‘Their recipe for incentivising batteries is to punish solar’: CALSSA exec hits out at California NEM proposal

Facebook
Twitter
LinkedIn
Reddit
Email
The proposal would cut export rates by almost 80% in an effort to encourage distributed energy storage. Image: REC Solar.

The California Public Utilities Commission’s (CPUC) most recent net energy metering (NEM) proposal is too extreme and will discourage homeowners from adopting residential solar, according to Bernadette Del Chiaro, executive director of clean energy business group the California Solar and Storage Association (CALSSA).

Speaking to PV Tech, Del Chiaro said that “instead of accelerating batteries, all we’re doing is decelerating solar”. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The most recent iteration of the proposed NEM 3.0 legislation incentivises battery storage alongside rooftop solar by proposing time-specific energy rates, higher ones at peak evening times and lower rates in the day. It also forecasts US$136/month savings for residential solar-plus-storage customers compared with US$100/month for standalone solar customers.

The most controversial measure, however, has been a near-80% cutting of export rates for residential solar customers. The current rate is US$0.30/kW, but the proposal would reduce this to US$0.08/kW.

Reactions across the industry have specified the need for a gradual glide path to lower export rates and thereby encourage storage.

“When you really crunch the numbers, which we’ve been taking the time to do, it doesn’t move the needle on energy storage,” Del Chiaro said.

In its original proposal for the NEM 3.0 legislation, filed in March 2021, CALSSA highlighted the importance of energy storage to the California grid and for meeting the state’s greenhouse gas targets. Distributed storage was cited as a key way to deal with increased load on the grid from electrification.

However, CALSSA’s original proposal said: “Limited battery availability and high soft costs for storage projects remain barriers to full-scale storage deployment, and the Commission must allow time for the distributed energy storage market to mature.”

CPUC’s November proposal said that its measures “allow for a transition period for the solar industry to adapt to a solar paired with storage marketplace”.

For Del Chiaro, the most recent proposed decision doesn’t fulfil this. “It’s like their recipe for incentivising batteries is to punish solar,” she said. Drastically decreased export rates will make domestic solar markedly less affordable for Californians.

A recent EY report identified decentralised grids and distributed solar as key to the implementation of renewable energy in developed countries. Wood Mackenzie research in October said that the US rooftop solar market was in growth mode, but the Californian NEM proposals were one of the factors that may pose challenges in the future given the state’s historically dominant position in the market.

13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.

Read Next

July 1, 2026
Waaree Energies has issued a clarification in response to a US Customs investigation into possible evasion of AD/CVD duties on crystalline silicon PV cells from Vietnam and Malaysia.
July 1, 2026
SK Inc and KKR have agreed to establish a KRW2 trillion (US$1.29 billion) renewable energy platform that will combine 1.7GW of operating generation assets.
July 1, 2026
A 1GW concentrated solar-PV hybrid complex built by China Three Gorges Corporation in Hami, Xinjiang has completed commissioning and entered commercial trial operation.
July 1, 2026
Canadian independent power producer (IPP) Boralex and its Swiss investor partner, Energy Infrastructure Partners, have secured €1.45 billion (US$1.65 billion) in financing to support Boralex's renewable energy business in France.
Premium
July 1, 2026
The US ITC has found North Carolina-based Voltage Energy in violation of two patents owned by Tennessee-based eBOS manufacturer Shoals.
June 30, 2026
First Solar is facing a class action lawsuit from shareholders over its response to US tariff policy and alleged “misleading” statements about its resilience to the shifting policy landscape.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye