesla Powerwall, with their solar power system.
On top of slashing net metering rates, the NEM 3.0 proposal adds a new fixed monthly charge for solar owners of $8 per kW installed on their roof. It means that someone with a 10 kW system has to pay $80 per month to their electric utility just to stay connected to the grid and send back electricity at a new lower rate.
The new proposal, which is currently being reviewed by CPUC, has been slammed by solar companies and environmental groups for discouraging a shift to residential solar, while the three major electric utilities – PG&E, SCE, and SDG&E – have voiced their support for the proposal.
Tesla, which aims to become a major decentralized electric utility with its solar and battery systems. It is now voicing its opposition to the proposal and asking employees in California to contact the CPUC to let them know they are against the proposal, “Tesla is working with our partners in the solar and environmental community to urge the CPUC and Governor’s office to adopt a more reasonable approach that doesn’t punish solar customers.”
Details about the proposal
NEM 3.0 is a proposal under consideration at the California Public Utilities Commission (CPUC) that reduces the benefit of going solar for customers of PG&E, SCE, and SDG&E. If adopted, the proposal would apply to new customers that submit interconnection applications to add solar [by] May 2022. It would also apply to existing customers on NEM 1.0 or NEM 2.0 after their system has been in operation for 15 years. Residential solar customers on NEM 3.0 would be required to pay the utility a new fixed charge of $8/kW per month, regardless of energy used. This comes to roughly $50-$60 per month for an average size solar system. This proposal is not final and can change in response to public feedback. The public can express their opinion to the CPUC by taking certain actions.