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California Public Utilities Commission

California Pairs Solar and Storage

California Pairs Solar and Storage

written by The Vote Solar Initiative

We get very excited about the idea of a next-generation approach to power markets that takes full advantage of the suite of clean energy technologies available (what can we say, we’re electricity geeks). We want solar and renewables to work with storage, demand response, conservation and smart grid to repower our system with affordable, reliable, low-carbon electricity. Last Thursday, we took one step closer to that vision in California.

The California Public Utilities Commission issued a decision that will make it significantly easier for energy customers to pair their solar system with an energy storage device. In its Final Decision in the Net Energy Metering Paired Storage proceeding, the Commission decided to allow solar customers who add energy storage to continue to qualify for the standard net metering program, and exempting these customers from burdensome interconnection fees, standby charges and metering requirements.  Responding to recommendations from Vote Solar and other parties, the Commission also required utilities to refund customers who were inappropriately charged these fees over the past year. Put this down as a win for California energy customers and a cleaner grid!

Under the newly adopted rules, customers with energy storage devices 10 kW or smaller will not be required to size the storage to meet either their maximum load or the maximum solar output.  Furthermore, these customers, which includes a significant number of residential and some smaller commercial customers, are now exempt from having to install costly and unnecessary utility-grade meters and can instead rely on the estimated output.  The Commission will issue a separate ruling to determine the precise method for making estimates, but customers with paired storage can still qualify to participate in the net metering program now.

Customers who install energy storage devices larger than 10 kW must limit their storage system size to no more than 150% of the maximum output of their solar system.  These customers must also install more accurate meters, subject to a $600 cost cap for all but the most complex metering configurations.  Anyone who installs larger storage devices with output greater than the 150% limit qualifies under the existing net metering Multiple Tariff schedules, which exposes them to additional costs and potential distribution system upgrades.

The decision is a significant milestone for both solar energy and energy storage.  Prior to the decision, utilities have interpreted language from a recent update to the California Energy Commission (CEC) Renewables Portfolio Standard Eligibility Guidebook in a way that made it difficult and expensive for solar owners to add storage under the standard net metering tariff.  The Commission’s decision clears away those unfair roadblocks and opens the door to a new era for clean energy supporters.

Storage paired with solar addresses many of the concerns utilities have about the intermittency of PV and allows solar customers to provide more value to the grid. For example, a solar customer can store clean energy produced during the daytime and discharge it to the grid in the evening when most people are coming home, turning on their air conditioners and driving up demand for energy.   It’s a pretty simple concept, but a real game-changer for clean energy.



May 23, 2014 0 comment
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Confused About How to Develop a Microgrid?

Confused About How to Develop a Microgrid?

written by Elisa Wood

If you’d like to develop a microgrid for your business, campus or community, but don’t know where to start, you’re not alone.

In the US, the race is on to build these mini-grids that can keep the power flowing when the larger grid goes down. But it’s a race without a pathway or clear rules in many states. Regulators appear to be chasing the market more than guiding it.

Often a green energy leader, California recognized this problem and outlined solutions in a recent white paper issued by the California Public Utilities Commission Policy & Planning Division.

“The question is not does the industry encourage or discourage this development – this development is happening whether the utility, or regulator, encourages it,” says Microgrids: A Regulatory Perspective, issued April 14.

Microgrids are coming. So what frameworks can regulators create to get the most out of them and guide those who want to develop a microgrid?

As is often the case in electricity regulation, the first step is defining the product. And, of course, we’ll probably end up with a unique definition for microgrid in almost every state.

Learn more about microgrids by joining the discussion now going on in the Microgrid Knowledge LinkedIn Group.

The CPUC staff paper defines two kinds of microgrids: 1) A basic microgrid with one customer, possibly with multiple meters and a dedicated distribution system; 2) An advanced microgrid with multiple customers and multiple resources that can island or connect to the grid, and may have a dedicated distribution network or use the existing one.

california-advanced-microgrid-e1398114903227

We should avoid pigeon-holing what microgrids can do, the paper says. They are not just “a set of technologies capable of keeping the lights on specific locations. Rather, microgrids can provide far more benefits, not only to the customers of the microgrid, but to the grid as a whole.”

Next Steps

So what needs to be done to guide those who want to develop a microgrid?

The paper outlines several steps for California.

First, microgrids are likely to disrupt the conventional utility model, says the paper. The bottom line is that independent microgrids will take customers from utilities. So regulators and policymakers should consider a new role for the utility.  For example, the utility might act as a ‘distribution system operator,’ akin to the independent system operators that run the US transmission networks. In essence, the utility would oversee the distribution grid, including any connected microgrids, to ensure that the lights remain on for all.

Second, the paper suggests that the regulators develop standards for microgrids to ensure that they interconnect and interact safely with the macrogrid.

Third, “Location matters!’ the paper says. Map the distribution grid to determine where to site microgrids and perhaps set up a locational pricing system to encourage siting in those areas.

Many states and the federal government are now focusing on microgrids. California regulators should get involved in national efforts, the paper says. This will help them better understand microgrid challenges as California develops its own policies.

And last, all revolutions create discomfort; the microgrid revolution will be no different. As the paper puts it, “This will not be easy, as widespread and successful implementations of microgrids will upset the century-long view of the electricity grid. We should not shy away from this opportunity, but should embrace it thoroughly.”

This article is published under a cross licensing agreement with EnergyEfficiencyMarkets.com



April 22, 2014 1 comment
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Electric Vehicles and Grid Integration of Renewables

written by Walter Wang

Vote Solar recently intervened in a proceeding (pdf) on electric vehicles (EVs) at the California Public Utilities Commission.

Why EVs and why are we — a solar organization — so excited about this effort?

Couple of reasons. The first has to do with the grid-integration of renewables. EVs represent

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January 6, 2014 0 comment
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AB 327 Approved by CA Senate

written by Walter Wang

California’s much-watched utility rate reform bill cleared its final major hurdle in the Legislature Monday, gaining approval on the Senate floor with a resounding 33-5 vote. This follows months of negotiations and amendments that resulted in the bill – AB 327 (Perea) – including many strong provisions for rooftop solar. If approved on concurrence back in the

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September 11, 2013 0 comment
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Residential Electric Rates Revisited – Part 1: A Historical Perspective

written by Walter Wang

Residential rates always seem to be in the news for one reason or another. These days, residential rates are the subject of pending legislation (AB 327) and an ongoing rulemaking at the California Public Utilities Commission (CPUC) (R.12-06-013). To help add some context to the discussion, we will be writing a series of blog posts to address the history of how we

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June 12, 2013 2 comments
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Interconnection Reform Clears the Way for Californians to Go Solar

written by Walter Wang

Interconnection standards are the legal rules and procedures for “plugging” a renewable energy system into the power grid. With oversight from their regulators, utilities have traditionally determined which systems may connect to the grid and how arduous that process is. As you can imagine, interconnection standards that are unclear, full of

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October 5, 2012 2 comments
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Pull a Fast One on CA Solar? We Don’t Think So

written by Walter Wang

Last week, the Vote Solar team got some news, and when we heard it, our jaws dropped. We heard that opponents are working hard in Sacramento to undo our huge solar victory at the CPUC; a victory that we worked so hard with alongside 350.org, CREDO Action, Solar Energy Industries Association, Union of Concerned Scientists, and 60,000 Californians to win.

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July 2, 2012 0 comment
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60,000 Californians Urge the PUC to Say YES to More Rooftop Solar

written by Walter Wang

With a PUC vote on the horizon, the final tally is in! Solar, environmental, public interest and science groups banded together to help Californians send nearly 60,000 messages asking the California Public Utilities Commission (CPUC) to expand a popular clean energy program called net metering.

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May 24, 2012 0 comment
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In San Diego, You Can Go Solar Without Owning a Home

written by Walter Wang

San Diego Gas & Electric (SDG&E) has filed two proposals with the California Public Utilities Commission (CPUC) that, if approved, may allow you to choose electricity generated by solar energy instead of fossil fuel-based energy, whether you own a home or not.

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February 1, 2012 1 comment
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Big Day for Solar at the CPUC

written by Walter Wang

The California Public Utilities Commission approved a batch of solar contracts yesterday — up to 544 MW worth, of which 294 MW are coming in at prices below that of building a new natural gas combined cycle gas turbine. That’s a lot of solar, at a great price.

SDG&E is buying 96-150 MW, a project developed

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December 16, 2011 1 comment
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Victory for Solar-Friendly Rates in PG&E Territory

written by Walter Wang

The California Public Utilities Commission voted down proposals by PG&E that would have been a big step backward for solar customers. The two major victories were 1) the CPUC opted to maintain its 4 tier rate structure, wherein high usage customers are given a strong price signal to

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May 27, 2011 2 comments
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Report: CA Energy Efficiency Policies to Create Over 200K Jobs, but Could be Improved

written by ecopolitology

California’s energy-efficiency policies will create over 200,000 jobs by 2020, but the state could be creating more and better-quality jobs.

The Don Vial Center on Employment in the Green Economy, part of the University of California-Berkeley’s Institute for Research on Labor and Employment, released a

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March 21, 2011 1 comment
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Your Electric Meter: A Villain or Hero?

written by Elisa Wood

Before energy became a hot topic, no one cared about the electric meter. It was the box on the house we all ignored except the guy from the utility who dodged the barking dogs to take a reading from it once in awhile.

It is a sign of our times that this box now inspires enough emotion for people to take

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February 24, 2011 2 comments
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Renewable Energy: Too Expensive or Cost Effective?

written by Walter Wang

Is renewable energy more cost effective than fossil fuels? Or is it more expensive?

Well, a recent Los Angeles Times article reported that, according to the results of a draft report issued by the California Public Utilities Commission (PUC) in 2009, incoming governor Jerry Brown’s goal of 33 percent renewables by the year 2020

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December 21, 2010 2 comments
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