Questions about NEM 2.0 and TOU

[sarge_in]

So I have read several articles for NEM 2.0, but still have a couple questions regarding how that interacts with TOU.

1) Does the true-up/balancing process happen in terms of kWh generated/used, or in $ terms by considering the time energy was produced/used? I am in SCE area, not sure if that matters.

Let's forget about the NBC's for the sake of this argument (which I am well aware I will need to pay under NEM 2.0).

Hypothetical TOU plan:
Non-Peak: $0.20 per kWh
Peak: $0.30 per kWh

Let's assume that for the month my solar power GENERATION (1000 kWh) was ALL during Non-Peak hours, and my CONSUMPTION (1000 kWh) was ALL during Peak hours. So what will my electricity bill for the month be (disregarding rolling credits and NBC's etc. to keep things simple).

Will my bill be $0, since generation = consumption = 1000 kWh?
Or will it be consumption$ ($0.30 * 1000 = $300) - generation$ ($0.20 * 1000 = $200), for net bill of $100 ($300 - $200)?

2) In above example if generation 1500 kWh, how am I reimbursed for the excess amount I generated? Is it at the $0.20 rate during the period it was generated, so $0.20 * 500 = $100? Or something different?

3) What does grandfathered into NEM 2.0 mean? Does it freeze the specific rates ($0.20 and $0.30 in above example) for whatever number of years, or just the concept that I will pay as per the TOU plan I choose at time of going solar, but actual rates in that plan may still go up, perhaps as early as next year?

Thanks!

 

[jjrandorin]

Ill take a shot...

1. Its not "kWh used in and out" its dollar value of the kWh when it was generated vs when it was used. In your example above, not counting the NBCs (which we cant do anything about anyway) your second example would be correct. You would have a net bill of $100 in that example, that would go on your account. You will be billed the total after a 12 month period. You have to pay a monthly bill anyway, but it only includes the NBCs and delivery I think, not consumption.

Also, as you know the Peak vs non peak delta may be higher than that, depending on which TOU plan you are on.

2. you are compensated for energy put into the grid at the same rate it would be if you were using it from the grid at that specific time. So, if you are in off peak time, in your fictitious example above, you would be compensated 20 cents a kWh for energy you put in during off peak. Since (in your example) you didnt put any energy in during peak, you would not receive any credit at peak rates. "Peak" is 4-9 or 5-8pm so dont plan on putting much energy into the grid at "peak" anyway from solar.

3. Grandfathered NEM 2.0 means the concept and framework of your TOU plans wont change, but the rates absolutely, positively 100000% WILL change. Being grandfathered into the NEM 2.0 just means the structure of your NEM agreement wont change. Rates themselves are not frozen.

I am granfathered into NEM 1.0 (so dont really have NBCs) but the rate I am billed for my tiered (non TOU) energy has changed from base of 15cents a kWh to the current 21 cents a kWh. I am also on SCE.

 

[sarge_in]

Great, thanks for the clear responses!