Understanding NEM 3

Net Energy Metering (NEM) 3.0: Understanding the Changes for Solar Energy in Fresno and the Central Valley

Net Energy Metering (NEM) 3.0 is the latest iteration of California's policy for homeowners who generate their own energy through solar panels.

What is NEM and why is it important?

NEM is a program established in 1996 by California to incentivize utility customers who generate their own clean energy by offering a financial credit for any surplus energy sent back to their utility. NEM 1.0 helped kickstart the solar energy revolution in California, and after 20 years, the program was updated to NEM 2.0 in 2017. Now, NEM 3.0 has been in effect since April 15, 2023.

How will NEM 3.0 affect existing NEM 1.0 and NEM 2.0 customers?

Existing NEM 1.0 and NEM 2.0 customers can rest assured that their service agreements won't be affected by NEM 3.0. Their benefits will be grandfathered in and they can even add up to 10% more solar panels or battery storage to their systems without any changes.

What are the key changes with NEM 3.0?

NEM 3.0 brings several changes from the previous net metering plans. Some of the key provisions include:

No fixed charges or fees specifically for NEM customers. In other words, NEM 3.0
DOES NOT include a punitive “solar tax.”

A reduction in the amount of energy homeowners can sell back to the grid. The
anticipated result will be an average net export rate of approximately 7.5 cents/kWh for
any solar electricity that you do not consume in your home and is “exported” back onto
the grid.

The ability to save more by pairing solar with energy storage and management

What happens if I go solar after NEM 3.0 is in place?

Going solar after NEM 3.0 remains a great way to lower your electricity costs. NEM 3.0
incentivizes the adoption of energy storage solutions and makes it more cost-effective
to add batteries to your solar system. To ensure a successful installation, work with a
contractor who is knowledgeable in combining solar and storage systems. Energy
Concepts is a leader in solar and storage solutions and can help design an efficient
system for your home. Contact us to learn more.

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