Net Energy Metering 3.0

Net Energy Metering 3.0

  • Robert Sayler
  • 03/7/23

Have you heard the big news about solar in California? The state’s Net Metering policy is changing, which means that utility companies will be crediting solar homeowners up to 75% less for the power they share with the electric grid. The California Public Utilities Commission (CPUC) unanimously voted to approve Net Energy Metering 3.0 (NEM), slashing payments for excess solar production sent to the grid by 75%. CPUC voted to cut the average export rate in California from $0.30 per kWh to $0.08 per kWh, making the cuts effective on April 15, 2023. Customers who have new systems installed and approved for grid interconnection before the effective date in April will be grandfathered in to NEM 2.0 rates.

Currently, average net metering rates range from $0.23 per kWh to $0.35 per kWh, and the new proposed decision cuts those rates to an average of $0.05 per kWh to $0.08 per kWh. 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.

You can still qualify for the existing program by signing up to go solar before the new policy takes effect in April. If you sign up before the new rules begin, you’ll be grandfathered into the existing policy - ensuring you get the best possible net metering rates. Even if it takes a while for your system to be installed, you’ll be locked in under the existing NEM 2.0 policy.

But don’t wait to get started. There is a huge rush of homeowners going solar in California right now. So make sure to reach out to a solar professional soon if you want to lock in rates before it’s too late.

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