NEM 3.0

In California, the latest version of Net Energy Metering, NEM 3.0, reduced the compensation for homeowners with solar systems by up to 75%. While NEM 3.0 has received negative reviews, every policy comes with some advantages. NEM 3.0 encourages the use of batteries, encouraging solar users to install solar batteries to store energy for later use.

Keys of NEM 3.0

1. In NEM 3.0, earnings from unused electricity sent to the grid are reduced by 75%.
2. The payback period for solar and battery storage systems might be the same as for solar-only systems.?
3. Solar installation before April 15, 2023, would keep their net metering policy for 20 years from the initial connection date.?
4. The NEM 3.0 offers fewer benefits for homeowners than the previous version.?

Solar Batteries?

Under NEM 3.0, solar batteries get another highlight. Investing in solar batteries is considered more beneficial for homeowners which helps homeowners to store unused solar energy for future use, that means you don’t have to sell it to utility companies at less rate.?

Grandfather clause:?

Some homeowners are still unsure whether their system falls under NEM 2.0 or NEM 3.0. However, there is relief for those who installed solar systems before April 14, 2023, as their systems fall under the previous NEM policy.

Check out the comparison of each NEM version and the pros and cons of NEM 3.0 in Solaroot’s latest newsletter. (Subscribe here)