California Increases Net Metering Cap to 5%

On February 26, Gov. Arnold Schwarzenegger signed legislation (AB 510) to allow more Californians to sell renewable electricity back to their utilities at retail prices. The legislation doubles the aggregate participation cap that California’s investor-owned utilities must buy back from net-metered customers. Previously, state law required electric companies to sign net-metering contracts for up to only 2.5% of their load, a cap that many utilities were nearing, but this legislation has increased the cap to 5%.  Around 50,000 California homes currently benefit from net-metering, a number that would need to grow rapidly if the state is to reach its goal of obtaining 3,000 megawatts from rooftop solar.

Source: Los Angeles Times Report

Laurel Passera

Laurel is a Senior Renewables Analyst for IREC attorneys Keyes, Fox & Wiedman, and engages in research and analysis of net metering and interconnection regulatory trends to support IREC’s outreach and communication efforts. In 2009, Laurel was a Southeast Regional Network fellow for the Southeast Environmental Leadership Program and currently sits on Raleigh City Council’s Environmental Advisory Board.