Farmers who are interconnected before the cap fills will enjoy the benefits of NEM 1.0 at a grandfathered payback rate. While mid-2016 might sound far off, the truth is — it isn’t. NEM 1.0 payback on an installation is about 3.2 years, on average, while anticipated payback with NEM 2.0 is approximately 5.4 years.
What does this mean for you?
JKB Energy is the leading solar provider in ag and understands how to maximize your property boundaries and existing infrastructure without upgrades. We have a strong understanding how NEM 2.0 rates will affect your monthly bill; if you want to lock in your payback rates for existing pumps and control energy costs for future construction it’s time to act.
Timing: What’s the Rush?
The bill is anticipated to change over June or July of 2016. The big question is: Does the system need to be 100 percent finished? Depending on the size, it can take 4-12 months to complete the project and many people don't know whether they'll be accepted into into NEM 2.0 or NEM 1.0 because of the time it takes to get a system up and running. Submit your app today for the greatest chance at NEM 1.0.
The California Public Utilities Commission (CPUC) has until December 2015 to finalize the new compensation rules. It’s very likely that Governor Brown will extend the portfolio, meaning that 50 percent of California’s energy will be derived from renewable utility sources. Governor Brown has gone on record as saying he’s “looking to bump this to 50 percent and extend the caps.” However, at this point nothing is confirmed.
Month 1: Onsite survey to analyze existing infrastructure; complete full bid with 25-year forecasting estimate
Month 2-3: Agree to terms; process utility application and permit process
Month 4: Begin construction and installation
Month 5: Construction in progress
Month 6: Construction in progress; walk-through with PG&E to apply for interconnectivity
Month 7: Interconnectivity ready! JKB Energy manages interconnectivity lobbying with PG&E or Southern Cal Edison
*Assuming infrastructure does not require construction upgrades
What if I just can’t swing it now?
That’s OK. Solar is a strong investment no matter what the timing, and JKB Energy will certainly smooth out the process. Of course, we can’t make any guarantees about interconnectivity time and grandfathering NEM 1.0; however, we can promise you that we’ll leverage our relationship with PG&E on your behalf to lock in the best rates possible.
You won’t see the same kind of savings when NEM 2.0 passes, but there will still be opportunities to save. Rates will still go up regardless, but adding solar still has the potential to halve your bill.
Are you curious how some of our ag clients are making solar work for them?
Check out our case studies page to read how Red Top Jersey Dairy in Chowchilla, Montpelier Nut Company in East Turlock, and Buttonwillow Land & Cattle Company in Buttonwillow are putting solar to work on their farms.