CALIFORNIA'S NEW NET METERING PROGRAM IS ALMOST HERE, AND A LOT IS ABOUT TO CHANGE
On December 15 2022, the California Public Utilities Commission (CPUC) adopted Decision 22-12-056, which establishes the Net Billing tariff (NBT) as a successor to NEM2, the State's current Net Metering program.
It's being called "NEM 3.0", and begins on the 15th of April.
More than just an update, the new net metering program is very different from the old one. Here are some of the most important changes we found:
1. NBT gives a much lower compensation for excess solar power sent to the electric grid, effectively reducing the value of your net metering credits by about 75% compared to NEM2;
2. This will increase the total time it takes to pay back your solar energy system by about 4 years, to 9-10 years compared to NEM2's 5-6 year period;
3. Under the new program, the payback period for a solar-plus-battery storage system will actually be faster than for a solar-only system (though it's still longer than it would ever be under NEM2).
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Because these changes, many homeowners are rushing to apply for new solar energy systems by April 14, the last day before NBT begins.
This is because, by doing so, homeowners can lock in the more worthwhile NEM2 rates, so it's understandable why they're rushing.
If you're such a homeowner living in California, regardless of your particular situation, you can still take advantage of these next couple of months to lock in the "old" NEM2 rates:
1. If you recently installed solar under the NEM2 program: you don't need to do anything more, since you'll automatically be grandfathered into NEM2 rates for 20 years, starting on the day your solar system was turned on.
2. If you're looking to go solar soon (or to replace your old solar panel system): you can submit a final interconnection application by April 14, and you'll be locked in to NEM2 rates for the next 20 years.
3. If you want to add more capacity to your system (like an electric vehicle charger or a heat pump): you can do so by April 14, and that extra capacity will be grandfathered into NEM2 rates.
4. If you want to add a battery to your current NEM2 solar system: you don't have to rush, since, even if you add it after NBT begins, you'll keep your NEM2 rates as usual (the same goes for upgrading your electrical panel).
Free Solar Texas' engineering team is comprised of experts in fields like solar energy, battery energy storage, EV charging and home efficiency.
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