‘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.

Read Next

October 29, 2026
Western Australian government has set a target for renewables to supply 75% of SWIS electricity generation by 2030-31.
October 28, 2026
Enphase Energy has reported Q3 revenue of US$293.3 million, up less than 1% from US$291.9 million in the previous quarter.
October 28, 2026
Corning reported a 37% year-on-year increase in solar segment sales to US$436 million in the third quarter of 2026.
October 28, 2026
Maryland governor Wes Moore has announced the launch of 'Megawatts for Maryland', a US$200 million clean energy auction programme.
October 27, 2026
Trinasolar will supply 580MW of solar modules and fixed-tilt mounting systems for four utility-scale solar projects in Poland and Lithuania.
Sponsored
October 27, 2026
Tongwei Solar's TNC 2.0 FULLX G12R-48 is designed for rooftop applications with varying available space and aesthetic requirements.

Upcoming Events

Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye