Rooftop Solar Incentive to Cost Customers Without Solar an Estimated $8.5 Billion by the End of 2024

Overview

California’s main rooftop solar incentive program (known as net energy metering or NEM) will cost customers without solar an estimated $8.5 billion by the end of 2024, a figure that has more than doubled since 2021. The recent cost increases are driven by: (1) a surge in interconnections of new rooftop solar systems prior to the phase out of unsustainable program compensation terms, and (2) higher compensation to rooftop solar customers for the energy their systems generate.

This fact sheet provides an overview of net energy metering, our cost shift methodology, and discusses how the cost shift can be addressed going forward.

Download: 2024 Net Energy Metering Cost Shift Fact Sheet
Download Accompanying Excel Spreadsheet: Cost Shift Methodology Calculations