California Residents Are Acting Fast to Install Solar Systems as NEM 3.0 Deadline Approaches
NEM 3.0 is a policy introduced by the state of California to incentivize customers who generate their own clean energy, particularly through solar panels. The latest version of the program is set to come into effect on April 15, 2023, and has caused some confusion among current and potential solar panel owners.
Under NEM 3.0, there will be no fixed charges or fees for NEM customers, meaning that there will be no “solar tax.” Homeowners will also be able to save more by combining solar with energy storage and management solutions. However, there will be a reduction in the amount of energy that homeowners can sell back to the grid, resulting in an average net export rate of approximately 7.5 cents/kWh for any solar electricity that is not consumed in the home and is exported back onto the grid. NEM 3.0 export rates are around 75% lower than the export rates for NEM 2.0. Lower export rates means longer payback periods and less cost savings for solar owners under NEM 3.0.
How NEM 3.0 Will Affect Existing Customers
Existing NEM 1.0 and NEM 2.0 customers will not be affected by NEM 3.0 and can add up to 10% more solar panels or battery storage to their systems without any changes. Those who adopt solar energy after NEM 3.0 is implemented can still reduce their electricity costs, but the savings may be lower than before. The new policy incentivizes the use of energy storage solutions, making it more economical to add batteries to a solar system.
It is recommended to work with a contractor who specializes in combining solar and storage systems to ensure a successful installation under NEM 3.0. SunMade Energy is a reputable company that can design an efficient system for your home.
Overall, NEM 3.0 introduces some changes to the previous net metering plans, but existing customers will not be affected. The best decision to make is to go get a solar system before April 15, 2023.
Don’t Wait Until It’s Too Late
Take advantage of the current NEM 2.0 rules by going solar now. Contact SunMade Energy to get started today!