Why Waiting On Energy Storage Could Be Very Costly

Learn the 3 biggest reasons you should be questioning why you don’t have an energy storage system

Risk of waiting on energy storage

Being Grandfathered into Net Metering May Not Be What You Think

The Value of Your Credits are Not Guaranteed

There is a common misconception that being grandfathered into net metering means the current credit amount you receive for power now is locked in for the next 20 years.  However, that is not the case.

Net metering allows you to get a credit for the power you send back to the grid, however it does not guarantee how much that credit will be worth.

For example, the process of reducing the value of net metering credits was highlighted this summer, when SDG&E increased peak power costs by 50%, thus effectively reducing the value of net metering credits during non-peak hours.  Some experts are predicting this trend will only continue, with the effective value of credits continuing to reduce as solar owners continue to be targeted by utilities.

Net Metering only allows you to receive a credit; it does not guarantee the value of the credit.

California Utilities Are Lobbying for Zero Credit Policy

Like Hawaii and Arizona have already passed, California utilities ultimate goal is a zero credit policy.  In these cases the grid will not take any power and the inverter shuts down when solar is overproducing.

The electric utility industry is the third-largest lobbying force in the U.S., after pharmaceuticals and insurance companies.

The utilitie make large campaign contributions to candidates who support their financial interests, which include rolling back net metering. One utility alone, Arizona Public Service, engaged in $130 million of lobbying and political spending from 2013 to 2018. The company recently acknowledged that in 2014 it funneled $12.9 million to political groups that helped elect two of the state’s utilities commissioners. Not surprisingly, the Arizona commission voted to end net metering in 2016.

Since 2013, net metering has also been phased out in Hawaii and more recently in Connecticut, Indiana, Kentucky, Michigan, and New Hampshire. Solar permits in Hawaii were down sharply within two years of its phase-out, and the same pattern could play out in the other states.

A negative utility bill will be a thing of the past

Many Solar owners don’t know this but utility companies hate it when you receive a negative utility bill.  Utilities are losing thousands of dollars in revenue to solar owners and that is going to change.

SDGE has started a slow march towards getting Solar owners to pay the utilities.  They first started with Time of Use, to increase rates when the sun is no longer shining.  Now they are lobbying for an increase in the minimum energy fee.

SDG&E has submitted the proposal to the California Public Utilities Commission, which is expected to decide by spring of 2020.

According to SDG&E, the proposal would ensure that solar and low-use customers pay their fair share for the operation and maintenance of the power grid. Skeptics say it’s nothing more than a profit scheme designed to discourage homeowners from going solar.

SDG&E is an investor-owned and very much for-profit utility. Its parent company, Sempra Energy, reported second-quarter 2019 earnings of $354 million earlier this month.

This is only the start of the onslaught against solar panel owners.

San Diego Gas & Electric wants to raise its minimum utility charge from $10 to $38 per month.

Aging Grids and Increased Wildfires, Increase BlackOut Risk

According to Department of Energy information, the U.S. has more blackouts than any developed world nation.  This is due to its aging electric grid. The U.S. Department of Energy’s 2015 report showed that at least 70 percent of its power transformers are more than 25 years old, 60 percent of the circuit breakers are a minimum of 30 years old and 70 percent of the transmission lines were at least 25 years old.

In 2003, a tree branch caused a power line to fall in Ohio, which resulted in more than 50 million people in the U.S. and Canada to suffer from cascading blackouts. If the system was weak, overwhelmed and vulnerable back then and no upgrades have been made since then, imagine what it’s like now.

Think about it. What would you do if the power went out for an extended period of time, more than you have ever experienced before?

Many of the most deadly and destructive wildfires in California have been blamed on utility equipment. The state’s largest utility has a plan that involves cutting the power in very windy days when wildfire season is in full effect. This would lead to millions of people being in the dark, which they are not prepared for.

On top of that, other investor-owned utilities have created shut-off programs themselves.

For example, PG&E came up with its plan after a transmission line broke during windy weather, which is thought to have contributed to the state’s deadliest fire “Camp Fire.” Though it stops one problem, it means California residents must find ways to deal with potential blackouts… not just for hours, but days.

Six of California’s 10 most destructive fires have occurred in the last two years. They’ve also killed more than 120 people and resulted in a shutdown of major sections of the electrical grid.

When San Diego Gas & Electric’s equipment sparked three huge fires in 2007, the utility sought for permission to turn off power in high-risk conditions. Permission was granted! And, in response to the overwhelming 2017 fires, the shut-off requirements were extended to other investor-owned utilities.

Once power has been turned off, the companies must investigate all de-energized lines, and doing this can take days even after weather conditions have gotten better. Local officials, residents, and business owners were upset when both Southern California Edison and PG&E turned off the power, shutting down schools, businesses and stores.

We’re worried about it because we could see people’s power shut off not for a day or two but potentially a week. – Gavin Newsom Governor

Spend 30 minutes with an Energy Storage Specialist

Have one of NeoVolta’s certified installers send an energy specialist out to assess your current configuration, location and power usage and give you an evaluation of what energy storage can do to help you protect against unpredictable utility pricing and grid reliability.


I don’t normally post reviews, but I wanted to let everyone know how excited I am to find Neovolta and their Energy Storage Battery System. Their team is super knowledgeable and I am finally looking forward to next month’s utility bill.

Kate Hope5 Star Google Review

“It works like a champ charging my battery during the day so I can use the battery power during the evening when SDG&E charges double for their power ($.47 per Kwh from 4:00 pm to 9:00 pm verses $.22 per Kwh during the day). Without the battery I had no choice but to use SDG&E power in the evening at their super high rate.”

Brad Hixson5 Star Google Review

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