March 2021 – Changes are on the way for Net Energy Metering (NEM), which will have a huge impact on the solar industry in California and anyone who wants to install solar panels on their home. Anyone considering installing solar on their home should act quickly and install before November 2021; otherwise, new solar owners could see the adverse impact of what NEM 3.0 has on the horizon.
As the Central Coast’s local solar experts, we have made a bold commitment to provide clean energy, and help local families invest in solar while reducing their monthly electric bills. The new bill being presented by the California Public Utilities Commission (CPUC) could affect the viability of the solar industry, resulting in adverse effects on the way solar owners can save money on their electric bills.
If you’d like to join us in getting involved and advocating for smarter solar policy in California, please sign this petition addressing Gov. Newsom today:
What is Net Energy Metering (NEM) ?
When your solar energy system produces excess energy, it is then sent back to PG&E to buy back the energy from you. Customers use that extra energy to offset their total electric bill; this is where saving money with solar comes from. This excess energy is also used during heavy overcast days, or during the night, when electricity usage is greater than its production.
Key Takeaways:
NEM 2.0 isn’t perfect, but it’s better than NEM 3.0.
The current program, NEM 2.0, allows Central Coast solar owners to sell excess energy back to PG&E. That excess amount is then offset against their electric bills, typically resulting in money saved on their monthly power bills. NEM 2.0 requires solar customers to be on a time-of-use (TOU) billing rate program, which means electricity rates vary based on the time of day. Although the TOU rate has resulted in implications on net metering, A.M. Sun Solar’s system designs have adapted to take TOU into account.
Switching to NEM 3.0 would be detrimental to the solar industry and its customers.
NEM 3.0, the proposed program, would decrease the credit paid to solar owners and include additional monthly fees on solar owners’ electric bills. It even has the potential to require new solar owners to pay a fixed sub-retail price for their solar energy without the ability to use any of it themselves.
Current solar owners are grandfathered into the NEM program they currently have.
Any new solar customers that purchase solar after November 2021 will be signing onto NEM 3.0. However, if you install solar prior to November 2021, you will sign an agreement for NEM 2.0. If you currently have NEM 1.0 or NEM 2.0, your agreement will be honored by the CPUC.
If you don’t own a solar energy system yet, it must be purchased before November 2021 to avoid NEM 3.0.
If you’ve been considering installing a solar energy system, there’s never been a better time than now! Signing up before November 2021 will allow you to sign onto the NEM 2.0 agreement and avoid the new NEM 3.0 proposal.
It’s not too late to get involved.
Let’s work together in advocating for clean energy, while discouraging the lobbying occurring intended to attack net energy metering. Sign the petition addressing Gov. Newsom today to help us stand up to utility companies.
If you have questions about solar, we’ve got you covered. Connect with the local solar experts at A.M. Sun Solar today to receive a free solar quote for your home or business. Connect with us at hello@amsunsolar.com or give us a call at 805-600-5801.
Questions? Contact us today!