Are you a customer of Central Coast Community Energy (3CE for short, and formerly Monterey Bay Community Power)? If so, you need to know about some changes to the company’s billing cycle and Net Energy Metering program. 3CE is a community choice utility that provides power in Monterey, San Benito, and Santa Cruz counties as well as parts of San Luis Obispo and Santa Barbara counties.
3CE recently announced that, from 2022 on, all customers receiving NEM service will be trued up in December of each year. End of year statements will be available in January of each year. At face value, this just sounds like a calendar shift. However, this change could have a significant impact on some solar users. In this article, we’ll answer important questions about what this means for you.
What is an annual true-up?
When you install solar panels, you get power in two ways: from your solar system and from the grid. During shorter days in the cloudier months, people are more likely to have a net monthly draw of electricity from the grid. During longer sunny months, people are more likely to send any electricity you don’t use back to the grid for a positive monthly net difference.
Then after a full cycle of the sun, a year, the account is reset and if your net was negative, you will have to pay. But if your account was net positive you receive wholesale credit for your energy. Ideally the net difference is very close to zero and that is how net metering systems have been designed around for the last 20 years.
How is 3CE changing its billing cycle?
All 3CE customers receiving NEM service are now trued up annually in December. Additionally, all newly enrolling customers may be trued up twice during their first year of service with 3CE.
According to 3CE’s website, “A synchronized annual true-up for all customers contributes to [3CE’s] ongoing efforts to provide rates and services that are fair and affordable for all customers.
“Calculating Net Surplus Compensation and issuing payments indefinitely throughout the year carries an administrative cost that ultimately impacts the cost to serve all [3CE] customers,” the website said.
What does this mean for 3CE customers?
While 3CE states that on average, NEM customers will continue to be better off with 3CE than PG&E, the new billing cycle could negatively impact some solar users.
Solar systems harness the sun’s energy and convert it into electricity. In California, your system is going to produce more energy during the summer months and less energy during the winter. Those long sunny days when you receive a credit for producing excess energy are meant to offset the shorter, cloudier winter days when you need to pull electricity from the grid (debits).
Under 3CE’s new billing cycle, customers will have to pay up front for the grid energy they use. They won’t be able to build up credits during the summer months to cover the decrease in energy production that occurs during the winter. Without these credits, most 3CE customers will see a significant increase in utility fees.
3CE is allowing customers, including those receiving NEM service, to opt out of its utility program, 60 days prior to enrollment or 60 days after enrollment. Outside of this grace period there will be a $5 fee for residential accounts and a $25 fee for commercial accounts to cover administrative costs.
What should I do about it?
If you’re worried about 3CE’s billing changes and what it means for you, contact the energy experts at A.M. Sun Solar. As your local solar company, we’re here to help you navigate the ebbs and flows of the “solar coaster” and find the best solar solution for your needs!
Our staff will take the time to understand your goals and answer questions. Give us a call at (805) 772-6786 or fill out the form below to get started. No pressure or obligation; that’s not our style. Just a friendly chat and all the time you need to get all of your questions answered.
Questions? Contact us today!
If you have questions about solar, we’ve got you covered. Connect with the local solar experts at A.M. Sun Solar today to receive a free solar quote for your home or business. Connect with us at hello@amsunsolar.com or give us a call at 805-600-5801.