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The tariff change in Hawaii also differs from Nevada in the sense that the new rate for selling back excess power, while roughly half of the retail rate, is still 15 – 28 cents per k Wh[3] (due to the high wholesale energy rates in Hawaii) and likely still valuable enough to justify many PV projects.

But the new rates are only applicable for the next two years making investment in solar a very difficult decision considering the 20 – 30 year life cycle of projects.

Solar City currently holds Nevada’s largest market share for residential solar.

One of the more contentious details following the rulings was the rejection of a “grandfathering” rule which sought to make current solar producers already under the old net metering tariffs, and who invested in their systems under the impression that net metering rules would not dramatically change, exempt from the new tariff changes.

Without net metering, and considering the gradual plateauing trend of installation cost reductions, many are speculating that demand response and storage mechanisms, such as generation-coupled batteries, will be the future of helping to monetize the energy value of customer-sited distributed solar and maintain favorable economics and incentive for consumers to go solar.

Customer-sited demand response technology is at a very young stage in its development and deployment and the costs reflect this, but looking at the trend of solar cost reductions in the last 10 years it’s easy to imagine a similar industry boom and increase of accessibility for this newer technology.

The new tariff institutes a new, higher fixed monthly charge (i.e.

independent of energy use) for net metering customers and implements a tiered de-escalation of the ‘credit’ these customers receive for their excess generation.

The idea is that as solar costs continue to drop and project economics remain buoyed by the ITC, the case is stronger for utilities to claim losses and expenses as a result of increasing solar adoption.

In keeping with what seems to have become a semi-annual tradition, the Section 45 Renewable Energy Production Tax Credit (PTC) was resurrected at the end of 2015.

The Consolidated Appropriations Act, 2016 passed in early December retroactively renewed the PTC through the end of 2014.

But typical residential consumers, who by-and-large aren’t home in the middle of the day, have relatively small home loads at these times.

When systems produce excess power because of low load demand, that power is delivered back to the grid and the meter is ‘credited’ for the delivered energy during the day.