As a residential solar consultant, I believe it’s important for homeowners to stay informed about changes in net energy metering policies, like NEM 3.0. With the new policy offering a significantly lower credit for excess energy delivered to the grid, it’s important for both existing and future solar customers to consider their options carefully. Existing customers may want to stay on NEM-1 or NEM 2.0 for the remainder of their 20-year period, while future customers may need to consider battery storage solutions to maximize their savings. As a consultant, I can help homeowners navigate these changes and find the best solar solution for their needs. Here are 5 Quick Facts about California NAM 3.0
Quick Facts about NEM 3.0
What is NEM 3.0?
The method utilities use to calculate the excess solar power their customers deliver to the electric grid during the day is called “net energy metering” (NEM) or simply, “net metering.” The rules that determine how solar customers are compensated are approved by each state’s Public Utilities Commission (PUC). In late 2022, the California PUC voted to adopt the state’s third NEM policy (after NEM-1 and NEM 2.0) which we call NEM 3.0.
How is NEM 3.0 different?
Compared to NEM-1 and NEM 2.0, which both provided solar customers a 1:1 credit for the excess power they delivered to the electric grid during the day, NEM 3.0 will offer a significantly lower credit. Under NEM-3.0, customers will receive 75% to 80% less from the utility for the energy they send to the grid during the day. instead of getting compensated for the full retail value of electricity delivered to the electric grid, solar users will only receive a fraction of the retail value of electricity that they share with the grid.
When does NEM 3.0 go into effect?
The new net metering rules go into effect on April 15th, 2023 which means the last day to qualify for NEM 2.0 by submitting a complete interconnection application is April 14th, 2023.
What does NEM 3.0 mean for existing solar customers?
Homeowners who already have solar in California, or who qualify for NEM 2.0 before the new rules take effect on April 15th, 2023, are locked into NEM-1 or NEM 2.0 for 20 years from the date their solar system is turned on. Customers who are nearing the end of the 20-year period will be switched to NEM 3.0.
What does NEM 3.0 Mean for future solar customers?
The new net metering rules under NEM 3.0 will have a significant impact on the financial savings that homeowners enjoy from going solar, and in order to see the full benefits of going solar, future customers will most likely require battery storage solutions.
How do I go solar before NEM 3.0 goes into effect?
If you’re considering going solar before the NEM 3.0 policy takes effect on April 15th, 2023, it’s important to speak to an Independent Energy Consultant like me. Once you’ve signed a contract with me, I’ll work quickly to complete your site survey, finalize the design of your solar system, and submit a complete interconnection application to your utility company by April 14th, 2023.
Completing your interconnection application may take a few weeks, so to ensure you qualify for NEM 2.0, I recommend completing your signed contract by March 31st, 2023. While I cannot guarantee that you will qualify for NEM 3.0, I will work as fast as possible to get your interconnection application submitted by April 14th once your contract is complete.