PSE Extends Net Metering
Net Metering Extended for PSE Customers
If you are a customer of Puget Sound Energy (PSE) and are thinking about going solar, we have exciting news for you. PSE has formally extended net metering “to Customers that have applied for interconnection of a new or modified Net Metering System until December 31, 2025, or when a replacement Net Metering schedule is in place for new Net Metered Customers, whichever is later.”
LEARN: Net Metering
A Little Background
Washington State law establishes a minimum net metering requirement that applies to all utility companies within the state. This standard requires each utility to net meter to a minimum 4% of their 1996 peak load from 1996. Why this is the level set is very complex, and not really worth going into here. What is important to note is that once this requirement is fulfilled, utility companies have the option to transition to an alternative rate for surplus solar energy that is exported to the grid. However, it is not mandatory for them to do so. As the end of 2023 approached, it became evident that PSE was on the verge of reaching their net metering threshold.
UTC Approves PSE Request
Because PSE is an investor-owned utility regulated by the Washington Utility and Trade Commission (UTC), they were obligated to formally request approval to continue full retail rate net metering. They submitted their formal request on December 20, 2023. And after thorough evaluation by UTC staff, they recommended approval of PSE’s request.
The complete text of the UTC staff recommendation can be accessed here.
A noteworthy comment in the report states: “Staff believes that a unified statewide approach to the future of net metering would be more favorable than each utility adopting a different approach after reaching the 4 percent threshold.” This comment is a reference to the Value of Solar study desired by both PSE and the Washington solar industry.
READ: Funding for Comprehensive Value of Solar and Storage Approved
On February 22, 2024, the UTC Commissioners granted the approval with a few conditions relating to a cost analysis to be completed by PSE by December 31, 2024.
Access: PSE Net Metering Schedule 150
What This Means for You
PSE’s commitment is significant because it provides the transparency and assurance you need to make a well-informed decision regarding a solar investment over the next two years. Additionally, it serves as a protective measure against unethical marketing strategies employed by mostly by out of state companies – such as pressuring potential clients into signing contracts by, among other deceptive practices, falsely claiming that net metering will soon come to an end. The formal extension also provides essential information to the solar industry, supporting crucial decisions related to business and workforce development. Ultimately, this helps sustain small businesses and ensures the availability of decent-paying jobs throughout the state.
Kudos
Fire Mountain Solar would like to express gratitude to PSE for their forward-thinking approach to solar policies. This approach not only aligns with the growing desire of customers to generate their own power, but also acknowledges the significance of rooftop solar in promoting the adoption of clean energy. We would also like to extend our appreciation to the UTC for granting additional time for the solar industry and Washington’s largest utility to establish a fair and equitable compensation rate for exported solar energy through the Value of Solar study. This extension enables the continued growth of solar adoption while the VoS is being finalized, allowing for the development of a plan that benefits underserved communities through the utilization of solar power. Furthermore, we commend the UTC for recognizing the importance of a statewide solution rather than implementing individual net metering solutions for each of Washington’s 60+ utilities.