wondering when will NEM 3.0 go into effect? CA

Wondering When Will Nem 3.0 Go into Effect? We've Got You Covered!

Are you interested in solar technology and going solar? If so, you may have heard about the upcoming Net Energy Metering (NEM) 3.0 regulations. NEM 3.0 is the latest development in a policy that enables homeowners to install solar panels on their properties and sell excess energy back to the grid. It's a game-changer that promises to accelerate the growth of renewable energy in the United States and reduce our dependence on fossil fuels.

However, with the upcoming changes, it can be challenging to keep track of when NEM 3.0 will finally go into effect. But fear not, we've got you covered! In this blog post, we'll explore everything you need to know about NEM 3.0, including the latest release date predictions, how it will impact homeowners who want to go solar, and the exciting features you can expect to see.

So, whether you're a seasoned solar enthusiast or just getting started on your renewable energy journey, this post will provide all the information you need to know about NEM 3.0 and the future of solar technology.

Brief overview of NEM 1.0 and NEM 2.0

Net Energy Metering (NEM) 1.0 and NEM 2.0 were both regulations that enabled homeowners to install solar panels on their properties and sell excess energy back to the grid. NEM 1.0 was first introduced in the early 2000s and allowed homeowners to offset their energy bills with the excess energy they generated from their solar panels. However, the policy had limitations, including caps on the total amount of energy that could be produced and sold back to the grid.

NEM 2.0 was introduced in 2016 and was a significant improvement over its predecessor. It lifted many of the limitations of NEM 1.0, allowing homeowners to generate more solar energy and sell it back to the grid at fair market prices. It also allowed for more flexibility in system design, including the use of larger and more efficient solar panels.

Overall, NEM 1.0 and NEM 2.0 were crucial policies in promoting the growth of solar technology and renewable energy in the United States. NEM 3.0 is the latest iteration of the policy, and it promises to build on the successes of its predecessors to further accelerate the growth of solar energy and reduce our reliance on fossil fuels.

What are NEM (Net metering) 2.0 rules?

  • Under NEM 1.0, homeowners received credits on their utility bills for any excess energy they generated and sold back to the grid.
  • However, NEM 1.0 had limitations, including caps on the total amount of energy that could be produced and sold back to the grid.
  • The credits received under NEM 1.0 were typically based on the retail rate of energy, which may have been higher than the market rate.
  • NEM 1.0 was a critical policy in promoting the growth of solar technology and renewable energy in the United States, but it was less flexible and less efficient than its successor, NEM 2.0.
  • NEM 1.0 applied to both residential and commercial solar systems, but its limitations made it less attractive for larger solar installations.

What are NEM (Net metering) 2.0 rules?

  • NEM 2.0 allows homeowners to generate their own solar energy and sell any excess energy back to the grid.
  • Homeowners receive credits on their utility bills for any excess energy they generate and sell back to the grid.
  • These credits are based on the market price of energy and can be used to offset future utility bills.
  • Homeowners can also receive a cash payment for any excess energy that is not used or credited back to their account.
  • NEM 2.0 allows for greater system flexibility, including the use of larger solar panel systems and energy storage systems.
  • NEM 2.0 includes rules for interconnection and system design, ensuring that solar energy systems are safe and reliable.
  • The rules of NEM 2.0 apply to both residential and commercial solar systems.
  • NEM 2.0 is a significant improvement over its predecessor, NEM 1.0, and has played a crucial role in promoting the growth of solar technology and renewable energy in the United States.

How will NEM 3.0 affect me?

If you're a new customer interested in solar energy in California, it's important to be aware of the potential impact of NEM 3.0. This new regulation could significantly reduce the amount of savings you receive and extend the payback period for your solar investment. Specifically, the value of energy exports will drop from $0.30 per KWH to around $0.08 per KWH, resulting in a 75% reduction in the value of energy exported back to the grid.

Here are some key takeaways to keep in mind:

  • Under NEM 3.0, the value of electricity you export back to the grid will decrease, which could eat into your overall savings from solar.
  • Additionally, there will be a mandatory fixed charge of $14 per month for SCE, $15 for PG&E, and $16 for SDG&E under NEM 3.0.
  • However, using battery storage to store excess energy could become even more beneficial.
  • It's important to note that NEM 3.0 is not retroactive, so current solar customers will be grandfathered into NEM 1.0 or NEM 2.0 for 20 years after their original PTO date.
  • If you're a new solar customer, you can still receive the benefits of NEM 2.0 if you submit your interconnection application before April 13, 2023.
  • Lastly, it's worth noting that additional "solar taxes" that were previously included in the bill are no longer part of the discussion.

Proposed Changes in Net Metering 3.0?

NEM 3.0 policy would bring in numerous significant changes compared to the current NEM 2.0 policy. One of the proposed changes is the introduction of a new Time of Use (TOU) rate plan that would increase electricity costs during high demand times. This change was suggested by utility companies to encourage solar energy system owners to install a storage battery, as using a battery during peak demand hours would reduce electricity consumption from the grid. However, purchasing a solar battery would add to the already high cost of installing solar panels.

Under NEM 2.0, solar energy system owners could earn between 22 to 36 cents for every kilowatt-hour of electricity they send back to the grid. But under NEM 3.0, this earning potential would reduce to only 4.7 to 5.8 cents per kWh, depending on the utility provider. The change in energy credits is based on California's Avoided Cost Calculator (ACC), which determines the value of solar power for major utility companies in the state, but has been criticized for not considering solar energy's environmental and social benefits.

Furthermore, NEM 3.0 would add a grid participation fee of $8 per kilowatt of solar power capacity to be paid by all solar homeowners, reducing the amount of money solar panel owners can save using renewable energy.

However, low-income solar panel customers who qualify for the California Alternate Rates for Energy (CARE) program would receive a reduced or waived participation fee. The duration of NEM agreements under NEM 3.0 would also be reduced to 15 years from the previous 20-year term.

The Impact of Nem 3.0

California's abundance of sunshine, with an average of 284 sunny days per year, offers economic and environmental advantages for the state. The current net metering policy has enabled millions of middle and working-class Californians to utilize solar energy, resulting in cost savings and improved air quality. However, the proposed changes in NEM 3.0 could make solar energy unaffordable for many people, despite the fact that nearly half of all new solar installations are being carried out in middle and working-class neighborhoods. As per California DG stats:

  • Over 150,000 solar roofs are being used by customers who are a part of the CARE discount program.
  • Due to Net Metering, an additional 30,000 rental units are under development for over 100,000 people living in multi-family affordable housing projects.
  • By 2030, it is projected that over 200,000 families living in affordable multi-family homes will be using solar energy.

However, the proposed NEM 3.0 policy is expected to impede the progress made in installing solar energy in California and also have a significant impact on the job market. As per the IREC's annual Solar Jobs Census, this policy change could cause thousands of small, locally-owned solar businesses to fail and put more than 60,000 jobs at risk.

Now is the time to go solar

Now is the perfect time to take control of your energy bills and join the solar revolution in California! Don't wait until it's too late, act now to be grandfathered into the current rate structure before it expires on April 13, 2023. With electricity prices constantly rising, going solar is the smartest and most cost-effective decision you can make for your home.

At Forme Solar, we are committed to providing you with the best solar energy solutions available on the market. Our team of experts works exclusively with the top panel, inverter, and storage manufacturers to ensure that you get the most efficient, reliable, and long-lasting system possible. With our selective product standards and cutting-edge technology, you can be sure that your solar energy solution will deliver peak performance for years to come.

Are you ready to start saving with NEM 2.0? Let us help you discover your home's solar potential and provide you with a risk-free, competitive quote that includes a preliminary system design. Our team of professionals is ready to guide you through the process every step of the way, from initial consultation to final installation. So why wait? Contact us today to start your solar journey and secure your energy future!