You may be asking yourself, what is virtual net energy metering and how does it affect me? Virtual net energy metering, or VNEM for short, is a tariff arrangement in California that allows a multi-metered property owners to allocate the property’s solar energy credits to those that use the energy, the tenants. Using VNEM, the benefits of solar on a property would be directly given to tenants rather than solely to a property owner or landlord. The intention of this policy was to provide the benefits of solar to low-income tenants in affordable housing complexes which would significantly reduce the tenant’s energy bill through the direct use of solar energy.

What is changing is simple: the proposed ruling limits how much electricity produced by solar can be self-consumed by multi-meter properties. Through this policy, tenants and property owners would effectively be selling the power produced by their solar array to the utility and then would have to buy it back at higher rates.

Furthermore, under California Title 24, developers are required to have their building comply with a certain energy efficiency standard which is often met by installing solar energy. Under the new VNEM ruling, landowners and developers installing solar arrays, to comply with Title 24, will not see the full direct benefits from installing solar and instead will see a loss in return on their investment as energy from their solar array flows directly back to the grid to be resold by utilities. This ruling by the Public Utilities Commission has one winner, the utility companies.

If you live in a multi-metered property in California, the VNEM ruling has the potential to gradually elevate your electricity expenses, diminish your control over power management, and further consolidate the utilities’ influence over your energy supply. Should this decision be granted approval, you’ll find yourself bound to buy energy from your very own solar array at an escalated price.

As a property owner of a multi-metered property, such as an apartment complex, your tenants will see higher energy costs over time even if you invested to install a solar array on your building. Furthermore, if installing a solar array is no longer worth the investment for your building, you may have to look at alternative ways to comply with Title 24 that would be more beneficial to your business.

One of Governor Newsom’s main goals for his administration is to address the cost of living and make California more affordable. The VNEM ruling would directly counteract the Governor’s efforts by allowing the utilities to gain more control over power costs, solar credits, and monthly power bills, moving them closer to a monopoly.

Many Californians have already voiced their opposition to the proposed VNEM policy directly to the Commission through public comments at a CPUC meeting on August 10th. Among those who took the stand against this policy was Jim Sprouse, the Chief Revenue Officer at SolarTech. Jim’s public comment stated when he called in,

“To voice my strong opposition to the NEM 3.0 version of VNEM. The bottom line is that it discriminates. It discriminates against lower-income citizens and renters…”

Public comments like Jim’s provide an opportunity for the public and stakeholders to express their concerns directly to the Commission in a public setting. If you want to share your concerns about this policy, you can take a stand and participate in the next CPUC voting meeting by making a public comment on September 21st. During this meeting, the CPUC will also be casting its vote on the VNEM ruling.

Another way to make your voice be heard on this issue is to contact your local assembly member and state senator. Bringing visibility to this issue demonstrates to legislators the impact the CPUC’s ruling has on their constituencies. By emailing, writing, or calling your legislator’s office you can ask the California Assembly and Senate to pay attention to the actions of the CPUC and demand action in the next legislative session.

California’s Climate Plan is often regarded as one of the most forward-thinking strategies to achieve net-zero emissions. This plan has prominently featured the widespread adoption of solar energy, ensuring fairness in the process.

However, a concerning development is the California Public Utility Commission’s proposed ruling on Virtual Net Metering (VNEM), which could diminish opportunities for low-income residents to access clean energy, discourage rooftop solar installation, and enable utility companies to profit from private clean energy investments.

Rooftop solar has been a beacon of progress in California’s clean energy landscape, but the VNEM policy threatens to cloud this progress by prioritizing utility company profits over equitable energy solutions.