Solar-Friendly Rate for Commercial Customers Adopted in California

December 19, 2014 By Linda Hardesty

Walmart-300x197The California Public Utilities Commission approved Thursday a solar-friendly rate for medium and large commercial and industrial customers in the Pacific Gas and Electric Company and Southern California Edison’s service territories.

As part of the decision, the CPUC approved the Option R rate, which was proposed and supported by the Solar Energy Industries Association (SEIA) lobby group. The Option R rate would lower demand charges in exchange for higher energy rates, particularly during peak and part-peak hours.

CPUC also approved a settlement agreement between SEIA, SCE and the commission’s Office of Ratepayer Advocates. Under the settlement, SCE agreed to increase the cap on its Option R rate from 150 megawatts to 400 MW, a move that benefits commercial and industrial customers in California with on-site renewable energy generation systems.

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