NEM 3.0 and the Future of PV Energy in California

For those who follow the solar industry, you may be hearing a lot about the upcoming switch from NEM 2.0 to NEM 3.0 and its potential impacts on renewable energy installations in California. The impacts are substantial and reflect a shifting strategy by the State in its pursuit of zero net carbon.

With over 32,000 MW of solar power installed in California – representing almost 25% of the state’s electricity and enough to power roughly 8.4 million homes – the issue of when we generate and use electricity is increasingly more urgent to focus on than simply adding more renewable energy to the grid.

To explain in more detail, Net Energy Metering (NEM) is the system by which investor-owned utilities like PG&E and So Cal Edison account for the 2-directional supply of electricity to homes and businesses that have photovoltaic (PV) panels. If you have PV panels at home, you likely generate more energy during the day than you're using, so the utility company buys the 'extra' electricity and feeds it into the grid.

Under the current NEM 2.0 and older NEM 1.0, you get paid pretty well for that electricity, so PVs have had a nice return on investment. Under NEM 3.0, which takes effect April 14, the 'buy back' rate for electricity generated in the middle of the day plummets by nearly 75%, because the utility companies have an oversupply when the sun is shining. The situation reverses in the evening and at night, when the sun is down and we're home charging our cars, turning on lights, and running our appliances. This swing in demand from the grid is often referred to as the “duck curve”.

You can see that in the time period 9am – 3pm, the net draw on the system is relatively low (and lower every year), compared to the evening hours. That's why our electric rates are most expensive from 4:00 PM - 9:00 PM. And this is where batteries come in.

If your project won’t make the mid-April deadline to get grandfathered into NEM 2.0, your best bet under NEM 3.0 will be to go ahead and install PVs, but also include battery storage. The 'extra' electricity generated during the day will be sent to your battery and reserved for your own use in the evening when rates are most expensive, which is how you'll optimize a return on the investment. A bonus is you'll have resiliency if and when the power goes out!

CALGreen 2022: New Requirements for Electric Vehicle Charging Equipment for Residential Projects

One significant change in the new CALGreen 2022 update is for Electric Vehicle Charging. With a higher expectation for providing Electric Vehicle infrastructure and equipment, you’ll want to plan early for incorporating these requirements. In this article, we will cover the updates for residential projects, then address non-residential projects in a follow-up article.

Throughout the 2022 CALGreen Code, there are varying requirements for the quantity and type of spots for Electric Vehicles. You will find these three terms used to describe them:

• Spots are EV Capable when you provide the electrical panel space, conduit (no wire), and a termination box for a future 208/240--volt, 40-amp circuit. This allows for the opportunity to install a Level 1 or Level 2 electric vehicle supply equipment (EVSE) charger.

• Spots are EV Ready when you provide a space that is fully wired and ready for the installation of a 208/240-volt, 40-amp receptacle, or charge station.

• Spots are EV Charging Station with the installation of Level 2 EVSE chargers. These should be stand-alone chargers in common-use parking areas so that building occupants can have access to it.

EVSE – Electric Vehicle Supply Equipment: Chargers that are specified based on input voltage. Level 1 EVSE are simple portable cables at 120 V (left). Level 2 EVSE are more permanently installed charger at 208/240 V that can be wall mounted receptacle or a charging station (right).

In 2022, we see no change in one- and two-family dwellings, but Multifamily (which includes hotels and motels) now has requirements based on the number of dwelling units. The new updates are described below with an example to illustrate the application.

Electric Vehicle (EV) Parking Updates for Residential

New one- and two-family dwellings and townhouses with attached private garages (4.106.4.1) are currently still required to install raceways (conduit) that can accommodate the set up for a Level 2 EVSE. They do not yet have to be installed, but the conduit should be available for future installation.

Multifamily development projects with fewer than 20 dwelling units (4.106.4.2.1): Of the total provided parking spaces, 10% must be EV Capable and 25% must be EV Ready.

Multifamily development projects 20 dwelling units or more (4.106.4.2.2): Of the total provided parking spaces, 10% of spaces must be EV Capable, 25% of spaces must be EV Ready, 5% of spaces must be EV Charging Stations (EVCS).

In terms of accessibility, one in every 25 charging spaces, but not less than one, shall also have an 8-foot wide minimum aisle, to accommodate a van. Although that space should be on the accessible path of travel and may use the 8-foot aisle of an adjacent accessible spot, it does not count as one of the van-accessible spaces per CBC Chapter 11A. For hotels, motels and public housing, reference the requirements of Chapter 11B.

Stay tuned for our update on CALGreen EV Charging requirements in the Non-Residential chapter.

Note: this article provides an overview of the EV Charging requirements; additional details and exceptions may apply to your project. Review the code sections directly, connect with the free 3C-REN Energy Code Coach service, or reach out to us.

Sizing a PV System for the 2022 Energy Code

The 2022 California Energy Code, which takes effect Jan. 1, 2023, has a new requirement for renewable energy systems for multi-family and non-residential projects. The calculation is based on conditioned floor area, building use, climate zone and other factors. Although the requirement is prescriptive, almost all projects will need to include PVs and batteries in order to meet the thresholds for reducing carbon emissions.

Here’s a 6-minute video where we walk through the Prescriptive method for sizing a standard baseline PV system, the results of which can be used to inform the design team of PV parameters and constraints early in the design process. 

For your specific project be sure to review the code language as to allowable exceptions, especially if it appears your project may not receive much sunlight, or may have a small solar accessible roof area.

More questions? Reach out: andy@inbalancegreen.com

A Peak into Green Building Classes - For High Schools!

We know that the future of energy efficiency and sustainable building depends on new people entering this field, whether transitioning from adjacent careers or brand new to the work force. The Tri-County Regional Energy Network (3C-REN) has scores of course offerings for designers, builders and other industry professionals, but has just added a new program to the mix: Green Building for high school students. At In Balance Green Consulting, we’ve had the pleasure of providing these introductory 1-hour classes, which not only supports new career paths for these youth, but also wowed our team with the hands-on learning these young people are offered.

Career Technical Education has seen a resurgence of investment, and it’s been exciting to see the ‘classrooms’ for many of these programs. With indoor shop space and support yards, students ages 14 – 18 are frequently building parts, or all, of a tiny home, including pouring concrete, framing walls and roofs, wiring lights, installing plumbing and HVAC, hanging drywall, installing siding, and even finishes in some cases.  Other courses cover drafting, design and engineering, alongside related fields like machining and wood shop.

In our “Introduction to Green Building” class, we review the energy and resources that go into a building, discuss the potential negative impacts of construction and suggest ways to mitigate those impacts. We talk about design, highlighting traditional building methods and contemporary climate-responsive projects, then talk about products that are low-emitting or use recycled content, for example. We pass around product samples, such as wool carpet, recycled glass counter tops, rigid insulation, and bamboo panels.

There are some very impressive programs throughout the central coast! To highlight a couple of rockstar programs (in their own words):

ACE Charter High: Architecture Construction and Engineering (ACE) Charter High School in Camarillo provides a scientific, technical, analytical, and liberal arts based high school experience through progressive and collaborative teaching practices. Through career pathways, ACE students explore a rigorous, contextual, project-based curriculum that prepares students for lifelong learning as well as direct-entry into college, professional apprenticeship programs, or a technical career.

Santa Maria CTE: The Santa Maria High School District has a Career Technical Education Center that just opened in 2021. The facilities are state-of-the-art, bringing together students from three different high schools throughout the district. The career focus is to ready students for apprenticeship programs or to community colleges for ongoing education and certifications.

Thousand Oaks High School: TOHS has a Residential and Commercial Construction pathway. Students learn the basics in 15 different trades, which will increase their opportunities for hiring in the future, and are introduced to industry standard techniques to be competitive in future job interviews. They compete in building competitions to demonstrate construction skills, develop student leadership and teamwork. Each unit of study provides students a hands-on learning experience to reinforce the concepts in order to further the learning and skill development. 

Do you know a high school program that would be interested in a guest speaker on green building? Reach out and let us know!