The introduction of NBT has been controversial because NEM2 – the preceding tariff – was so beneficial to individual homeowners and the solar installation industry. 

What was not made apparent during that controversy is that NEM2 was funded by an ever-increasing subsidy from the generally poorer people without solar to the generally richer people with solar.  Since the original legislation in 1995, the California legislature recognized the existence of this subsidy and required that it be terminated after the solar goals had been met. 

This page attempts to document the legislative history and subsidy, and explain the reasoning behind the CPUC's NBT decision. 

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