Background
- Electric Rule 21 is a tariff that describes the interconnection, operating and metering requirements for generation facilities to be connected to a utility’s distribution system. Rule 21 governs CPUC-jurisdictional interconnections, which include the interconnection of all Net Energy Metering (NEM) facilities, "Non-Export" facilities, and qualifying facilities intending to sell power at avoided cost to the host utility. Rule 21 does not apply to the interconnection of generating or storage facilities intending to participate in wholesale markets overseen by the Federal Energy Regulatory Commission (FERC).
Highlight
- Interconnected153 distributed generation within the three investor-owned utilities service territories totaled 1,595 megawatts (MW in alternate current) in 2021, an 18.7 percent increase from 2020. Residential continues to be the largest sector, accounting for 72 percent of the interconnected distributed generation installed (1,148 MW) in 2021.
153 The data represent how many interconnected solar PV projects and how many megawatts are installed in a given geographic area. Calculations are based on “Application Approved Date,” and this describes the interconnection, operating and metering requirements for generation facilities to be connected to a utility’s distribution system
Opportunity
- California became the first state in the country to mandate rooftop solar photovoltaic (PV) and battery storage on new commercial and high-rise multifamily buildings according to the approved 2022 California Energy Code. The new mandate would become effective beginning in 2023.154 This could lead to a rebound in installations from the commercial sector as well as accelerating energy storage. In addition, the California State Legislature passed AB 2316 to establish community renewable energy programs (mostly community solar and storage) in order to give Californians access to clean energy and lower electricity bills, which also avoids cost transfers to non-participants and optimizes the accessibility of federal funds under the Inflation Reduction Act (IRA).155
154 Scully, J. (August 16, 2021). California agency backs solar and storage mandate for new commercial buildings. PVTech; Solar Media Ltd. Retrieved from: https://www.pv-tech.org/california-agency-backs-solar-and-storage-mandate-for-new-commercial-buildings/
155 Solar Power World. California bill requiring utilities to create community solar programs reaches governor’s desk. August 31, 2022. Retrieved from: https://www.solarpowerworldonline.com
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