Network Use Charge to overcome residential solar savings?

Well, there are no guarantees in life but we had a similar skirmish last year in Arizona where APS sought a similar absurd fee. In that case, existing solar customers were to be grandfathered and wouldn't have to pay it at least for 20 years or remainder of the lease. Even with a business-friendly all Republican Corporation Commission, APS was only able to get $5/mo from new solar installs but I'm sure they'll be back at the trough although even such a small fee may have had an effect as solar installs are apparently down considerably since the fee went into effect.. Now typically, those sorts of fees are passed onto the lessee by the lessor because the lease agreements are written specifically to do so.

IMHO, that $100/mo fee is an example of asking for the moon but settling for much less.

this is an oft used ploy and 90% of the consuming public buys into it. Utility companies (not just solar) ask for ridiculous price increases to get the public all riled up .. then they say something along the lines of "oh after further review we don't need so much we can settle for less than we originally "estimated". then the gullible consumer says "oh cool we can live with that since it's not so much) LOL

I have read several articles where power companies are starting to go down the path of a monthly "fee" for solar installs. don't think they have been very successful however.

1.) One of the stated goals somewhere in AB 327 - the rate reform bill that is now law - is to in lower the upper tier rates and raise the lower tier rates. How that all will shake out won't be known for probably 6 to 18 month or so, maybe longer.

2.) If this rate leveling comes to pass, high usage customers in some situations will see their bills decrease. Honest ! Whether you know it or not, rates are complicated and are changing all the time. I try to keep a pretty good tab on SDG & E rates. Believe it or not, they actually go down once in a while. There were small adjustments in Feb. & May of 2014 that lowered the upper tiers and raised the lower tiers some. I'd guess this has something to do with the jockeying that will go on once rate proposals before the CPUC get serious with respect to AB 327 mandates/deadlines. Anyway, those adjustments were enough to effectively wipe out most or all solar savings for a neighbor of mine whose monthly solar lease cost was close to 1/12th of the old annual bill. The lease may now cost more than the electric bill would have been without the lease. Close, but maybe higher, depending on how much they now conserve.

Lesson: If you are a high usage customer and you're thinking about a lease, keep in mind your rates will change and your bills may go down making the lease less cost effective.

3.) Folks, including utility execs., sometimes talk a better game than they know about. I'm sure they'd like $500/mo. if they could get away with it. My cynical nature sez the fix is already in and we'll all find out in good time.

4.) Depending on how the lease is written, anything is possible. Read the fine print.

5.) There is enough emotion on all sides that fuels hyperbole, deception and rancor. The first casualty, like in war, is the truth. Read some posts about how solar customers are freeloaders or how utilities are the devil incarnate and look for any objectivity. Kind of hard to find sometimes.

Don't forget to add how a lot of people are gullible and will easily believe deception if it hits a moral issue or scares them.

Assuming someone won't like this - and so with apologies to those who signed a lease and knew what they were doing - I'm trying to keep my opinions to myself about some of those people you mention who lease and fearlessly seem to claim the moral high ground of lease now, own nothing, pay for 20 yrs. to some Wall street banking slug and probably limit their future options some.

Just a point or two. First, if solar fees are introduced, it's quite likely that existing solar customers would be grandfathered and not have to pay at least for some lengthy period of time. In Arizona, grandfathering was in the utility's intial monthly fee proposal. Now the cynic in me suggests they did that to split opposition to their proposal.

As for the effect of new rate structures that make solar less attractive: it doesn't affect just leases but purchases as well. Do you really think someone who has invested $25K expecting a return sufficient for payback in 7 years is going to be happy if that period doubles? Talk about buyer's remorse! Even worse if they borrowed to buy.

Truth to executive quote

YOUR QUESTION: I would say that it is true, utility companies are jockeying to snub out solar, its like the electric car to Detroit. Every see the movie "Who killed the electric car" ? That Put the world back 20 years! and Utilities will get a FEE on us in the future, for future solar users. But I also agree with those that say you will be grandfathered in. So just like rebates had 10 levels, and now all rebates are gone for some areas leaving only the Federal incentive, I say do it now IF, and only if you are saving money. Do the calcs yourself.

MY CASE: A month ago I decided to look at solar and was sure I wanted to do a DIY 1/2 system that would simply keep me out of Tier 3&4. Found it would cost me about $7000 in materials and then I'd be on the hook for installation and maint. Being unemployed currently I looked at other options and seemed to find an option that sounds too good to be true. - for $500 I can be locked into YESTERDAYS rates for 20 years on a solar system that will cover 94% of my usage! Yesterday being up till June, as in July SCE raised Tier 1&2 rates by 16% and 18% respectively, bringing my average cost per kwh from 0.171 to 0.189 (10% overall increase). The NRI seemed pretty good on the scenarios considering I am still saving a fair amount with little down. See below tables:

Savings_Tables.jpgSCE_Rates.jpg