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Learn everything you need to know about how NEM 3.0 will affect your Solar options
What is NEM 3.0?
NEM 3.0 is the third version of California’s rooftop solar rules, also known as “Net Energy Metering.” It was adopted by the California Public Utilities Commission (CPUC) and took effect on April 15, 2023. Moving forward, it is now called the Solar Billing Plan.
How does NEM 3.0 affect my energy bill?
Under NEM 3.0, solar users will receive credit rates from utility companies for the extra energy they share with the grid. The compensation for that extra energy will be about $0.05/kWh. Additionally, NEM 3.0 solar users will be placed on a rate plan with higher evening electricity rates, which will make the payback period for a solar investment about 10 years.
How can I make my payback period less?
Adding a battery to new and existing systems will benefit you and make your payback period less. In an attempt to reduce demand on the grid during peak hours, NEM 3.0 strongly incentivizes adding battery storage to new and existing systems. Under NEM 3.0, homeowners should store power generated during the day and draw on it in the evening instead of the grid..
If I already have solar (NEM 1.0 or NEM 2.0), will the new regulations (NEM 3.0) affect me?
The new rules will not affect NEM 1.0 and NEM 2.0 solar users until their lock-in period expires, unless they add more panels. The lock-in period, also known as grandfathering, is 20 years after the utility turned on their solar system.
Is there anyone who can still get NEM 2.0?
Yes, If you have multiple meters on your property, you can qualify for N.E.M A which grandfathers you in at a higher rate of compensation for the extra energy that is shared with the grid.
What happens if I already have solar and want to add more panels?
Existing solar users who want to increase their system can size up to 10% or 1kW.
Yes, existing solar users can add a battery at any time without affecting their lock-in status.
What happens if I have solar and sell my home?
If you are a NEM 1.0 or NEM 2.0 customer and you sell your home, the new owner will take over the remainder of your lock-in period.
What are the key components of the Solar Billing Plan?
Each month, billing will include: Charges for the energy used from the electric grid (when your solar isn’t generating as much as you are using, for example, at night) Bill credits for excess energy generated from your solar system and sent to the grid (when more solar energy is generated than needed during the day)*PGE
Will the CPUC’s decision affect community energy providers or municipal utilities?
The CPUC’s decision does affect community choice energy providers, but some may choose to give their customers a higher credit. The decision does not affect locally governed utilities.