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Rooftop Solar’s Changing Role in California’s Energy Transition
For more than 20 years, California has aggressively supported the rooftop solar market through its Net Energy Metering (NEM) program in Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric Company (SDG&E) territories.
NEM has driven record deployment of distributed generation as a result.[1]
NEM has enabled 1.3 million customers to install roughly 10,000 megawatts of customer-sited renewable generation, almost all of which is rooftop solar
NEM systems reduce the demand on the electric grid by as much as 25 percent during midday when the sun is shining.
NEM has helped California make significant progress toward meeting its climate goals, but now that California has nearly 25 gigawatts (GW) of solar on our grid, needs have shifted. It is now essential to address grid reliability shortfalls during “net peak”[2] hours in the early evening when the sun is down and we rely on fossil fuels to meet demand.
Transforming NEM will ensure household solar+storage adopters are a part of the solution to meeting California’s urgent climate goals by reducing load and/or exporting energy during net peak.
By modernizing NEM, California can incentivize distributed storage and promote electrification, which will provide more value to the electric grid and help California meet its ambitious climate goals even faster. for full story follow this link