NEM 3.0: What California Homeowners Need to Know

NEM 3.0: What California Homeowners Need to Know

In California, one of the main motives for homeowners to purchase solar panels is net metering. However, many consumer generators anticipate a decline in the policy once NEM 2.0 expires and is replaced by NEM 3.0.


When Will NEM 3.0 Go Into Effect?

In 1996, California passed its first net metering law, NEM 1.0, with the intention of fostering industry development and promoting residential solar energy use. Later, NEM 2.0 was introduced and continued to give credits to users who send surplus energy back to the grid. However, the California Public Utilities Commission (CPUC) has decided to implement a new policy under NEM 3.0 and it will go into effect in April 2023. Meaning the NEM 2.0 will soon expire.


What will be changed under NEM 3.0?

Lower Energy Credits

Under NEM 2.0, the credit for surplus energy ranges from $.022/kWh to $0.36/kWh. The pricing will be significantly reduced to only $0.047/kWh and $0.058/kWh with NEM 3.0.

Higher monthly charges

Current NEM 2.0 customers pay $20 per month but this fee is going to be increased up to about $50 per month with NEM 3.0.


So What Homeowners Should Do Now?

While NEM 3.0 clearly marks a change in how solar owners are reimbursed for their grid contributions, choosing the proper solar provider can enable you to gain significant energy bill savings.

There are still a few months remaining to apply for the current NEM 2.0 program if you reside in the Golden State. Because NEM 2.0 customers won’t be impacted by NEM 3.0 updates for 20 years from the date of their Permission to Operate status, this can be quite advantageous. So take action now before it’s too late. Contact EcoSolar USA for further details, we can help you get grandfathered into NEM 2.0.


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