Record Electric Rates in the OC and Changes to VNEM hurt local businesses

In Orange County, small and medium-sized enterprises (SMEs) face daunting energy cost increases. With major utilities like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric poised to raise rates significantly, the pressure is mounting. 

SCE's impending 9% hike in 2024 is the continuation of increases that have added 39% since 2020 to Orange County business bills, and are scheduled to soar a further 45% by 2027. 

Commercial solar provides a hedge against these escalating costs. Switching to solar allows businesses to benefit from consistent energy expenses, crucial for reliable financial planning and stability.

Navigating the VNEM Change

Orange County's businesses also need to gear up for imminent changes in Virtual Net Energy Metering (VNEM), starting February 2024. The overhaul will change how energy is measured for enterprises owning enterprises with multiple electric meters. The upcoming rules limit solar systems to one meter per setup, potentially diminishing solar's financial benefits unless acted upon quickly. 

In times of economic flux and surging energy prices, the investment in solar, with a two-year payback period, has never looked more appetizing. 

For more information on the changes to Virtual Net Energy Metering changes, visit https://calmatters.org/environment/2023/11/california-solar-payment/

If you would like to speak to a Sunistics consultant about your options, please contact us on customer@sunisticsgroup.com or make an appointment here.