PG&E NEM 2.0 is Around the Corner

The long-anticipated PG&E NEM 1.0 cap will be reached in the next few weeks. PG&E has been interconnecting about 3-3.5MW per day on average and with 34MW left at the time of this writing, the expectation is that before the end of the year, NEM 2.0 for PG&E will be in place.

The only way to ensure you are locked into NEM 1.0 is to have an Authorities Having Jurisdiction (AHJ) approval. PG&E will be working until midnight the day they hit the cap and everyone with a completed Interconnection Application and AHJ approval will make the cut. The next morning it will be NEM 2.0. It should be noted that you will not need a Permission to Operation (PTO) or have system upgrades to qualify. You just need to have the completed application and AHJ approval.

Some utilities like SDG&E hit their cap earlier in 2016 and the prediction as of now is that SCE will close their NEM 1.0 on June 30th, 2017 before reaching the cap.

What will the changes be with NEM 2.0?

  • Interconnection Application Fees – Application fees are only $145 for NEM projects under 1MW but will be more for those over 1MW. PG&E will need to process those payments before projects can go into electrical review.
  • Non-bypassable Charges – Fees will be charged on all the energy consumed that cannot be offset by what the customer exports to the grid. This fee will translate to about 2 cents per kilowatt hour, depending on rate tariffs, for all energy exported to the grid and not consumed onsite.
  • 10-year Warranty – All projects will require a minimum 10-year warranty on all equipment and the installation of that equipment.
  • 1MW Cap Lifted – Under NEM 1.0 there was a 1MW cap, which is being lifted for NEM 2.0. Projects over 1MW will now bear a greater portion of the utility costs if necessary distribution upgrades are needed as determined by PG&E.
  • Grandfathering – All NEM 2.0 projects will be grandfathered for 20 years from the date of initial operation.

REC Solar’s interconnection and rate specialists are in daily contact with the utilities and CALSEIA. We are also monitoring this change closely and working with our clients to address any questions.  If you have a project you have questions about or you are considering solar, please reach out to us via the form below and we can discuss your specific needs.

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