Net energy metering (NEM) 3.0 took effect in California on April 15, 2023. The new law brings changes to net energy metering, which has been the best solar incentive in California for years. While there has been some concern about net metering 3.0 in California, the benefits of solar are not going away.
Today, we’re going to explain why home solar is still worth it with NEM 3.0 and how California solar battery storage can help you get the most out of your investment in solar panels under the new law.
Net Metering Is Not Going Away Completely
There are a lot of misconceptions floating around about California’s solar NEM 3.0, including that net metering is being completely eliminated in the state. This is not true—net metering is not going away, but rather shifting to a structure called net billing.
Under net billing, solar customers receive different rates than the full retail rate for the electricity they send to the grid (unlike with net metering). Net billing rates are calculated separately and vary depending on the time of day, time of week, and time of year. With net billing, export rates in California are lower than they used to be, but are not eliminated entirely.
Solar Panels Save Money With or Without Net Metering
Solar panels save you money by allowing you to produce your own electricity instead of buying it from the grid. They will save you money on your electric bills regardless of California’s net metering laws. Many states do not offer net metering at all, yet homeowners still save money with solar.
The biggest change with NEM 3.0 is that export rates (what your utility pays you for your excess solar power) are being reduced. To make solar worth it with NEM 3, it will be best to use all the power you produce yourself instead of sending it to the grid. You can do this in two ways:
- Install a smaller system that covers your needs without producing too much excess power.
- Install a solar battery system to store your excess electricity onsite.
Solar Batteries Help You Save More with NEM 3.0
Under NEM 3.0, solar battery installation is more important than ever. When you install solar battery storage, you can use your excess solar power to charge your battery instead of sending it to the grid. Then, when your solar panels are not producing enough electricity, you can use your own stored solar power instead of buying electricity from the grid. Solar battery storage allows you to use more of the power you produce and minimizes what you send to the grid.
Stored solar energy will also be worth more in net metering credit under NEM 3.0. California utilities are willing to pay more for solar electricity during peak demand periods when the grid is under strain. With a battery, you can hold off on sending your excess power to the grid until export rates are at their highest point for the day.
Maximize Your Solar Savings Under NEM 3.0 with Premo Solar
Solar is worth it with NEM 3.0 and Premo Solar can help you maximize your savings! We will design a solar plus battery system that allows you to use more of your own power while minimizing what you send to the grid. We install the best and most powerful solar products on the market and will make the transition to solar as seamless as possible for you and your family.
