California's
NEM 3.0

What You Should Know

NEM 3.0. was rolled out in April, 2023 and is the third iteration of the Net Energy Metering program in California. The updated version of this program changes the way solar energy is compensated for by shifting homeowners from a “net-metering” compensation structure to a “net-billing” compensation structure.

Under the old net-metering compensation structure, 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 electric grid. Under the new net-billing system for NEM 3.0., homeowners will be credited for their solar energy at different rates depending on the time of day, day of the week, and month of the year. The value of the solar energy homeowners send back to the grid under NEM 3.0. is significantly less than it was under previous Net Energy Metering iterations.

This change is intended to better align solar energy production with periods of high demand. It’s no secret that California’s electric grid has become increasingly stressed over the years and NEM 3.0. is a way to address grid reliability during peak demand which will help to reduce strain on the grid. 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.

NEM 3.0. modernizes the power grid by reducing the amount of strain on the grid and making solar plus battery backup more economical than solar without backup.

Importance of Solar Batteries:

As a NEM 3.0. customer, there is increased savings potential when pairing your solar panel system with a battery. With the addition of a battery backup system, homeowners can store excess surplus energy onsite to minimize the amount of excess energy being sent back to the electric grid. Homeowners are now able to charge their battery system for later use which helps to maximize the value of your solar power. Another benefit of pairing a backup battery system with your solar panel system is gaining the ability to supply backup power to your home during a power outage or a rolling blackout.

Can you Afford not to go Solar?

Californians are paying some of the highest electricity costs in the nation and the electricity rates continue to rise year over year while wildfires and other weather events continue to put significant strain on the electric grid.

At the beginning of 2023, all three investor-owned utility territories in California (San Diego Gas & Electric, Pacific Gas & Electric, Southern California Edison) raised their electricity rates significantly. San Diego Gas & Electric raised their rates by over 25%.

By producing and storing your own energy, homeowners and business owners can avoid the penalty rate hike structure and lock in energy costs while saving money both short and long term. Higher electricity rates from the three investor-owned utility territories translate to shorter payback periods for your solar system.

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!