Simplifying the Road to Beat Solar Prevailing Rate Regulation AB 2143
WHO
All California commercial businesses
WHAT
Newly updated solar regulation allowing the submittal of a NEM application to avoid increased labor costs for future projects (See below for more detail)
WHEN
Prior to January 1, 2024
HOW
Solar Energy Builders can quickly and cost effectively get your foot in the door with the following simple steps
- Provide us with your business information and location
- We will design your system and conduct a site survey
- If the system design is agreeable, we will draw necessary plans and submit the NEM application prior to January 1, 2024
- You lock in your placeholder to avoid prevailing rates for your future solar project and put off the costs associated with permitting and construction until you decide next year*
DON’T WAIT, ACT TODAY TO AVOID INCREASED LABOR COSTS ON YOUR SOLAR INSTALLATION
Earlier this year, California approved Assembly Bill No. 2143 (see https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2143) which in short required that the “construction” of any solar project after December 31, 2023 that applied for and received energy credits from utilities would be subject to a prevailing rate requirement. This requirement dictates that the solar contractor on the project must pay all construction workers involved in the construction of the solar system the general prevailing rate. This requirement will potentially double the labor costs on many solar projects and therefore cut into the value and savings that new solar systems will create beyond 2023.
Originally, the consensus was that to avoid the prevailing rate requirement, a new solar system would need to begin construction prior to January 1, 2024. The road to beginning construction can vary greatly depending on the jurisdiction of a project and can often take several weeks to months, meaning any project not started prior to the fourth quarter of 2023 was very unlikely to avoid the requirements of AB 2143.
HOWEVER, as of November 16, 2023, an advantageous update to the regulation has been confirmed. Currently, the only item required to avoid paying prevailing rate costs on projects in 2024 is the submittal of a Net Energy Metering (NEM) application with your utility provider prior to January 1, 2024. Once submitted, a business will have its foot in the door to complete future solar projects without having to suffer the increased costs associated with prevailing rates.
The NEM application only requires the system design and plans for the solar project without any time-consuming and costly permit applications or construction activities. Solar Energy Builders specializes in turn-key designs with quick turn-around times and is geared up and ready to help your business complete the low-cost application process prior to the new year.
Solar Energy Builders is ready and willing to design your system and complete the NEM application process so that you have the power to move forward with your future project while avoiding unnecessary cost increases. If you have any future plans for solar at your business, DO NOT WAIT! Reserve lower costs on your solar project by acting now and locking in your future solar savings this year!
*Any costs paid to Solar Energy Builders in the filing of the NEM application will be applied to the total future project cost
Our Motto: We put it where the sun shines
What some of our past clients have to say about us
“Bottom line – Solar Energy Builders does what they say they will do. We highly recommend their services to anyone interested in investing in a quality solar power system.”
“The optimization and inverter technology they employed is now allowing our system to perform better than predicted by the California solar calculator. The Solar PV system has greatly exceeded our expectations.”
“Each of the three systems you designed are now producing all of the energy that we need to operate our facility. We appreciate that Solar Energy Builders invested the time to properly size our installation.”
“Solar Energy Builders made sure our project had full time supervision, and continued to repair portions of our structure even after the city inspectors had approved the roof for re-roofing. They did not have to do that.”
“We just found out from SCE our little solar farm produced more than we used! you coached us into a very intelligent business decision by going solar on our roof.”
“[Your system] helped us to receive the maximum city cash incentives while also offsetting more of our power use from the local utility.”
“Solar Energy Builders took the time to make sure things were done right. We are very pleased with our investment.”