On April 15, 2023, California’s Net Energy Metering (NEM) policy, now known as The Solar Billing Plan or The Net Billing Tariff went into effect. Solar customers are credited for the excess energy they generate and send back to the grid. As California transitions to “The Net Billing Tariff” (NBT), there will be questions about how it affects the process of getting solar, people’s energy bills, and the benefits for current and prospective solar system owners.
To answer those questions, your friendly solar experts at A.M. Sun Solar created a breakdown of getting solar and how solar reduces energy bills.
How Does The Net Billing Tariff Work?
NEM, The Net Billing Tariff, is a billing arrangement that credits solar customers for the excess energy they generate and send back to the grid.
Under The Net Billing Tariff (Formerly NEM 3.0), solar customers will receive credits for excess energy. Instead of receiving retail-rate credits, solar customers will receive a credit of less than retail established by their utility company.
So, what does this mean for solar customers in California? It means that solar is a great way to save money on energy bills.
How Will The Net Billing Tariff, (Formerly NEM 3.0) Impact Current Solar System Owners?
Existing solar systems that are already enrolled in NEM 1.0 or NEM 2.0 are typically grandfathered into the new program, meaning that they can continue to receive credits for excess electricity generated by their solar system based on the terms and conditions of their existing program.
What are my options for adding solar?
Solar will offset a significant portion of your energy costs under “The Net Billing Tariff”. Solar system owners can expect to see reduced energy bills as they continue to generate their own electricity from solar panels and offset their consumption from the grid with credits earned from excess generation.
- Solar Only: This option offsets power usage during the day and feeds extra to the grid for credit.
- Solar with Battery without Backup: A great way to maximize your solar savings is to add battery storage to your solar panel system. With a battery, you can store excess energy generated during the day and use it during peak demand periods when TOU rates are highest. This can help you avoid purchasing electricity from the grid during these expensive periods and maximize your savings.
- Solar with Battery with Back up: This the best way to maximize your solar savings but this may require a bit more electrical work. In some instances more battery storage may be necessary to help power larger appliances. This solution is most popular because it gives you control since you have power when the utility grid in a blackout.
Do you have multiple meters on your property? Good news! Regulations have not changed for you yet. Read more about meter aggregation here.
In summary, with solar, you can generate your own electricity, reduce your reliance on the grid, and lock in your energy costs for years to come. If you’re considering going solar, now is a great time to do it! Reach out to our team of friendly solar experts waiting to help you get started today!
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