NEM 3.0

NEM 3.0 is coming in 2022 with dramatic changes to the framework of NEM 2.0. The first of these changes would be how much your electric utility provider buys energy your system sends back to the grid. Currently solar customers get paid the “retail rate” but under the proposed changes they would get the “actual avoided cost”, being around roughly 70% less under the current proposed new changes. 


Another added change would be added tariffs, commonly called “grid participation charge” or “solar penalties”. As they stand under NEM 3.0, these fees are $8.00 per kW per month. So as an example, if your system is a 6.0 kW system your “grid participation charge” would be an extra $48.00 per month. This adds up to $576.00 per year of extra fees. The only customers that would be exempt from these added fees would be those in the low income bracket.


For current Solar customers, the CPUC plans to decrease your grandfathered period from 20 years to 15 years. Meaning if you have had solar for 5 years, you would now be moved to NEM 3.0 in 10 years instead of the 15 years guaranteed to you before NEM 3.0. 


In an effort to encourage consumers to install energy storage solutions, NEM 3.0 also introduces a 10 year payback for battery systems installed. This is done in an effort to offset those peak time of use times that solar doesn't produce as much, but grid demand increases; such as the 6pm - 9pm hours. 


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