Updated Dec. 16, 2022
California is changing solar policy! Sign up for solar before April 15th.
The California Public Utilities Commission (CPUC) voted 5-0 yesterday to approve Net Energy Metering (NEM) 3.0. The new, highly contentious regulations will cut the rates homeowners receive for excess solar energy production by a whopping 75%, severely reducing their monthly utility savings.
NEM 3.0 is slated to take effect on April 15, 2023 after a four-month grandfathering period.
To get grandfathered in with the current beneficial rate structure, customers must have their systems approved for grid interconnection by April 14, 2023.
Solar customers who installed their systems previously will continue to receive the same rates.
Here are the biggest changes made under NEM 3.0
- Reduced compensation rates. The average rate solar customers receive for exporting energy to the grid will go from $0.30 per kWh to $0.08 per kWh. Previously, solar owners were credited a one-to-one exchange for every kWh they send back to the grid.
- A push for battery storage. In an attempt to reduce demand on the grid during peak hours, NEM 3.0 strongly penalizes not 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.
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