What is NEM 3.0 and How Will it Impact You?

NEM 3.0 is a new version of net energy metering policy that will ultimately reduce the monthly energy bills savings for new solar owners.


Who does it affect?

NEM 3.0 applies to utility customers in the territories of California’s 3 major investor-owned utilities:

Pacific Gas & Electric
Southern California Edison
San Diego & Electric

NEM 3.0 Incentive

Net Metering 3.0 will incentivize battery operated homes because California utilities have too much power going back onto the grid during daytime hours when wildfires are a high risk. This means you will be charged less grid fees having a battery versus someone who does not.

Lower Solar Export Rates

The biggest change between NEM 2.0 and NEM 3.0 is the value of export rates- or the value of excess electricity produced by solar systems. Under NEM 3.0, residential solar export rates will be based on an “Avoided Cost Calculator” instead of retail rates. Please see the chart below to learn more about export rates.

What is NEM 3.0 and How Will it Impact California Solar Owners? | Solar.com

Common Questions

Is NEM 3.0 Retroactive? No. This will only apply if you submit your solar interconnection applications after April 13, 2023.

When was NEM 3.0 Approved? December 15, 2022 and will take effect on April 13, 2023.

What can you do?

NEM 2.0 IOU customers have until April 13, 2023 to be grandfathered into NEM 2.0 by submitting a complete interconnection application for a new solar system.


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