Extend Net Metering 1.0 Benefits to NEM 2.0 – Unchanged
The PUC has released its proposed decision and the commissioners will vote on January 28th, and we expect to pass, in its current form. We anticipate this to pass with only minor changes allowing for continued net metering and meter aggregation with full retail credit. Additionally, NEM 2.0 will maintain the 12-month period, allowing solar users to receive dollar for dollar credit. Utilities also would place new solar customers on time-of-use rates beginning in 2018, which will rise during periods of high electricity demand.
No Changes to Meter Aggregation
Meter aggregation will continue to be allowed – and policy will remain unchanged. As a reminder, meter aggregation allows the customer to take the energy loads from your smaller meters and aggregate them into a single solar system. With meter aggregation, users can receive the benefits of solar while decreasing installation costs and improving return on investment.
Congress Extends Federal Investment Tax Credit!
There was concern that the ITC would go away…but luckily it’s not! The ITC credit will remain at 30% through 2020, and then decline gradually for two years before falling to 10%. The legislation allows for PV projects to claim the credit for the year in which they complete construction.
2017-2019 Credit rate will remain at 30%
2020 Expected to decline to 26%
2021 Expected to decline to 22%
2022 Expected to decline to 10% and stabilize permanently
There will be a hearing on January 11th to review arguments by the utilities and pro solar advocates and the final vote will take place on January 28th. Stay tuned for more info to come!