Why to Get Solar Before California Regulations Change


The California Public Utilities Commission (CPUC) recently “reopened the record” on its Net Energy Metering (NEM 3.0) proceeding to gather more information about the proposal. This means the CPUC won’t make a decision about NEM 3.0 until July 2022 at the earliest

The initial proposal included a steep tax on rooftop solar and the gutting of solar credits for consumers, making solar unaffordable for most households. It received intense backlash from the public

Bernadette Del Chiaro, executive director of the California Solar & Storage Association issued the following statement on the CPUC’s actions:

“Our large and diverse coalition of solar supporters is glad the CPUC recognized just how far out of step the first proposed decision was with California’s clean energy goals and equity values,” Del Chiaro said. “Californians strongly support rooftop solar and will not accept a decision that taxes the sun or slows our state’s clean energy progress by making solar unaffordable.”  Read the full statement here.

Changes are on the way for Net Energy Metering (NEM)

The NEM changes that are coming 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 as soon as possible; 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. 

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.

However, if you install solar now you too can be grandfathered in to 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 as soon as possible 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 as soon as possible 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!