CA One Step Closer to Increasing Net Metering Cap

by BradB from 1BOG, posted on February 23rd, 2010.

Last week, the California State Assembly passed AB 510, a bill to increase the cap on net metering for California residents. 

Basically, net metering works like this:

• When utility customers are using energy from the grid, their meters spin forward.
• When customers use energy they have generated from their solar panels, the meter spins backward.
• Customers are then only charged for the net amount of grid energy used.
• If this bill is signed, customers will be able to do only pay the net amount until 5% of the utility’s peak demand is reached.

If Governor Schwarzenegger signs this bill, which we hope he will do, this new bill will become law.  Currently, net metering is capped at 2.5%.  This bill would double that cap to 5%.

This is good news for anyone considering solar.  Being able to decrease energy bills and save money makes solar more attractive and affordable for homeowners.  With the continued government support of clean energy and energy efficiency (like the upcoming SF PACE program),  the number of California residents going solar is sure to increase!