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Prices

SDGE Rate Structure Changes

By | Prices, Residential, Utilities | 4 Comments
2015 SDGE rate structure changes

SDGE Has Implemented Significant Rate Structure Changes

With approval from the California Public Utilities Commission, SDGE and the other major investor-owned utilities in California have enacted the beginning of their “tier-flattening” strategy. This plan will allow them to adjust rates and eliminate tiers, getting to a two-tier structure by 2019. Once finished, the goal is to have two tiers (and a “super-user surcharge” that will essentially create a third tier) with a difference of 20-25% in price between the lower and upper tier. The surcharge will be added to the price of second tier energy once the high-use threshold is reached.

The changes began September 1st, 2015 for SDGE by lowering the price for tier 3 (which has absorbed tier 4), and an increase in prices for tiers 1 and 2. Here’s what the changes look like for the typical homeowner (Schedule DR – RESIDENTIAL SERVICE Effective 9/1/2015):

$10/MONTH MINIMUM FOR ELECTRIC
-AND-

TIER 1

PREVIOUS PRICE
17.41¢ per kWh

NEW PRICE
18.08¢ per kWh

TIER 2

PREVIOUS PRICE
20.46¢ per kWh

NEW PRICE
20.53¢ per kWh

TIER 3

PREVIOUS PRICE
40.36¢ per kWh

NEW PRICE
39.61¢ per kWh

TIER 4

PREVIOUS PRICE
42.36¢ per kWh

COMBINED WITH TIER 3
39.61¢ per kWh

While this may look like good news at first glance, the overall assessment is that this is the beginning of price increases through 2019 for the majority of SDGE residential customers. As price adjustments continue, the goal is to get to a 20-25% difference between two tiers. The assumption is that the lower tier will continue to climb in price as the upper tier price comes down slowly. Effectively, everyone will be paying significantly higher costs for the lower tier but less for the upper tier… until the super-user surcharge comes into play. At this point, it will be as if there is still a third tier, which will be much more expensive than the baseline price. Once these changes have been completed by 2019, SDGE’s next goal will be switching all customers to a time-of-use rate to allow prices to reflect demand.

Lock-in Lower Energy Rates With Solar

With utility companies making so many changes to how they charge their customers, and prices continually increasing, there is no certainty for the future of electricity rates. Going solar now allows you to lock-in lower energy rates (as low as $0.06/kWh) and, in many cases, requires $0 down. That means you can start saving on your energy costs and immediately see an increase in monthly cash flow. With about 10 different financing options such as 1.89% financing, and PACE programs such as HERO and YGRENE, we’ll be able to help you find the solution that’s best for your personal situation. Don’t delay – get started now to lock-in the current Net Metering Agreement for the next 20 years and SECURE YOUR SAVINGS WITH SOLAR!

2014 SDGE Rate Hike

Net Metering Status Update

By | Net Metering, Prices, Residential, Solar, Utilities | No Comments

ACT NOW – BEFORE THE NET METERING RULES CHANGE

Net metering, the agreement customers enter into with SDGE when they install solar, is going to be changing soon. The California Public Utilities Commission has finalized NEM 2.0, which will go into effect once solar production capacity reaches 5% of peak energy demand. Customers who have already installed a solar panel system, and those who install soon, are grandfathered in for the next 20 years and will receive retail rates for the surplus energy they produce and put back onto the grid. Net Metering 2.0 has been announced and retains much of the value of the current program, with a few minor modifications.

Current Net Metering Status (as of March 31, 2016)

94.47%

This represents the current NEM Installations and Applications in Queue (Cumulative MW Installed under NEM + NEM MW in Queue). This number is calculated by SDGE and was last updated on March 31, 2016.  Of the 617 MW available under the current Net Metering Agreement (5% of peak demand), 582.9 MW are already installed or in the queue (4.72% of peak demand). 34.1 MW remain until the current Net Metering Agreement closes.

WHEN WILL THE NEM CAP BE REACHED?

Some solar companies in San Diego had been claiming that “the sky is falling” since mid-2015. However, the timelines provided by more reliable sources (SDGE, the California Public Utilities Commission, and the California Solar Energy Industries Association) estimate different dates when the NEM cap could be reached.

CALSEIA ESTIMATE: May-June 2016
CPUC ESTIMATE: March-July 2016
SDGE ESTIMATE:
 July-December
 2016

SDGE Net Metering Changes

NOW IS THE TIME TO GO SOLAR!

With the current net metering agreement coming closer to the cap in SDGE’s territory, those who act now can benefit by locking-in retail rate credit for surplus energy production for the next 20 years! Net Metering 2.0 will still help homeowners and businesses save significantly on their energy costs, but does include a nominal upfront fee and some non-bypassable charges for energy consumed from the grid.

If you’ve been thinking about going solar, it’s time to get serious or risk missing out on the best value with solar and SDGE. Request a free quote and see how much you could be saving.

Enjoy Comfort & Savings – Live Better With Solar.

Data for Net Metering Status provided by SDGE.
View the full report at: www.sdge.com/clean-energy/net-energy-metering/overview-nem-cap

Net Metering Changes

By | Prices, Residential, Solar | One Comment
SDGE Net Metering Changes

Upcoming Changes To Net Metering

Net metering, the agreement customers enter into with SDGE when they install solar, is going to be renegotiated soon. Customers who have already installed a solar panel system, and those who sign up soon, are grandfathered in at a $5/month grid interconnection fee for the next 20 years. Once solar production capacity reaches 5% of peak energy demand (we are at 3.1% as of January 30, 2015), SDGE will be able to enact a newly negotiated grid interconnection fee. Though the actual amount has not been approved yet, some experts expect the monthly fee to increase to as much as $30/month.

WHEN WILL THE NEM CAP BE REACHED?

Some solar companies in San Diego are claiming that the cap will be reached sometime this summer. However, the timelines provided by more reliable sources (SDGE and the California Solar Energy Industries Association) estimate different dates for the NEM cap to be reached.
SDGE’S ESTIMATE

April or May 2016

CALSEIA’S CONSERVATIVE ESTIMATE

Between May and August 2016

CALSEIA’S AGGRESIVE ESTIMATE

January 2016

NOW IS THE TIME TO GO SOLAR !!!

With the current net metering agreement coming closer to  the cap in SDGE’s territory, those who act now will benefit greatly by locking-in the $5/month grid interconnection fee for the next 20 years! While we don’t yet know how much this charge will go up, everyone in the solar industry is aware that SDGE wants to significantly increase this monthly fee for customers with solar.

If you’ve been thinking about going solar, it’s time to get serious or risk missing out on lower fees from SDGE. Request a free quote and see how much you could be saving!

Lock-in Lower Energy Rates With Solar

With utility companies averaging a 6-7% annual increase, you can expect your bill to double every 12 years. Going solar now allows you to lock-in lower energy rates (as low as $0.06/kWh) and, in many cases, requires $0 down. That means you can start saving on your energy costs and immediately see an increase in monthly cash flow. With about 10 different financing options such as 1.99% financing, and PACE programs such as HERO and YGRENE, we’ll be able to help you find the solution that’s best for your personal situation. Don’t delay – get started now to ensure your eligibility to take the 30% Federal Tax Credit for 2015!

2014 SDGE Rate Hike

Net Metering 101

By | Prices, Residential, Solar | No Comments
San Diego solar net metering

What Is Net Metering?

And How Does It Work?

As we approach the Winter Solstice on Sunday, December 21st, we experience the shortest days of the year. Of those who have solar or are considering investing in solar, many are asking “How do the shorter days and weather affect my solar production?”

In San Diego, we have a very mild experience when it comes to “winter weather,” which is one of the reasons we’ve all chosen to call this place home. We do, however, experience a few factors that reduce overall solar power production, such as the sun crossing the sky at a lower angle or the occasional cloud-covered day. These factors can reduce total light density (the sun’s rays that power our solar panels) from over 1,000 watts-per-square-meter to less than 200 watts-per-square-meter.

SDGE smart meter for San Diego solar

How Does Net-Metering Work?

This agreement, entered into by customers with solar and SDGE, measures the total energy (in kilowatt-hours) you draw from the grid against the total energy you put back onto the grid over a 12-month period. On days when you produce more electricity than your home consumes, such as a typical San Diego summer day, the excess generation gets pushed back on the grid and SDGE is required to provide you with credit for this energy. On days when you consume more electricity than you produce, as you may have seen during the storms over the past few weeks, SDGE provides that electricity and charges your account accordingly. These charges are not paid monthly, though, just once a year.

What Is A True-Up Bill?

SDGE sends you a statement every month showing production vs consumption of grid electricity. This monthly statement is not a bill, just a summary for your records. Once a year, you will receive a “true-up bill.” This will show you the net energy results and requires payment if you’ve pulled more electricity from the grid than you’ve pushed back onto it. If you’re annual over-production is greater than you annual consumption from the grid, you’ll receive a payment from SDGE at the nominal price of $0.04/kWh.

Solare Energy’s Unique Approach

When we design systems, we take into account multiple factors including your annual energy consumption and rate structure analysis. Most solar companies never analyze the customer’s rate structure and leave them on the tiered billing system. Most of our customers see additional benefits by switching to Time-of-Use billing, which allows you to earn more for the energy you produce during the day and pay less for the energy you consume at night, giving you 2-2.5 times more credit for your electricity production vs consumption with SDGE.

Lock-in Lower Energy Rates With Solar

With utility companies averaging a 6-7% annual increase, you can expect your bill to double every 12 years. Going solar now allows you to lock-in lower energy rates (as low as $0.06/kWh) and, in many cases, requires $0 down. That means you can start saving on your energy costs and immediately see an increase in monthly cash flow. With about 10 different financing options such as 1.99% financing, and PACE programs such as HERO and YGRENE, we’ll be able to help you find the solution that’s best for your personal situation. Don’t delay – get started now to ensure your eligibility to take the 30% Federal Tax Credit for 2015!

2014 SDGE Rate Hike
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