[RE-wrenches] PG&E Nem3

[Harry Mahon]

William - I believe the chart you included is EXPORT rate only.  So customer will not PAY > $3/kWh from 6-8 pm in Sep but whatever the TOU rate is as I think NEM3 customers are forced onto TOU - I think somewhere from $0.55-$0.60/kWh.  (If they can dump their battery into the grid from 6-8 every evening in Sep, they can bank a lot of credits!)

This hour by hour breakdown of export rates (and the fact the chart will change year to year, only get the value for year when interconnection approved) makes accurate calculation of return on investment in the system very difficult....

And the credit amount I believe can only be applied to the energy cost, it cannot offset some other bill categories, like meter charge or distribution I think.  Again, making accurate financial calcs very hard...

Best -
Mike


Michael Mahon (he/him)
Solar Academy Manager  |  SMA America
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From: RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org> On Behalf Of William Miller via RE-wrenches
Sent: Tuesday, January 14, 2025 2:11 PM
To: RE-wrenches <re-wrenches at lists.re-wrenches.org>
Cc: William Miller <william at millersolar.com>
Subject: [RE-wrenches] PG&E Nem3

Colleagues:

I will be creating a Case Study web-page on this subject.  I have found this to be the most efficient way to present an issue to those that are involved, including manufacturers, service providers, and industry colleagues.  This prevents me from repeating my story over and over and allows me to easily present documentation.

In the meantime, attached is one of the most telling documents that pertains and below are some details.

The document outlines the NEM3 rate plan and lists hour-by-hour, month-by-month the rates that PG&E will charge and credit their grid-tie customers under NEM3.  Direct your attention to the "Delivered" columns.  This is the rates at which export is credited.  Note that there are many hours that the utility will credit you zero dollars for the energy you deliver to them.  Note also that in September I will be paying up to $3.84/kWh to purchase utility-provided energy.

An example of the "net" result of NEM3 billing in my case is this:  During the billing period that straddled the end of October and the beginning of November (refer to the attached chart for rates during that period) I exported 666+ kWh to the utility.  For my efforts I was rewarded with a whopping credit of $6.41.  This is from a non-battery system rated at about 11 kW, STC.

In PG&E territory NEM3 will be in effect for all applications received after 4/15/23.  For all existing customers, their rates will be pushed to NEM3 after 20 years from date of system commission.  The latter case applies to me. These are the early adopters that paid a premium and helped jump-start the industry.

I live in an unincorporated area of San Luis Obispo County.  Fortunately for me we recently elected a liberal majority on our governing body, a Board of Supervisors.  That majority allowed the introduction of an alternative energy provider (3CE Energy) in the unincorporated area after it was rejected for years by the previous conservative majority.  With 3CE I have been assured I will return to the retail-for-retail credit on exported energy.  My billing went on to the NEM3 rate in September 2024 and transitions to 3CE in late January 2025.  This means I will be in NEM3 purgatory for only about 4 months.  Others in PG&E territory will not be so lucky.

More later.

William Miller

Miller Solar
17395 Oak Road, Atascadero, CA 93422
805-438-5600
www.millersolar.com<http://www.millersolar.com/>
CA Lic. 773985


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