The unfortunate decision by the California Public Utilities Commission to pass NEM 3.0 will have a significant and lasting impact on solar billing rates and will lower the monthly savings customers can expect to see from investing in a solar PV system. Read on to learn more about NEM 3.0, how it will impact going solar in the future, and what you can do right away to lessen the impact.

What is NEM 3.0?

NEM 3.0 is a new net energy metering policy approved by the CPUC (California Public Utilities Commission) on December 15, 2022. This new policy will go live in April of 2023. Under NEM 3.0, the benefits of current Time-of-Use (TOU) rates would be diminished and payments for excess solar sent back to the grid would be reduced by 75%. NEM 3.0 is NOT retroactive, however - meaning that customers who have already gone solar by the April 14 launch date will be grandfathered into the previous NEM 1.0 or NEM 2.0 rules (depending when their systems were installed).

How will NEM 3.0 affect me?

For new customers of solar energy in California, NEM 3.0 will reduce the amount of savings you receive and extend the solar payback period significantly. The most significant change is that the value of energy exports (solar power sent back to the grid) will drop from approximately $0.30 per kWh to around $0.08 per kWh. This means a 75% reduction in the value of energy exported back to the grid. If you are currently a homeowner in California and are considering making the switch to solar energy, here are some key things you need to know:

1. NEM 3.0 will reduce the value of electricity you send back to the grid and eat into the total savings you receive from solar.
2. Under NEM 3.0, there will be a required “Mandatory Residential rate” of $14 monthly fixed charge for SCE. $15.00 for PG&E and $16.00 SDG&E
3. Using batteries to store and use excess energy produced by solar during the day will be a beneficial strategy for offsetting the utility costs of energy moving forward.
4. NEM 3.0 is not retroactive. Current solar customers will be grandfathered into NEM 1.0 or NEM 2.0 for 20 years after the original PTO date.
5. New solar customers can still receive the benefits of NEM 2.0 BUT they MUST submit their interconnection application before April 13, 2023.
6. Additional “solar taxes” that were included in early versions of the bill are now off the table.
7. CPUC includes Southern California Edison, San Diego Gas and Electric, and Pacific Gas and Electric - locally owned and operated municipal utilities are not affected - at least for now.

What can I do right now?

There is some good news for homeowners interested in going solar. NEM 3.0 will not take effect until April 14, 2023. This means that you can still receive the benefits of NEM 2.0 if you submit your interconnection paperwork before the deadline. According to CALSSA, your completed interconnection application should include the following elements:

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

Start The Transition Today

The new NEM 3.0 ruling will have a profound effect on homeowners and the solar industry as a whole. However, you can still maximize your savings and receive the more favorable benefits of NEM 2.0 by acting now.

Contact Treeium today to get the ball rolling and finalize your interconnection paperwork before the April 14 deadline.

Our Energy Consultants are standing and ready to answer any questions or speak to any concerns you may have.

Give us a call TODAY at (855) 533 - 8733 or submit your request online and we will get back to you as quickly as possible!