NEM 2 Sunset Contractor FAQ's
When does the NEM2 program end?
The NEM2 Program will be closed to new applicants starting April 15th, 2023.
What do I need to submit to qualify a customer for NEM2?
Before 11:59 on April 14th, 2023, you must submit the following:
Completed application, free of major deficiencies (e.g. no blanks, incomplete/inaccurate documents, changes requiring resubmission per Rule 21)
A single-line diagram (a simplified representation of an electrical system)
A signed Contractor State License Board (CSLB) Disclosure and Solar Consumer Protection Guide (for residential, non-self install only)
A signed Agreement
To retain eligibility, final electrical clearance (often referred to as final building or electrical permit) must be submitted before April 15, 2026.
Can new construction projects that have applied for service but are unable to submit a generation application before the NEM2 sunset date still qualify for NEM2?
PG&E will make an exception for new construction projects unable to submit a completed application by the sunset date. If the load application is submitted by the NEM2 sunset date, the project will be eligible for NEM2 provided the site is energized under the same Service Point notification (also known as project or notification number). To retain this eligibility, final electrical clearance must be granted by April 15, 2026.
Can I make changes to my application after submission?
A one time modification request will be allowed for:
Like-for-like equipment replacements
System size reductions not exceeding 20% (Any upgrades or mitigations caused by the change would be paid for by the customer)
System size reductions to avoid upgrades if the re-study determines the modification affects no other distributed energy resource (This modification affects no other distributed energy resource (This modification requires a $300 fee.)
What does like-for-like equipment replacements mean?
For inverters: Certified, same nameplate or smaller, same fault current or smaller
For solar panels: Certified same CEC-AC rating of the system or smaller
For batteries: Same or less kWh and kW rating and same operating profile
For transformers: Same connection type, same or smaller impedance and capacity
How is system size determined?
For solar system: The lesser of inverter nameplate capacity (kW) or maximum solar output (CEC-AC rating)
For batteries: Both the inverter nameplate capacity (kW) and the capacity of the storage device (kWh) are considered in the definition of size
For other generation types: The gross nameplate rating of the generator
Can I add a battery to my application after I submit?
Adding a battery after initial submission is considered a material modification that would result in withdrawal and resubmission of the application. If the resubmission of the application is after the NEM2 sunset date (April 15, 2023), the project will not qualify for NEM2. Instead, you could gain Permission to Operate (PTO) approval without a battery and then submit an interconnection request for the battery later without losing NEM2 eligibility.
How will uncompleted applications left in the portal be treated after the sunset date?
Any applications that are in progress and not submitted in the portal by 11:59 p.m. on April 14, 2023 will be canceled. Contractors will be notified of their need to resubmit the interconnection application in the PG&E interconnection portal under Solar Billing Plan.
Can I add to my existing NEM1 or NEM2 system and not move to the new tariff?
You can increase your system size up to 10% or 1kW, whichever is greater, without moving to the successor tariff. If you increase your system size beyond this threshold, it is unclear if you can remain on NEM1 or NEM2 for the 20 year period (legacy status) from date the solar system PTO approval was provided. The final decision was not clear on how modifications above the threshold would work after the sunset date. These details will be determined in the coming months.
These questions and answers were taken from the official PG&E website.
SOLAR AND BATTERY STORAGE 2023
Solar and Battery Storage…
A winning combination…..
Read Time: 5 minutes:
Highlights:
Solar panels with battery storage can diminish your electricity bills completely.
Claim unto 30% tax credit on investments in hybrid solar-battery systems.
Sell electricity back to the grid during peak rate hours to enhance savings.
Battery storage ensures continuous electricity supply during blackouts or storms.
Battery-solar combination will reduce your carbon emission even further.
Keywords: Battery storage, Solar Battery, PV battery, hybrid solar battery system
Solar energy impact
People are rapidly embracing solar energy systems because they are easy to install, low-cost, and noise free. Solar energy systems produce minimum carbon among renewables, and rooftop systems occupy no space. Their ability to generate free electricity significantly circumvents the bills and has the potential to become a long-lasting and clean source for future generations. According to U.S. Energy Information Administration (EIA), an average household consumes around 886kWh per month. Switching fossil oil-produced electricity to solar electricity will prevent 35kg per month of Carbon emission into the atmosphere (Greenhouse Gas Emissions from Solar Photovoltaics, NREL). These features are more than enough to invest in the solar energy system. However, the sun does not shine brightly during cloudy days, and stormy weather causes solar intermittencies. We cannot harvest photovoltaic (PV) energy during the night. No supply during low sunshine and long night hours makes solar energy unreliable. But the good news is we can resolve these issues with modern storage batteries.
The need for battery storage with a solar energy system
Hybridizing solar panels with battery storage significantly reduce electricity bills, mitigates greenhouse gases, and provides independence from utility power. It is a winning combination for domestic customers who can independently generate, store, sell and control free solar energy dispersing on their roofs. One of the significant advantages of battery storage is energy security. Now the user is assured about the availability of a backup energy source during grid outages. Battery storage enables the user to choose how much and how long solar energy harvesting is needed to run the premises. The control flexibility even allows selling electricity back to the grid during peak hours at higher price slabs. Also, ever-changing utility company policies like peak hours timing, nonuniform unit kWh price, etc., will not affect your business as your battery backup provides your energy needs in peak hours and even without the sun.
Battery add intelligence to the solar energy system
Investing in battery storage adds intelligence to the solar energy system. The user can manage and regulate the incoming solar energy and the outgoing electricity. The battery storage and energy management software (EMS) optimally keep the system at maximum efficiency and also optimizes the cost. Some of the intelligent solar battery hybrid systems include “Powerwall | Tesla”, “sonnenBatterie | sonnen (sonnengroup.com)”, “Enphase Enpower Smart Switch” etc.
Solar investment tax credit
The Federal Government passed an enticing regulation for solar energy users on 16th August 2022. The law is called the Inflation Reduction Act (2022), which states that domestic and business users who invest in solar energy and storage systems between 2022 to 2033 can claim a federal tax credit of up to 30% of their total investment, including the cost of solar components, installation charges, and maintenance costs (The role of solar in the Inflation Reduction Act) . The solar investment tax credit (ITC) will attract many customers to reap the benefits of solar energy systems.
Limitation and operating cost
We have a vast experience in solar battery hybridization and have successfully implemented efficient energy management for many clients. However, before embarking on solar battery storage, let us guide you through the benefits and limitations of battery storage. Some general guidelines are given below.
Cost
Although battery prices have been considerably reduced recently, battery cost holds a leading place in the total solar energy system cost. As the technology progresses, the chance of battery faults is trending low. However, occasionally single or multiple cells in the batteries may break down and need replacement. Therefore, the user has to bear some operating costs too.
Load evaluation
Not all loads can run on batteries, and the load at your premises needs expert evaluation. Similarly, the leverage of the batteries utilization in net metering, peak times, and Time-of-Use must also be evaluated by the experts to maximize your savings.
Conclusion
Electricity consumption is rapidly increasing, and even a minor interruption may cause losses and nuisance to the user. Therefore, when designing the solar energy system, energy security and reliability can be ensured with suitable battery storage. During peak sun hours, the excess energy from solar PV modules is stored in the batteries. The batteries are always available in standby modes ensuring uninterrupted power to the designated load. The battery energy management enables the net metering at an appropriate time, thus achieving maximum savings. Also, batteries are quite a handful for long outages during stormy weather and scheduled utility shut down for maintenance. Finally, the solar-batter investment will also help reduce fossil fuel-produced electricity, thus contracting carbon footprint. Let us help bring you peace of mind while making informed decisions about your solar battery hybrid investment.
FEDERAL SOLAR TAX CREDIT
Claiming the federal tax credit for your solar panels is a simple and straightforward process. Here's how you can make it even easier:
Hire a professional: Hiring a tax professional, such as a CPA or tax attorney, can make the process much easier and ensure that you receive the maximum credit possible. They can guide you through the process and handle all the paperwork for you.
Gather all necessary information: Make sure you have all the necessary documentation, such as proof of your solar panel installation, the cost of the installation, the date of installation, and a copy of your permit. Having all the necessary information at hand will make it easier to file your tax return and claim the credit.
Keep organized records: It's important to keep detailed and organized records of your solar panel installation, including receipts, invoices, and other documentation. Having all the information in one place will make it easier for you to refer to it when you need to.
Take advantage of online resources: There are many online resources that can help you claim the federal tax credit, such as the Database of State Incentives for Renewables & Efficiency (DSIRE). This website provides information on state and federal incentives for renewable energy, making it easier to find the information you need.
By following these steps, you can make the process of claiming the federal tax credit for your solar panels easier and more efficient. So don't wait any longer, start maximizing your solar investment today!