In December of 2022, The California Public Utilities Commission (CPUC) passed Net Energy Metering (NEM) 3.0 after more than a year of deliberation and revision. NEM 3.0 is the latest iteration of California’s net metering policy. It brings some major changes to the long-standing solar incentive that has benefited solar owners in the state for years.
There’s been a lot of uproar around NEM 3.0 in the news and whether you already have residential solar panels or you’re thinking about installing them, you probably want to know how the new policy will affect you.
Export Rates are Lower Under NEM 3.0
The biggest change that’s coming with NEM 3.0 in California is the value of export rates.
Under a traditional net metering system, including NEM 2.0 (California’s current net metering policy), solar customers send their excess solar power to the grid and are credited at the full retail rate of electricity. NEM 3.0 will pay customers a significantly reduced rate for the electricity they export to the grid, and rates will vary by month and time of day.
According to a recent statement by The California Solar & Storage Association (CALSSA), NEM 3.0 would “cut the average export rate in California from $0.30 per kilowatt to $0.08 per kilowatt…resulting in a 75 percent reduction in value of exports.”
Although export rates are being reduced, it’s important to note that net metering isn’t going away in California. You’ll still be compensated for the excess solar energy you send to the grid, which will help speed up your solar payback period and increase your solar savings.
NEM 3.0 Rewards Solar Battery Storage
Solar panels generate the most electricity during the day, but the demand for electricity is highest in the evening. California needs a way to store more solar energy during the day so it can be used to meet peak demand in the evenings, and it’s turning to solar plus battery storage as a solution.
Under California net metering 3.0, export rates will be higher during peak electricity consumption times. Solar owners who install home backup batteries will be able to store excess solar energy in their batteries and export it to the grid at the optimal time. With solar battery backup, net metering is more advantageous. Plus, you’ll get the additional benefits of solar batteries, like backup power during a grid outage.
Current NEM 2.0 Participants are Grandfathered In
The biggest question among current net metering participants is whether the NEM 3.0 California update will affect them. The answer is no—if you are already participating in NEM 2.0, your plan will stay the same. NEM 2.0 customers can also add batteries for their solar panels without sacrificing their NEM 2.0 status.
It’s not too late to get grandfathered into NEM 2.0!
NEM 3.0 will take effect on April 13, 2023. Customers who sign a solar interconnection agreement before then will be grandfathered into NEM 2.0. Premo Solar is offering a NEM 2.0 guarantee until March 1, 2023. Don’t miss out—start your solar installation with Premo Solar today.
Premium Solar Panel & Battery Installation in Santa Cruz, Salinas & Monterey
Premo Solar can help you take advantage of California solar rebates and incentives like net energy metering. We install custom-designed solar energy systems that look beautiful and feature the highest-quality solar products available. Premo has been a trusted name in Monterey Bay for decades and you can count on us for an exceptional experience from beginning to end.
