Nevada proposes retroactive Net Metering change

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CaptSpiff

Minister of Fire
Jan 13, 2014
551
Long Island, NY
I have been fretting about the "lucrative" Net Metering Laws implemented by our state legislators having a risky future, and I am expecting this to become an issue here in another 5-10 years:

http://www.greentechmedia.com/artic...tail-Rate-Net-Metering-for-New-and-Existing-S

The highlight of the article is this:

"The (Nevada PUC) decision increases the fixed service charge for net-metered solar customers, and gradually lowers compensation for net excess solar generation from the retail rate to the wholesale rate for electricity, over the next four years. The changes will take effect on January 1 and will apply retroactively to all net-metered solar customers."

I am struggling to get my finances together to get a large enough solar array on my house to offset the use of both myself and my parents home. A 10Kw array under present Net Metering would cover my bill and reduce my parent's by 50-60%. I can get my parents bill reduced even though they live in the next town because NYS allows me to apply any of my excess Net Metered credits to my parents electric bill.

The sticky issue is if the politicians amend the Net Metering laws, my entire analysis is out the window. I presently pay about $0.22/Kwh for total electrical bill. That breaks down to about:
$0.10/Kwh for grid delivery (trans & distrib),
$0.09/Kwh for power supply (generation),
$0.01/Kwh for taxes (state & local),
$11/month fix meter charge.

If the rules change and my potential "over-production" is seen as a sale to the grid and credited at only the "power supply" rate, my ROI or payback would be impacted severely.

I've fretted about this and have argued both sides of the Net Metering debate, but never thought about this trifecta: raising the basic monthly and shifting from retail to wholesale and making it retro.

I'll be keeping an eye and ear open for this here in NYS. This mole needs wacking quick.
 
THats some freight for electric. I pay about 7 c generation and 3c trans,and dist. I guess its a Long Island thing. I though it was just the property taxes that were astronomical there. I guess electric rates are no bargain as well.
 
Ya not far off what and how we pay here. Only stupid thing is now we make too much and sell it to you guys for a loss. Our government has royally messed up our hydro system. But dont worry I get to enjoy eyesore windmills in my backyard that produce a farts worth of power at an exorbitant cost
Thanks Ontario Liberal government!!!
 
Capt, can you explain what you think retroactive means? I don't think it means that they get to claw back money they gave customers under the earlier contract. It just means that is superseded the previous net-metering contracts going forward, right?

I agree with you about the long-term viability of retail net metering, but I think you could easily get 10 or more years in NY. And if you were relying on a simple payback much longer than 10 years anyway, it was prob a 'bad' investment.

I think the current surge of these net metering stories are pre-emptive by a few 'bad' utilities....whose profits rely on making expensive peak electricity, as well as pols with an axe to grind. The turning point in most places will be when solar penetration reaches a much higher value, like 5-10%, which could be awhile in LI.

The counter point is that solar and wind remain very popular (even with GOP voters, contra GOP funders), and we could see renewable portfolio standards and SREC markets expand in more liberal states (among which I would include NY). If SRECs took off, you would make more than anticipated, like your neighbors to the east in MA.

If you were worried the excess production applied to another property or parents thing could go away (it could go away tomorrow IMO), just do a smaller array OR plan on buying a nice EV at that future date/contingency. Some have predicted that 200+ mile EVs will be cheaper (up front purchase price) than any comparable gasoline cars by 2019-2020. They are already much cheaper to operate.
 
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Woodgeek, I didn't mean to imply any "claw-back", just that many of us think of Net Metering as a Contract. Instead it's a Law which exists at the whim of the State Legislature.

I've gotten a bit manic about getting the Solar done in 2016 and let out a big sigh of relief when the Federal incentives were extended. Then I read the article of the shenanigans in Nevada and I'm floored that they plan to implement not just one poison pill, but all three.

I think your timeline may be shorter here on Long Island. We've had an explosion of solar roll-out in 2015. Next year it's expected to be even greater. Most of the incentives have been to the residential side (10 Kw or less), but some recent changes have made the commercial & industrial guys perk up (20-100 Kw rooftop). The local newspaper ran a bunch of stories about the installers ramping up hiring just for that market segment. Then there's the "out of state" investors who are proposing to convert 100's of acres (sod farms and even an old golf course) to solar farms feeding directly into a substation at 13Kv (proposing 5 to 8 Mw). These guys are serious enough to give the Utility front money to begin the engineering, and that has "forced" the Utility to place a moratorium on ANY additional solar connected in that substations service footprint. They say that the substation has now reached it's limit of solar capacity, and that moratorium applies to simple residential connections as well.

Finally, I did intend to have those "credits" feed a EV car eventually. But with gas prices at $2.09/gal I'll be holding off on the EV for a few more years. But I'll be counting on those NET daytime credits to fully offset my night time charging, both at retail rates. My nightmare would be a daytime Utility buyback at wholesale Generation cost, and then sell it back to me at night retail which will include the T&D.
 
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