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California Utility to hit NEM Cap Soon: The New NEM 2.0

SDG&E is the first to hit cap, followed by PG&E (NorCal) and finally SCE (SoCal)

Therefore, it will be the first utility in California to enter NEM 2.0 territory, which kicks in after the 5% penetration mark is reached. This means that new, more expensive rules will come into effect with customers who want to use net-metering being obligated to pay a little more. Although the inevitable new rules are more expensive than the preceding programme, the solar industry has been positive in welcoming in the new regime, asserting that they do not think it will hinder the growth of rooftop solar in the state.

SDG&E only has 5.5MW remaining under the net-metering scheme before it hits its 5% cap, but there are still 2,389 applications representing 38.2MW yet to be fulfilled. Source:

Pursuant to rules set by the California Public Utilities Commission (CPUC), NEM 2.0 comes with a successor tariff for new users. Once SDG&E hits the cap, those who want to use net-metering will have to: “The terms of NEM 2.0 have already been negotiated and the final vote of the PUC will take place on 23 June,” said Michael Powers, co-founder of San Diego’s Stellar Solar.

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