NEM 3.0, also known as the “New Energy Metering” program, is a new version of the net energy metering (NEM) program in California. The NEM program allows homeowners with solar panels to receive credit on their utility bills for the excess energy they produce. NEM 3.0 is set to replace the current NEM 2.0 program and is expected to have a significant impact on residential solar in California.
Under NEM 3.0, homeowners with solar panels will be required to switch to time-of-use (TOU) rates, which are rates that vary based on the time of day and the season. This means that homeowners will be charged more for energy consumed during peak hours and less for energy consumed during off-peak hours. The TOU rates under NEM 3.0 are expected to be more dynamic, with changes in the rates based on the time of day and the season.
This change is expected to affect residential solar in several ways:
Increased cost of electricity: With the switch to TOU rates, homeowners are expected to pay more for electricity during peak hours. This will increase the cost of energy for homeowners and could reduce the financial benefits of having a solar panel system.
Increased focus on energy efficiency: With TOU rates, homeowners will be incentivized to use energy more efficiently, especially during peak hours. This could result in homeowners making changes to their energy consumption habits, such as using appliances during off-peak hours, to reduce their energy costs.
Changes in the value of excess energy: Under NEM 3.0, homeowners will receive less credit for the excess energy they produce during peak hours. This could reduce the value of excess energy and make it less attractive for homeowners to install solar panels.
Increased demand for energy storage: NEM 3.0 is expected to increase demand for energy storage solutions, such as batteries, as homeowners look for ways to store excess energy and reduce their energy costs.
Overall, NEM 3.0 is expected to have a significant impact on residential solar in California. Homeowners are advised to assess their energy consumption and consider the changes in TOU rates under NEM 3.0 before installing solar panels. They should also consider the costs and benefits of installing an energy storage solution to help reduce their energy costs and maximize the benefits of their solar panel system.
If you want to avoid NEM 3.0 contact us today, we will work hard to make sure your solar energy system is installed before April 15.