Solar Industry Changes for NEM 3.0 in April 2023
Under NEM 3.0, homeowners with solar panels may not receive as much credit back for excess energy they generate and send back to the grid compared to previous NEM programs. This is because NEM 3.0 introduces a new time-of-use (TOU) rate structure and a grid access fee.
Under the new tariff, NEM 3.0 will significantly reduce net metering compensation rates for new California solar customers (by about 75 percent) – however, you still have through April 1, 2023, to submit a completed interconnection application and lock in NEM 2.0 rates for 20 years.
The TOU rate structure means that the price of electricity will vary depending on the time of day, with higher rates during peak hours and lower rates during off-peak hours. This means that homeowners with solar panels will receive less credit for the excess energy they generate during off-peak hours when electricity rates are lower. In contrast, they will receive more credit for the excess energy they generate during peak hours when electricity rates are higher.
Another change with NEM 3.0 is the introduction of a grid access fee, which will be charged to solar panel owners for the use of the grid. This fee is designed to help cover the cost of maintaining the grid and ensure that solar panel owners are paying their fair share for the use of the grid.
In addition to these changes, NEM 3.0 will also include new requirements for the installation of solar panels. For example, solar panel owners may be required to install advanced inverters, which will help to improve the efficiency and stability of the grid.
Overall, Solar NEM 3.0 is an important step forward for the solar industry, providing a fair and equitable way for homeowners and businesses to benefit from the excess energy they generate. While there will be some changes to the billing structure and requirements for solar panel installation, the program will help to create a more sustainable and renewable energy future for all.