WATER AND
POWER
Solar Net Billing
New Solar Program Update
City Council
January 14, 2025
Net Energy Metering (NEM) Background
NEM “1.0” (est. 1995)
Required as a solar rate structure until total
installations meet 5% of peak demand
Billing
Customers billed on net energy delivered to
customer and excess energy received by BWP
Credits
Compensation for excess energy
(more than 100% of usage) as kWh credits
2 No Changes for Current Solar Systems
Same Rates
Current solar customers
can keep their existing
rates
Continued Support
Grandfathered for up to 20
years
3 The Future of Solar in Burbank
Burbank Water and Power (BWP) is exploring a new
customer solar program that aims to:
1. Fairly compensate for solar exported to the grid
2. Increase size caps and simplify the approval process
3. Encourage more efficient use of solar and battery storage 4 What prompts enrollment in the new
program?
Adding PanelsNew Solar Customer
If a new system is installed
or a property with existing
solar is sold or transferred
Increasing the size of
an existing system
5 Net Energy Metering Solar Net Billing
What’s Different?
• Moves to a time of use (TOU) rate
• Removes concept of energy credits
• Instead of energy credits (in kWh), customers receive bill credits (in $) for electricity exported to the grid • Customers will be compensatedat BWP's avoided
cost of energy (ACOE) rate, which varies by season
and time of day
6 to
Avoided Cost of Energy
7 Avoided Generation Renewable Attribute
5.96 ¢ - 10.86 ¢ 1 ¢
Retail Rate for Energy Delivered by BWP
8 Generation Renewable Attribute Utility Cost to Serve
Customer Rates on Solar Net Billing
Residential
Tiered
(¢/kWh)
Time Period
Customer
Retail Rate
(¢/kWh)
ACOE
Compensation
Rate (¢/kWh)
Tier 1
<300kWh/mo
14.72 Tier 2
>300kWh/mo
22.49 Winter Off-Peak
11 PM – 8 AM 11.78 6.96
Summer Off-Peak
11 PM – 8 AM 11.78 7.02
Winter Mid-Peak
8 AM – 11 PM 21.13 6.96
Summer Mid-Peak
8 AM – 4 PM &
7 PM – 11 PM
21.13 8.25
Summer On-Peak
4 PM – 7 PM 32.44 11.86
9 10
Program Comparison
NEM 1.0 Solar Net Billing
Annual Check for Excess Credits
Performance Meter
Time of Use Rate
1 MW Size Limit
5 MW Size Limit
Oversizing Allowed
No Size Review for Systems
under 10kW
Simplified Interconnection
Agreement
Recommendation
11 BWP requests that City Council approve:
1. The transition from the current NEM 1.0 solar program to the Solar Net Billing program; and
2. Approve the methodology for determining the
avoided cost of energy (ACOE); and
3. The GM to make administrative changes to the
methodology.
Drew Johnstone
Sustainability Officer
[email protected]
(818) 238-3791 office
Drew Kidd
Marketing Associate
[email protected]
(818) 238-3653 office
CONTACT