My shopping cart
Your cart is currently empty.Continue Shopping
Net metering, also known as net energy metering, or NEM is a solar incentive program that allows customers to store power in the electric grid. For example, if a homeowner’s rooftop solar system generates more electricity than they need, they can sell the excess power to their utility provider and obtain credits on their monthly bills.
NEM 3.0 was proposed by the California Public Utilities Commission (CPUC) on the 13th of December 2021. It is the intended replacement to previous versions of NEM 1.0 and NEM 2.0. and contains new policies which state how utility companies may credit solar energy consumers for any utilities sent back to the grid. More specifically, the following modifications will take effect as a result of the proposal:
In addition, NEM 3.0 recommends a solar penalty cost of $57 per month for a typical home solar system. Despite a $15 per month credit that seeks to offset the cost for at least 10 years, California will have the highest solar penalty rates in the country.
NEM 3.0 aims to slash the economic value of going solar by 50-75%, posing a significant financial threat to consumers as a result, once implemented. For the moment, the decision for NEM 3.0 has been postponed indefinitely.
The Save California Coalition has criticized the CPUC's decision, stating that it was swayed by the profit-driven NEM 3.0 proposal at the expense of energy users and California's clean energy future. The Solar Rights Alliance feels that large utilities are impeding future progress. According to their statement, they're attempting to persuade the CPUC to impose a monthly solar penalty tax on ratepayers and substantially limit the credit solar customers earn for selling excess energy back to the grid.
Consumers currently receive the best net metering financial benefits under NEM 2.0. However, with the adoption of NEM 3.0, this will most likely disappear. Expert sources anticipate that the CPUC will likely grandfather older systems and honor original agreements. This suggests that switching to solar today will almost certainly lock in NEM 2.0 gains over the next two decades. You can install your very own solar system with a custom DIY Kit from DIY Solar Power. Build your system today to receive a fast quote.