Install Solar Power Today Before Net Energy Metering Rules Change
Net Energy Metering is a program that is designed to help you save money with a renewable energy generation system. One of the most popular of these systems is Solar energy. A solar energy system will typically generate more power during the day than your home will use, but you will need to use power from the utility at night. With the Net Energy Metering program, you’re able to generate credits during the day, so you don’t have to pay for power at night. The NEM programs rules are going to be changing on June 30th, so it is important to lock in your spot and have your solar system installed as soon as possible.
How does NEM 1.0 work?
NEM 1.0 is designed to give the consumer a one to one credit for the power that their solar system produces. When power is generated by a solar system, it powers the home first, and then any excess power is sent to the utility. This excess power is monitored by the utility meter and the utility company gives you credits to use at a later time. For example, if a solar system produces 30 kilowatt hours in a day, but the home only uses 20, you will start the next day with a 10 kWh credit. This credit goes from day to day and month to month, until your solar yearly anniversary date. At that point, you’re able to either roll this credit over to the following year or accept a pay out from the utility at a whole sale rate. It is usually best to roll the credit to the next year.
NEM 1.0 Changing to NEM 2.0
June 30th is an important deadline to meet, because NEM 2.0 will not be as lucrative as NEM 1.0. If you have been thinking about investing in a solar power system, then it is a good idea to take action right away so that you can be grandfathered into the NEM 1.0 program. Those that have had a solar electric system installed and signed off by the local permitting jurisdiction will be grandfathered in for 20 years with the NEM 1.0 rules.
Why is it important to take advantage of NEM 1.0? The new NEM 2.0 rules will require a mandatory time of use rate, non-bypass able charges, and interconnection fees depending on the type of system that you have. Instead of receiving a one to one credit like we talked about earlier, consumers will be charged a non-bypass able rate for each kWh they use directly from the utility.
At New Day Solar, we can help you save money and maximize the benefits of your solar power system. Contact us as soon as possible for more information about meeting the deadline so that you can take advantage of NEM 1.0. It is essential that all documentation for Permission to Operate (PTO) is provided to SCE by the end of the day on June 30, 2017. Even if SCE does not grant permission to turn the system on by the end of June, the installation of the system and submission of the paperwork needs to be completed.
For more information about how you can qualify for NEM 1.0, contact us to schedule a free consultation: (855) 444-6329