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What Does Net Energy Metering Mean for Solar?

If you're planning to set up a solar panel at your home, you probably have several ideas on how utilities handle the electricity you'll generate. Maybe you've encountered the term "net metering," aka "net energy metering" or NEM 3.0, an exceptional concept for residential and commercial areas that generate electricity.

At Transform Energy in Escalon, CA, we believe going solar should be painless and simple for you. We have the new solar energy system (solar tubes) to enable you to generate enough energy and, sometimes, more than you can store or use. You can sell excess electricity to the utility firm to distribute elsewhere along your grid.

Here's everything you need to know about NEM 3.0:

Has NEM 3.0 Been Passed?

NEM 3.0 hasn't been approved. It mainly consists of policies stipulating how utility firms credit you for any utilities you send back to the grid. NEM 3.0 is the latest net metering policy after the previous ones: NEM 1.0 and NEM 2.0.

So, what are the proposed changes under NEM 3.0? Sadly, it proposes to cut the economic value of excess solar by about 50-75%. That means you'll receive less credit and might force you to buy additional energy from utility firms.

What Californian's Should Know About the NEM 3.0 Timeline

NEM 3.0 will likely affect consumers who install small solar, biogas, wind, and fuel cell generation units to serve a portion or all onsite energy needs. NEM 3.0 might take effect anytime if enacted by the legislators. Here are the 2021 events that led to the new policy's proceedings:

January 2021: CPUC completed the study on the impacts of NEM on the consumers and solar grid.

February 2021: CPUC finalized the Guiding Principles of the NEM 3.0 tariff.

March 2021: CPUC welcomed opinions for proposal inputs from interested parties.

April to August 2021: CPUC spearheaded hearing and testimonies for NEM 3.0 proceedings.

November 2021: The CPUC issued the final decision after thorough considerations and discussions.

January 2022: Utility firms were expected to implement NEM 3.0 within six months after the final decision.

May 2022: The proposal received a backlash from California Gov. Gavin Newsom, renewable advocates, and solar companies.

Consumers received the best net metering credits under NEM 2.0. Unfortunately, that might go away with the implementation of NEM 3.0. Thankfully, Transform Energy in Escalon, CA can help you mitigate this issue:

Purchase a Backup Storage System

We provide the best battery backup storage system to help you gain independence from utility firms. Instead of sending excess or unused energy to your utility firm, store it internally and use it later.

Go Solar!

Going solar will lock you in the NEM 2.0 benefits. We can easily and quickly install solar tubes on your home's roof for dependable natural light.

Take Action Now

Though the final implementation and decision of NEM 3.0 are yet determined, there are wise actions you can take to uphold and support the dignity of your solar energy. Advocate for fair NEM policies by:

  • Holding legislators accountable

  • Signing petitions

  • Researching and enlightening your friends about the Solar Right Alliance

Go solar by contacting our energy experts for more information on the best solar tubes and battery backup storage systems. We'll also be pleased to answer any queries about NEM 3.0.