Customers Moving to a PURPA-Compliant Tariff
Why this may happen
In some cases, customers with solar, battery or other self-generating systems may be moved to a different billing structure if a contractor working on their installation is found in violation of California’s prevailing wage requirements.
Under California rules, contractors must meet specific prevailing wage standards when installing solar or battery systems. If a violation is confirmed by the California Department of Industrial Relations (DIR), the customer’s account must be moved from their current solar billing structure (Net Energy Metering or Solar Billing Plan) to a PURPA-compliant tariff.
What is PURPA?
PURPA, or the Public Utility Regulatory Policies Act of 1978, is a federal law that establishes how utilities compensate certain types of energy generation, including solar.
Under PURPA, exported energy is valued using a regulated pricing formula. In this situation, PURPA serves as a compliance-based tariff that applies when prevailing wage requirements are not met.
What happens if a violation occurs
If your account is moved to a PURPA-compliant tariff, your billing will change. Your account will no longer be billed under your current solar billing structure, and the energy your system sends to the grid will be compensated using a different pricing method. Instead of your prior solar export pricing, credits on a PURPA-compliant tariff will be calculated using a monthly, regulated formula.
If your contractor later resolves the prevailing wage violation and all requirements are met, your account may be eligible to return to your original solar billing.
If you are a Community Choice Aggregation (CCA) customer, your CCA determines your generation export credits under the PURPA-compliant tariff.
Contact your CCA for more information about your generation credits.
Frequently Asked Questions (FAQs)
A contractor who worked on your system was found to be non-compliant with California prevailing wage requirements. State rules require your account to be moved to a PURPA- compliant tariff in this situation.
Credits are based on the energy your system exports and a regulatory pricing formula that is calculated monthly. Learn more about the calculation in the billing section of the PURPA- compliant tariff.
If you’re a Community Choice Aggregation (CCA) customer, contact your CCA for more information about your generation credits.
It depends on when and how much energy your system exports and the PURPA pricing formula. Because PURPA uses a different pricing method, your bill may change compared to your previous billing structure.
Yes. You will receive an email notification before your account is transitioned from your existing solar billing to the PURPA-compliant tariff.
Any benefiting accounts associated with your Virtual or Aggregation solar arrangement will be removed from their prior solar billing. Going forward, only the generating account will receive PURPA Generation Credits. Benefiting accounts will not be eligible for credits.
If your contractor resolves the prevailing wage violation and meets all requirements, your account may be eligible to return to its prior solar billing structure. Virtual or Aggregation solar arrangements will be restored to their prior setup.
If you were a Net Energy Metering (NEM) or Solar Billing Plan (SBP) customer, your legacy period will continue while your account is on a PURPA-compliant tariff. It is not paused. If time still remains in your legacy period when PURPA service ends, you'll return to your original NEM or SBP billing. If your legacy period expires while on PURPA, you'll be moved to the applicable successor tariff once PURPA service ends.
The California Department of Industrial Relations (DIR) determines whether a contractor has violated prevailing wage requirements.
If your account has been moved to a PURPA-compliant tariff, we recommend contacting your contractor for additional information and assistance.