Solar panel installation in California is a top way for residents to sustainably reduce their energy bills and enhance solar tax credit eligibility. Outside of the environmental benefits, the financial benefit of solar is a leading contributor to the popularity of solar panel installation.

If you're a resident of the State of California and had a solar installation at your home, you've likely heard of NEM (Net Energy Metering). NEM is historically how homeowners in California save money after installing solar panels. However, on December 13, 2021, the California Public Utilities Commission (CPUC) filed a proposition called NEM 3.0. NEM 3.0 details ways to reduce compensation for solar energy sent to the grid. The proposal also includes new monthly fees for future solar owners and reduces the number of times people on NEM 1.0 and NEM 2.0 can receive bill credits.

NEM 3.0 Overview:

While NEM 3.0 may not impact homeowners who currently have solar panels, homeowners exploring solar panel installation will feel NEM 3.0's impact with force. Continue reading to learn how this new provision will impact your homeownership and monthly energy bills.

1. Customers of PG&E, SCE, and SDG&E who install solar panels after NEM 3.0 will be impacted.
2. Customers will be required to switch to specific Time of Use billing plans, including high electricity costs during peak times and low costs during off-peak times.
3. NEM 3.0 will reduce the compensation homeowners receive for excess energy sent to the grid and measures energy in real-time.
4. Additional monthly Grid Participation Charge of $8 per kilowatt of solar for solar panel installation in California after NEM 3.0 goes into effect.

These are just a few ways NEM 3.0 will impact future solar installations. You can read more about NEM 3.0 here.

When will NEM 3.0 be implemented?

While the specific timeline for NEM 3.0 is not entirely clear, a decision is expected sometime in 2022. Once NEM 3.0 goes into effect, new solar customer in the State of California will be subject to new fees and lose out on the benefits that NEM 1.0 and NEM 2.0 have provides to homeowners who installed solar panels in the past.

Key Takeaway

Get.Solar.Now.

With NEM 3.0 going into effect, the benefits received in the past will be gone with NEM 3.0. To avoid new fees and reap the benefits of NEM 2.0, we suggest harvesting the sun's power with solar energy now.