January 6, 2023

How Will California’s Net Energy Metering Policy (NEM 3.0) Affect Home Solar Systems?

California’s Net Energy Metering (NEM) policy is designed to encourage the use of solar energy by crediting solar panel owners for the excess electricity their systems generate. The policy has undergone several updates over the years, with the latest version, NEM 3.0, which was recently passed.

So, how will NEM 3.0 affect home solar systems in California? Here are a few key changes to consider:

  • Reduced credits for excess solar energy: Under NEM 3.0, homeowners will receive reduced credits for the excess solar energy their systems generate. The credits will be based on the utilities’ avoided cost of generation, which is typically lower than the retail price of electricity. This means homeowners may not receive as much financial benefit from their excess solar energy as they did under previous versions of NEM.
  • Time-of-use (TOU) rates: NEM 3.0 will also introduce time-of-use (TOU) rates for solar panel owners. These rates will vary depending on the time of day and the season, with higher rates during peak demand periods and lower rates during off-peak periods. This means homeowners will need to be more strategic about when they use their solar energy in order to maximize their savings.
  • Interconnection fees: NEM 3.0 will also require solar panel owners to pay interconnection fees when they connect their systems to the grid. These fees will vary depending on the size of the solar system and the utilities’ costs to interconnect it.

There’s still time! A completed Interconnection Application package will need to be submitted to your utility prior to 5pm PST April 13, 2023, in order to fall under NEM 2.0 rates and regulations. Keep in mind that it takes some time to prepare an application properly, so you will want to connect with your solar energy provider as early as possible before the deadline. Get your FREE quote to get started!

Overall, NEM 3.0 will bring some changes to the way solar panel owners are credited for their excess energy and how they are charged for electricity. It’s important for homeowners to understand these changes and how they may impact their solar energy systems.