Less than three weeks since California ended net metering in favor of a controversial net-billing policy that significantly reduced the value of surplus solar power exported to the grid, SunPower executives say they're "cautiously optimistic" about a surge in co-located battery interest from customers.
During a call reporting first-quarter earnings to investors, SunPower CEO Peter Faricy said the company saw battery attachment rates of 26%, 32%, and 47% in the first three weeks since California's net-billing policy took effect on April 15. SunPower believed, and hoped, battery attachment rates would exceed 20% under the new framework, commonly referred to as NEM 3.0.
"We're really beginning to see an acceleration in this channel," Faricy said. "I think it's way too early to make a conclusion on this yet, the numbers are small so I want to give the appropriate caveats, but we're really seeing some real momentum on the battery side. For customers in California, I think (batteries) will be a standard part of the package now."
Faricy said SunPower saw larger solar system sizes in California since Q4 2022 along with the spike in battery attachment rates.
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Last December, the California Public Utilities Commission approved changes to the state’s net energy metering tariff in a bid to improve price signals by better aligning them with the electric grid’s conditions, both day and night.
The tariff’s updated billing structure is designed to optimize grid use by the tariff’s customers and incentivize the adoption of combined solar and storage systems. CPUC staff said changes would help meet California’s climate goals and increase reliability, while promoting affordability across all income levels.
In the ruling, the CPUC said that since implementing net energy metering over 20 years ago, California has witnessed the evolution of the customer-sited rooftop solar industry, resulting in the installation of more than 12 GW of clean distributed energy resources.
Residential solar providers in California are shifting to a model that lowers barriers for customers to pair batteries with rooftop solar.
Days before NEM 3.0 took effect, Sunrun launched a subscription service that it said will help customers adapt to the policy change by incorporating co-located battery storage systems.
Sunrun's "Shift" offering is intended to help customers increase self-consumption during peak hours when rates are highest and reduce low-value exports to the grid by using battery storage, the company said in a press release.
The program does not provide backup power capabilities and, as a result, is expected to limit labor hours, equipment costs, and potential panel upgrades often required for conventional home backup systems.
A month earlier, Sunnova launched a program to offer new customers a free battery to counter NEM 3.0.
Sunnova's offer targets customers who sign up for a residential lease of both solar and storage services. The "free" battery, valued at $8,000, does not include the cost of installation, the solar system, or Sunnova's 25-year warranty.
