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Upcoming changes to Net Metering (NEM 3.0) could be devastating for California

Updated: Dec 1, 2021

The proposed changes to California’s Net Metering will affect everyone in the state of California and not just future solar system owners, they will also greatly impact the savings for customers and bottom lines of solar installers.

It is predicted that NEM 3.0 could greatly impact the accessibility of solar in the state and make it harder for Californians to hit their ambitious clean energy goals. Making solar more expensive to acquire for the average homeowner is not aligned with the state’s clean energy goals of 60% renewable energy by 2030, and finally 100% by 2050.

How do the upcoming proposed fees in Net Metering (NEM 3.0) affect future solar customers if they don't switch to solar before NEM 3.0 is approved? NEM 3.0 has the following:

  • Substantially higher monthly fees

  • Additional charges for batteries

  • Changing true-ups from annual to monthly

  • Dropping the credit value of solar kWh purchased by up to 75% (so batteries will be highly encouraged)

If the utilities in California get their way, solar will get much more expensive for homeowners looking to benefit from this clean energy source, which means that solar deals are likely to get harder for solar companies to close next year.


How does this effect current solar customer who are on NEM 1.0 or NEM 2.0?

  • If you are on NEM 1.0 or NEM 2.0 or signed a solar contract recently you're in the clear! When a homeowner installs solar on their roof, they sign an interconnection agreement that "grandfathers" them into a NEM contract for 20 years. This protects you from changes with NEM such as NEM 3.0.

  • If a homeowner is thinking of going solar it is in their best interest to do it NOW while NEM 2.0 is still available so that you can secure the ultimate savings solar has to offer with NEM 2.0. We have the power to save our industry and your business in California! #TakeAction by signing the petition at https://www.savecaliforniasolar.org.

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