California’s Net Energy Metering (NEM) policy aims to promote the use of solar energy by crediting solar panel owners for the excess electricity their systems produce. NEM 3.0, the latest version of the policy, brings changes that homeowners should be aware of:
- Reduced credits for excess solar energy, based on utilities’ avoided cost of generation, which is typically lower than retail electricity prices.
- Introduction of time-of-use (TOU) rates that vary depending on the time of day and season, with higher rates during peak demand and lower rates during off-peak periods.
- Interconnection fees for solar panel owners when connecting their systems to the grid, which vary based on the size of the system and utilities’ interconnection costs. Homeowners in California who want to fall under NEM 2.0 rates and regulations have until April 13, 2023, 5pm PST to submit a completed Interconnection Application package to their utility. It is important for homeowners to understand these changes and how they may impact their solar energy systems.
There’s still time! A completed Interconnection Application package will need to be submitted to your utility prior to 5pm PST April 13, 2023, in order to fall under NEM 2.0 rates and regulations. Keep in mind that it takes some time to prepare an application properly, so you will want to connect with your solar energy provider as early as possible before the deadline. Get your FREE quote to get started!
Overall, NEM 3.0 will bring some changes to the way solar panel owners are credited for their excess energy and how they are charged for electricity. It’s important for homeowners to understand these changes and how they may impact their solar energy systems.