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Featured image
by Gabe Thrasher May 3, 2021 Uncategorized 0 comments

What Is NEM 3.0?

In the early days of Net Energy Metering, homeowners with solar who produced more energy than they used would get a check from the utility provider. Years later, so much solar energy was being produced and sold back to the grid, the utility providers had to change the rules regarding crediting that energy back to the homeowner. That was the beginning of Net Energy Metering 2.0, and NEM 3.0 is right around the corner, which is proposed to be more restrictive for homeowners with solar.

All three California utilities have proposed changes to “modernize” the state’s net metering policies. The proposal claims that it will ensure “equity” for Californians who do not go solar. But it has not sat well with the solar industry. The proposal would add monthly customer service and maintenance costs to California’s current net metering system for new solar installations. If enacted, the change would apply to new solar customers from November 2021. NEM 3.0 would also revise compensation for excess energy, meaning customers will have their accounts balanced each month.

For homeowners who will go solar after these changes are enacted in the state, it will reduce the value of installing solar around 50-75% from what it is today. That’s a massive bummer for residents who enjoy so much sunshine every year. California enjoys the title of the state with the greatest installed solar energy capacity. Our lead is so significant that we have six times more solar installed than the runner-up, our neighbor, Arizona. The abundant sunshine that both states enjoy makes going solar a smart choice for homeowners who want to lower their electric bills by generating their energy.  

Here, the silver lining is that the California Public Utilities Commission will grandfather in older systems and continue to uphold the original agreements. Installing solar now is the best option as it’s likely that customers on NEM 2.0 will not see any changes with the new program. All this means that going solar now would most likely allow you to lock in NEM 2.0 benefits for the next two decades.   

And suppose you live in an area that qualifies you for the SGIP. In that case, adding a backup battery system gives you a significant advantage over your utility’s ToU rates. If you have been thinking about going solar, now really is the time to text or call us and schedule an appointment with our Energy Experts. 951-678-7733

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