California’s Net Energy Metering (NEM) policies have evolved—and with them, the economics of going solar. If you’re considering solar now or planning upgrades, understanding the shift from NEM 2.0 to NEM 3.0 is essential to maximizing your investment.
What Is Net Energy Metering?
Net Energy Metering allows solar customers to earn credits for excess electricity sent back to the grid. Under NEM 2.0, these credits were based on full retail rates, making solar a highly attractive investment.
What’s Different Under NEM 3.0?
Effective April 15, 2023, NEM 3.0 introduces significant changes:
- Reduced Export Rates
Compensation for excess solar energy is now based on the utility’s avoided cost, approximately 75% lower than NEM 2.0 rates .
- Longer Payback Periods
The average return on investment for solar systems has increased from 4.6 years under NEM 2.0 to 6.5 years under NEM 3.0 .
- Time-of-Use (TOU) Rates
NEM 3.0 customers are subject to TOU rates, which charge more during peak demand hours, typically 4–9 p.m. .
how we help you adapt
At IndaSpec, we design solar solutions that align with NEM 3.0 realities:
- Battery Integration
Pairing solar with battery storage allows you to store excess energy for use during peak hours, maximizing savings.
- Smart Panel Installation
Advanced panels help manage energy use efficiently, adapting to TOU rates.
- Customized System Design
We tailor your solar system to your specific energy needs and goals, ensuring optimal performance under NEM 3.0.
planning ahead
If you installed solar under NEM 2.0, you’re grandfathered into that program for 20 years from your Permission to Operate (PTO) date . Considering system expansions or battery additions? We can help you navigate these changes while preserving your NEM 2.0 benefits.
Ready to Optimize Your Solar Investment?
Schedule a consultation with IndaSpec to explore how we can tailor your solar strategy for maximum efficiency and savings under NEM 3.0.