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NEM transfer between selling or buying?

h2ofun

Active Member
Aug 11, 2020
3,096
675
auburn, ca
So, what is the law in Calif about NEM moving upon a sale of a home to a new buyer, or a new buyer from a seller?

So, if a seller has NEM1, is new buyer forced to NEM2?

If a seller has approval for like me, 88 panels, does a buyer get to stay approved for the same amount of panels?

And of course the wild card is what will NEM3 do to the above, if anything.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Nov 28, 2018
11,358
13,191
Riverside Co. CA
I havent been through this so can only speculate but...

1. This could be utility dependent, so different around the country.

2. A home buyer would be setting up a new account at that property, so it seems to me that they would fall under whatever tariffs are in place at the time they start their account at that property. Grandfathering for account tariffs is likely between the current homeowner and the utility. I doubt one could advertise the home as having a specific rate structure while trying to sell it.

3. Solar panels are physical items attached to the property, so whatever is permitted there is part of the property, and authorization to use them from the utility wouldnt be any different than authorization to use electricity from the utility, etc, as long as no other changes were made.

What rate structure they would fall under, etc, is unlikely to be protected, but usage of the items is probably attached to the property, so "PTO is PTO", but what rate the new owner pays or gets credited at is another matter entirely.

These are just my opinions though.
 
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h2ofun

Active Member
Aug 11, 2020
3,096
675
auburn, ca
I havent been through this so can only speculate but...

1. This could be utility dependent, so different around the country.

2. A home buyer would be setting up a new account at that property, so it seems to me that they would fall under whatever tariffs are in place at the time they start their account at that property. Grandfathering for account tariffs is likely between the current homeowner and the utility. I doubt one could advertise the home as having a specific rate structure while trying to sell it.

3. Solar panels are physical items attached to the property, so whatever is permitted there is part of the property, and authorization to use them from the utility wouldnt be any different than authorization to use electricity from the utility, etc, as long as no other changes were made.

What rate structure they would fall under, etc, is unlikely to be protected, but usage of the items is probably attached to the property, so "PTO is PTO", but what rate the new owner pays or gets credited at is another matter entirely.

These are just my opinions though.
All make sense, just hoping someone has actually been through either of both processes to know for sure.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Nov 28, 2018
11,358
13,191
Riverside Co. CA
Anyone who has bought a property with existing solar on it would be able to chime in and say what their experience was. Perhaps some of our members have recently bought a house (or 2nd home, etc) that had existing solar, who could share their experience.
 
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wjgjr

Active Member
May 11, 2020
1,349
1,061
Silver Spring, MD
Also, check the interconnection agreement for a clause on transfers and termination. It might have some answers to this.

Different state, but ours (which appears to be standard language throughout the state) covers transfer of ownership and provides that the agreement terminates unless the new owners notify the utility of the change and accept the terms and conditions of the original agreement. (It says it should be done prior to or when changing service but also appears to provide a 30-day grace period.) A part of that agreement includes granting us access to net energy metering. So, as I understand it, a new owner would be able to continue with the NEM credits as long as they complete the appropriate paperwork. This will potentially become important in MD in a few years when we hit the NEM limit (10% of power.) Of course, MD does not have nearly as complex set of rules, programs, and tariffs as CA.
 
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h2ofun

Active Member
Aug 11, 2020
3,096
675
auburn, ca
Also, check the interconnection agreement for a clause on transfers and termination. It might have some answers to this.

Different state, but ours (which appears to be standard language throughout the state) covers transfer of ownership and provides that the agreement terminates unless the new owners notify the utility of the change and accept the terms and conditions of the original agreement. (It says it should be done prior to or when changing service but also appears to provide a 30-day grace period.) A part of that agreement includes granting us access to net energy metering. So, as I understand it, a new owner would be able to continue with the NEM credits as long as they complete the appropriate paperwork. This will potentially become important in MD in a few years when we hit the NEM limit (10% of power.) Of course, MD does not have nearly as complex set of rules, programs, and tariffs as CA.
Hard to believe any utility in Calif would allow unless forced to by the CPUC. Just like Prop 13 for property taxes, you buy , you get to pay taxes on purchase price. :(
 

wwhitney

Active Member
Nov 2, 2017
1,007
1,378
Berkeley, CA
From my July, 2018 PG&E Form 79-1193 "AGREEMENT AND CUSTOMER AUTHORIZATION Net Energy Metering Interconnection For Solar And/Or Wind Electric Generating Facilities Of 30 Kilowatts Or Less with Energy Storage of 10 Kilowatts Or Less"

N. Term of Agreement

This Agreement shall become effective as of the date of PG&E’s issuance of the permission to operate letter after receipt of all applicable fees, required documents, and this completed Agreement. This Agreement shall continue in full force and effect until terminated by either Party providing 30-days prior written notice to the other Party, or when a new Customer takes service with PG&E operating this approved generating facility. This new Customer will be interconnected subject to the terms and conditions as set forth in Schedule NEM.

Cheers, Wayne
 
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h2ofun

Active Member
Aug 11, 2020
3,096
675
auburn, ca
From my July, 2018 PG&E Form 79-1193 "AGREEMENT AND CUSTOMER AUTHORIZATION Net Energy Metering Interconnection For Solar And/Or Wind Electric Generating Facilities Of 30 Kilowatts Or Less with Energy Storage of 10 Kilowatts Or Less"

N. Term of Agreement

This Agreement shall become effective as of the date of PG&E’s issuance of the permission to operate letter after receipt of all applicable fees, required documents, and this completed Agreement. This Agreement shall continue in full force and effect until terminated by either Party providing 30-days prior written notice to the other Party, or when a new Customer takes service with PG&E operating this approved generating facility. This new Customer will be interconnected subject to the terms and conditions as set forth in Schedule NEM.

Cheers, Wayne
so could a new buyer stay on NEM1 if that is what the seller had?
 

miimura

Well-Known Member
Aug 21, 2013
6,677
6,509
Los Altos, CA
so could a new buyer stay on NEM1 if that is what the seller had?
Yes, that is what the NEM1 tariff says. It is subject to the original 20 year term established at the original PTO. It is also subject to the other terms like allowed repairs and upgrades limited to the greater of 10% or 1.0kW CEC AC rating.
 

arnolddeleon

Supporting Member
Supporting Member
Jul 21, 2012
928
1,006
SF Bay Area
I don't have a PG&E data point (I haven't sold any of the properties in PG&E land). I do have experience in Glendale AZ which had a similar transfer clause. I was able to buy a property that was on the good AZ net metering tariff (full 1:1). It's one the few potential upsides of buying/inheriting an existing PV system.
 
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