NEM 3.0, or the third iteration of the Net Energy Metering program in California, is set to roll out in 2023 and will have a significant impact on residents of the state who have installed solar panels on their homes. This new version of the program will change the way that solar energy is compensated for and will have both benefits and drawbacks for homeowners.
One of the most notable changes in NEM 3.0 is the shift from a “one-for-one” compensation system to a “time-of-use” system. Under the old system, homeowners were credited for every kilowatt-hour (kWh) of solar energy they produced at the same rate as they were charged for every kWh they consumed from the grid. Under the new system, homeowners will be credited for their solar energy at different rates depending on the time of day, with higher rates during peak hours and lower rates during non-peak hours.
This change is intended to better align solar energy production with periods of high demand, which will help to reduce strain on the grid and lower overall energy costs for all California residents. However, it also means that homeowners will need to be more strategic about when they use energy in their homes in order to maximize the credit they receive for their solar panels.
Another major change in NEM 3.0 is the implementation of a “cap” on the total amount of solar energy that can be compensated under the program. This cap will be determined by the California Public Utilities Commission (CPUC) and will be based on the total amount of solar energy already installed in the state. Once the cap is reached, homeowners will no longer be able to participate in the NEM program and will have to find other ways to monetize their solar energy.
California’s energy system is taking a sizable leap forward with NEM 3.0, and Renew Energy can be your trusty guide! Our team of experts understands the details inside out – so if you want to make sure that every solar panel gets its money’s worth, just let us know! Plus our expert advice will ensure you continue to reap all those sun-soaked benefits from solar despite this new change. Just get in touch for lightening fast support – no more waiting around in the dark ages!