ALL ABOUT THE NEM 3.0
Introduction
On December 15th 2022, the ‘California Public Utilities Commission’ officially approved the NEM 3.0. The latest version of the Net Energy Metering Policy aims to minimize solar export rates and urges Californians to use solar and batteries together.
Now, if you are wondering how NEM 3.0 will affect Californians - read along!
Minimized Solar Export Rates
Usually, all solar owners set out the surplus electricity they generate to the state’s electricity grid. For this, they are paid or compensated in some way.
According to the previous version of the NEM, the value of each kWh a user puts onto the grid is equal to the retail value of electricity. This cuts down their electricity bill as they use electricity from the grid when the sun sets down, but they also put electricity onto the grid during the day.
However, under NEM 3.0, the export rates are now based on the ‘Avoided cost Calculator’ instead of the retail value. They will vary by each month and each hour, but generally, they are about 75% lower than before.
Removal of Solar Taxes
The Californian Government previously charged ‘Solar Taxes’ from all the users under NEM 2.0, but these were not carried forward in NEM 3.0.
Using Solar and Batteries Together
Based on the demand, the export rates are expected to be highest when the sun sets. Thus, using solar with batteries will allow users to store energy and then push it onto the grid during these peak hours.
However, Californians can still submit an interconnection application till April 13, 2023. Through this, they can register themselves as solar users under the NEM 2.0 for the next 20 years.
Conclusion
The NEM 3.0 minimises solar export rates, potentially reducing the user’s savings. However, it also promotes the use of solar and batteries together. Nonetheless, it must be highlighted that users registered under NEM 1.0 and NEM 2.0 will not be affected by NEM 3.0.
Energy Independence!
Are you ready to assert our energy independence by going solar and stabilizing your energy costs?
We are all energy consumers but we do have a choice. We can be empowered to choose to do the right thing at the right time by reducing our use, upgrading our home energy efficiency, and by solarizing our homes. If you got sunshine? Why not harness it. We can safely increase our investment with solar, and stabilize our power costs, if we act now. Why not purchase solar panels to control and manage your utility bills for the next twenty to twenty-five years?
How "Solar Friendly" is Your Property?
A lot of people would like to go solar but they don’t know how to gauge how “solar friendly” their roof is. That depends on the angle, slope, and shading. We also need to take into account the weather pattern for that specific area to give the most accurate estimate of solar production. We are now using the Aurora Solar design platform which uses Lidar which is like sonar but for above ground. What it does is detect the trees and any other obstructions that could impose shading onto the roof. With this technology it’s making Solar projects safer as well since contractors don’t need to get on the roof as often. Also, thanks to this technology we can offer free quotes for solar projects as it does not take that much man power to procure one. If you’re interested email us at office@AllyElectricandSolar.com!