Your neighbors got the federal solar tax credit and locked into NEM 2.0. Don't miss your chance to lock in similar energy economics before NEM 3.0 changes the math even more.
If you've been trying to keep up with your solar neighbors, the clock is ticking.
On December 15, 2022, the CPUC (California Public Utilities Commission) unanimously voted to approve NEM 3.0, and it has had a huge impact on solar power production economics. NEM 3.0 cuts payments for excess solar production (the power you don't use and send to the utility company) by roughly 75%.
"This is set to be the largest cut of export rates in U.S. history in a market that represents roughly 50% of the nation's residential solar market." — Ryan Kennedy, PV Magazine
PG&E, SCE, and SDG&E customers in California are most affected. Two of the biggest changes:
- A monthly grid-access fee when switching to solar.
- Electricity export rates dropped from an average of $0.30/kWh to roughly $0.08/kWh.
How does this hit your savings? Under NEM 2.0, a typical homeowner could save $2,000 per year; under NEM 3.0, the average is closer to $250 per year without battery storage.
The good news: Battery storage closes most of that gap. Instead of exporting at low rates, you store excess solar at home and use it at peak hours. That's why most new solar installs in California now ship with batteries by default.
If you have questions about how NEM 3.0 affects your specific home, call Net Metering Systems and we'll walk through the math with you — no pressure, no gimmicks.