Transitioning to NEM 3.0: Frequently Asked Questions for Homeowners
California solar energy customers may or may not be familiar with the term NEM 3.0. Let’s break it down for you. NEM stands for Net Energy Metering, a billing arrangement that allows homeowners with solar panels to receive credits for the excess electricity they generate and feed back into the grid. NEM 3.0 is the latest version of this policy, which reduces some of the credits.
What Is NEM 3.0?
NEM 3.0 is an updated policy for compensating solar customers for the surplus energy they generate while reducing the credit that energy companies have to pay out. Under NEM 2.0, energy companies reimbursed solar customers for their surplus using retail prices for energy units.
The new NEM 3.0 allows electric companies to pay solar customers prices that are more comparable to wholesale prices per energy unit. The goal of NEM 3.0 is to strike a balance between supporting the growth of renewable energy and ensuring fair compensation for all parties involved.
How Does NEM 3.0 Affect Existing Solar Customers?
Existing solar customers already enrolled in NEM 2.0 will be “grandfathered” into the program for a certain period, typically for the remainder of their current 20-year NEM 2.0 contract. This means they can continue to enjoy the benefits and terms of NEM 2.0 until their contract expires.
Can You Add More Solar Panels and Still Qualify for NEM 2.0?
Under NEM 3.0, the rules regarding adding additional solar panels to your existing system while remaining under the NEM 2.0 program may vary. Many utilities may allow you to expand your system by up to 10% and maintain your NEM 2.0 eligibility. Speak with a solar professional to find out which changes you can make.
Is Solar Energy Worth It Under NEM 3.0?
Solar panels will bring significant savings, even under NEM 3.0 guidelines. The cost of solar panels has continued to decrease over the years, making them more affordable than ever. In addition, under NEM 3.0, there is an emphasis on integrating solar panels with battery storage systems. This allows homeowners to store excess energy generated during sunny periods and utilize it during times when solar production is low, reducing the need to use electricity from the grid.
Contact New Day Solar with More Questions
If you have more questions or would like further clarification on the transition to NEM 3.0, seek guidance from solar energy experts. At New Day Solar, we offer free consultations to homeowners interested in solar energy. You can reach New Day Solar for a free consultation at (855) 444-6329.
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