Powering the Future: NEM 3.0, Energy Storage, and Resiliency
As your trusted solar provider, we want to keep you informed about the latest developments in the solar industry. In this blog post, we'll discuss the recent transition from California's Net Energy Metering known as NEM 2.0 to the new Net Billing Tariff or NEM 3.0, highlighting the importance of energy storage and the increasing need for energy resiliency.
NEM 2.0 vs. NEM 3.0: What's the Difference?
Net Energy Metering (NEM) is a billing arrangement that allows solar customers to receive credit for excess energy generated by their solar panels. When the sun is shining, solar systems often produce more energy than a home needs, so the excess is sent back to the grid. Under NEM, homeowners receive credit for this excess energy, which can pay for grid electricity that is used when the sun is not out.
The California Public Utilities Commission recently introduced NEM 3.0. Key differences between NEM 2.0 and NEM 3.0 include:
Different compensation rates for excess solar generation. Under NEM 3.0 the compensation rate for excess solar energy sent back to the grid is significantly different, making energy storage an incredibly valuable component of your home energy system.
A more complicated rate schedule for solar credits using a tool called the avoided cost calculator.
A small increase in the monthly connection fee from approximately $10 in NEM 2.0, and now approximately $15 in NEM 3.0.
What is the best system for a typical residence?
Because of the changes in the Net Energy Metering agreement, we recommend coupling solar systems with a storage system. This will give you the following benefits:
Resiliency: Solar and Storage can give you a great deal of independence from your Utility , by providing back up power when there is an outage. Storage can also help avoid paying those outrageous peak rates.
Going solar is a tangible way to reduce your carbon footprint and support California's ambitious clean energy goals. By choosing solar, you contribute to a cleaner, greener future for generations to come.
Pairing solar with battery storage allows you to store excess energy for your own use, for example during peak hours reducing your electricity costs. While PG&E pricing keeps climbing through the roof, your solar comes at a fixed cost and will save you money over time.
Increased home value: Studies have consistently shown that solar installations increase property value, making it a smart investment for homeowners.
At California Solar, we offer expert guidance to help you customize your solar & storage options. Our goals are to help you increase the resiliency of your home, minimize your environmental impact, maximize savings, and say “no thank you” to PG&E.
Here’s to a more sustainable and resilient tomorrow.