Utility Company Pays You for Solar Electricity
In California a new law called AB920 was passed not long ago that will force your electric company to buy any solar electricity that you don't use (BLOG about AB920).  This law has to go into effect sometime before Jan 1, 2011 which means it will go into effect sometime in 2010. 

Remember, this does not change net metering (see also BLOG on net metering).  In the past if your solar electric system generated more electricity than you used, then the utility company got that electricity for free.  In other words you paid for the solar electric system and the extra was free to the utility company.  Of course that should never happen on a properly sized system (for more information see also Sizing a Solar Electric System).  But with this new law the utility will have to pay you for any excess electricity you don't use. 

But Wait
Now, before you go out an install that enormous, gigantic, humongous solar photovoltaic system there are many unknowns.  But the BIG unknown in my mind is what price will they pay?  Nobody knows.  That is all being worked out.  

What Will They Pay for Your Solar Electricity?
However, it seems very unlikely that they will pay the higher rates in Tier 3 or 4 rates (see also Tiered Electric Rates).  In fact it's not even clear that they will pay the Tier 1 or 2 rates.  These tiered rates are all full retail rates.  They may only pay a wholesale price or utility cost price.  Nobody knows!  So in the end this may not be that big of a deal. 

Plan Carefully and Make Informed Choices
As always it seems best to plan carefully and size your solar system properly for your needs. 




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Robert Morse
BSEE, MSEE
SunCal Solar, Incorporated
www.SunCalSolar.com