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Go Solar Before NEM 3.0 Hits

Start the solar application process to lock in your benefits under the current policy.

Industry Update

The California Public Utilities Commission (CPUC) released a decision to cut the savings from a new solar system by 75%—called NEM 3.0.

The vote for NEM 3.0 was on December 15, 2022. Utility customers of PG&E, SCE, and SDG&E have until April 13, 2023, at the earliest to submit interconnection paperwork and be grandfathered into NEM 2.0.

Luckily, anyone with solar under NEM 1.0 and 2.0 will be locked in under the current benefits.

But anyone who goes solar after April will do so under the new program—which means increased payback timelines and reduced solar credits earned. 

What Can I Do?

Good news is there’s still time to lock in your savings under the current policy. Have Solar Negotiators submit a complete interconnection application for you before NEM 3.0 goes into effect (April 13, 2023) and remain under the much more favorable NEM 2.0.

According to CALSSA, a complete interconnection application includes a:

  • Signed contract
  • Single Line Diagram (SLD)
  • Contractors State License Board disclosure (CSLB)
  • Consumer protection guide
  • Oversizing attestation (if applicable)
 

NEM 3.0 FAQs

No, this change only takes effect in California and only the PG&E, SCE, and SDG&E service areas will be impacted by these proposed changes.

NEM 3.0 would reduce the export rate for electricity generated by household solar panels by around 75%, from an average of 30 cents per kWh to 8 cents per kWh. The lower solar export prices under NEM 3.0 would lengthen the payback period for solar owners and reduce overall savings.

This significantly raises the value of combining solar power and battery storage. The return on investment for solar and battery under the proposed pricing structure is comparable to that for solar alone, but with the advantages and independence of having a backup power source.

  • The rate at which solar owners would be reimbursed for the excess electricity they supplied to the grid is the significant change between NEM 2.0 and NEM 3.0.
    • Solar owners receive credit for the total retail value of each kWh of electricity they export to the grid under the majority of net metering regimes, including NEM 2.0. In this one-to-one trade, each kWh you export (push onto the grid) counterbalances a kWh you import.
    • The value of solar exports would no longer be determined by retail prices under NEM 3.0. The “Avoided Cost Calculator” would be the basis for export prices, which would change hourly depending on Time of Use rates.
  • It significantly decreases the value of solar electricity’s net metering. Roughly an 80% decrease in credit value, from today’s ~24 cents/kWh to ~5 cents/kWh.
  • The payback period for solar is estimated to double the current payback period residential customers have.
  • NEM 3.0 makes the coupling of solar and battery storage a priority. This is due to the fact that peak solar production in California doesn’t coincide with peak energy consumption; rather, the problem is with storing and using it.
  • One new positive change to this revised NEM 3.0 proposal is that there will be no new solar taxes. Previously, it was anticipated that these taxes would raise solar owners’ utility rates by about $60 per month. They appear to be off the table, at least for the time being.

Good news is there’s still time to lock in your savings under the current policy. Have Solar Negotiators submit a complete interconnection application for you before NEM 3.0 goes into effect (April 13, 2023) and remain under the much more favorable NEM 2.0. 

According to CALSSA, a complete interconnection application includes a:

  • Signed contract
  • Single Line Diagram (SLD)
  • Contractors State License Board disclosure (CSLB)
  • Consumer protection guide
  • Oversizing attestation (if applicable)

Click here to start the reservation process.

Anyone who waits to move forward with a solar contract after April 13th, 2023 they will be impacted by the changes under the NEM 3.0 policy, such as:

  • Reduced solar credits
  • Increased utility rates
  • Longer payback periods
  • Needing battery backup to offset costs

**Please read carefully to find out if any of the following apply to you**:

  • You’re Interested in Adding Panels:
  • You’d Like Solar Installed on a Second Home:
  • You’d Like to Refer Someone:

If any of the above apply to you, we urge you to please click here to reserve your spot for a NEM 2.0 policy interconnection. This is good for up to 20 years, with no deadline for construction of the system. Reserving your spot will keep you protected and ensure you can remain under the current solar policy benefits. 

Differences between
NEM 2.0 and NEM 3.0

Best Solar Companies for Solar Installation and Solar Maintenance and Panel Cleaning. Solar Negotiator Fresno and Bakersfield.

Reserve your solar application before you lose your  NEM 2.0  benefits.

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