A new SepiSolar white paper reveals the financial benefits of a pending revision to California’s net energy metering (NEM) policy. When finalized, commercial DC-coupled solar-plus-storage installations will not only be able to benefit from NEM, but will also be able to increase solar system size, reduce installation and permitting costs, and quicken interconnection approval time.
Commisioned by NEXTracker, SepiSolar explores the decision and its potential benefits to builders and owners of solar-coupled storage systems. Some of these benefits include:
- For the first time in California, solar-plus-storage asset owners can export battery power onto the grid and receive NEM credits on all solar and storage exports, including those with aggregate (NEM-A) and virtual (NEM-V) tariffs.
- Developers will be able to increase the size of their projects in California beyond 1 MW.
- Developers and tax equity investors will be able to invest in solar-plus-storage projects and receive a potentially higher return on investment.
- Companies that are building solar-plus-storage projects may be able to significantly reduce interconnection and hardware costs.
- Federal Investment Tax Credit (ITC) eligibility risk, a significant challenge for tax equity financiers investing in solar-plus-storage projects, will be reduced or eliminated.
Author: Josh Weiner, CEO of SepiSolar, Consulting for NEXTracker
Technical Services Commissioned by NEXTracker