Net Energy Metering (NEM) is a program in California that allows homeowners who generate their own electricity with solar to be credited for any excess energy they produce and send back to the grid. NEM also helps to promote the growth of the solar industry in California. As the amount of solar power being produced increases, the state is able to reduce its reliance on fossil fuels and meet its renewable energy goals by allowing residents to generate their own electricity.
NEM 2.0 is the current version of this program, and NEM 3.0 will be replacing it on April 13, 2023. The California Public Utilities Commission (CPUC) has voted to pass NEM 3.0, which replaces the previous version, NEM 2.0. One of the key changes in NEM 3.0 is that it severely reduces the credits that solar customers receive for the excess power they generate and send back to the grid, instead passing the savings onto utility companies, including PG&E, SDG&E, and SCE.
NEM 3.0 drastically hurts new solar customers financially. Under NEM 3.0, homeowners will receive credits for excess energy sent back to the grid at what is called the avoided cost rate. Meaning homeowners will receive about 75% less for their excess energy under NEM 3.0 than under NEM 2.0. Additionally, NEM 3.0 will have a cap on the size of the system, limiting the number of solar panels that homeowners can install.
DC Makes It Easy – Talk to the Team Today!
DC Solar Electric makes the process easy by offering quotes and financing options and can help you navigate the process of getting grandfathered into NEM 2.0. Contact us today to take advantage of this opportunity.
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