If you’ve already installed a solar system but find that it isn’t fully covering your energy usage, it might be time to consider expanding it. For San Luis Obispo County residents, there are important factors to consider, especially with the current Net Energy Metering (NEM) policies in place here in California.
NEM 2.0 vs. NEM 3.0: Key Differences When Expanding Your Solar System
California has two primary NEM policies that SLO County homeowners need to be aware of: NEM 2.0 and NEM 3.0
*Note: Most systems installed in 2023 or prior are NEM 2.0 systems. Systems installed in 2024 or beyond will be NEM 3.0 systems.
- NEM 3.0 Systems: If your solar system falls under the NEM 3.0 policy, you can add to your system without any restrictions. This means you can expand your solar production without worrying about it affecting your existing metering setup.
- NEM 2.0 Systems: For homeowners under NEM 2.0, you can add more solar, but there’s a catch. You can increase your system’s capacity by 1 kW or 10%, whichever is greater, without affecting your current metering agreement.
- For context, 1 kW can add around $500 in savings per year. You can also add a battery to your NEM 2.0 system without altering your metering. For NEM 2.0 solar owners whose bill exceeds $500/year, this may be an option to consider.
Considerations for a Non-Exporting System for Additional Solar
If your current NEM 2.0 solar system isn’t offsetting your entire electricity bill, but you don’t want to switch to NEM 3.0, adding a non-exporting system may be an option for you to explore. This type of system does not send excess electricity back to the grid. Instead this system focuses on storing extra energy in a battery for use at night or during peak hours.
Non-exporting systems help you avoid the lower export compensation rates under NEM 3.0 and maintain more control over how and when you use your solar energy.
Exporting Solar Systems: Understanding the Decreasing Benefits
For those with exporting systems, it is still possible to send excess energy back to the grid; however the financial benefits of doing so have decreased under NEM 3.0. Exporting energy is less beneficial than in the past because you receive lower compensation than in the past. That’s why many Central Coast homeowners are choosing to focus on non-exporting battery systems to make the most of their solar energy.
Need Help Expanding Your Solar System?
If you’re ready to add to your existing solar setup or want to learn more about your options, A.M. Sun Solar + Roofing is here to help. Contact us today for a free consultation and discover how you can maximize your energy savings!
Contact us today to add to your solar system!