
Good move. Right now the cap is that 2.5 % of their power must come from net metering customers (i.e. homes with solar on their roofs). They have agreed to take that to 3.5% since they expected to meet the original goal in 2011. One of the reasons it's attractive to install solar is because this program makes it more cost effective. The California legislature has been trying to make that cap 5% but failed to reach an agreement..guess they'll keep working on that.
A home owner can create excess power (net) during the day then use utility power at night when the panels are not producing. In effect you are using the utility as a giant battery. If the utilities stop allowing net metering then a home owner might create excess energy during the day from their panels that is just going to waste (or being used free by the utilities).
Our governor has stated that he wants to introduce legislation to eliminate the caps altogether so there is no limit to the amount of solar that can be installed..wait, back up the truck...beep, beep, beep! The cap is not a limit on how much power the companies can buy. It's forcing the utilities to buy net metering power up to the cap. They probably wouldn't buy any if they weren't mandated too.
I only hope the governator is talking about a deal where the utilities will want to buy all the net metering power they can get their hands on. That would be a win-win.

