Tag Archives: net metering

What do California solar installers think about NEM 3? We asked them!

Since the California Public Utilities Commission (CPUC) approved the Net Billing Tariff, also known as Net Metering 3 (NEM 3), in mid-December, the industry has primarily focused on how the new policy will affect solar shoppers in California (and for good reason): it reduces solar savings by more than 60% over 20 years. But plainly absent from existing articles and thought pieces about the consequences of the NEM 3 decision is the perspective of the people whose livelihoods will be impacted day to day: solar installers in California.

With that in mind, EnergySage surveyed three dozen solar installers in California to gauge their sentiments around NEM 3, how the policy has already affected the solar industry in California, their forecasts for how the industry will change moving forward, and how they plan to adapt to the new solar climate in California after the mid-April transition to NEM 3.

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Top myths about solar

At EnergySage, we hear a lot of solar myths. Here are some of the top ones most in need of busting.

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How to access your previous electric bills in California

Many Californians are rushing to install solar before long-term savings drop significantly under California’s new solar policy, net metering (NEM) 3. With net metering, your utility company compensates you for the excess electricity your solar panel system generates and sends to the grid; NEM 3 lowers the compensation rate in California by about 75% compared to current NEM 2 rates. So, if you live in California and are thinking about going solar soon, you’ll maximize your solar savings by submitting your interconnection application before April 14, 2023 at 5PM PST (when NEM 3 goes into effect) to lock in 20 years of higher NEM 2 rates.

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NEM 3.0: what does it mean for you?

If you look at the best solar & renewable energy markets in the U.S., they all have one thing in common: a strong net metering program. Net metering – or NEM – allows you to earn credits for any excess solar electricity you send to the grid when your solar panel system generates more than you need.

After years of back and forth before coming to a proposed decision, on December 15, 2022, the California Public Utilities Commission (CPUC) voted unanimously to approve California’s third iteration of net metering, or NEM 3.0. 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 14, 2023, to submit a completed interconnection application and lock in NEM 2.0 rates for 20 years. In this article, we’ll explain what you need to know about NEM 3.0 and the steps you need to take now to guarantee the best solar savings.

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EnergySage is CA homeowners’ best resource to lock in solar savings before April deadline

New California policy changes are coming that will dramatically reduce solar savings for homes and businesses in the state. We’ve previously detailed these changes (called NEM 3) and built a simple guide to help homeowners lock in the current, higher savings rate before the April 14, 2023 deadline.

Given this fast-approaching deadline, going solar now may feel daunting. Fortunately, EnergySage is here to guide you through the process and protect you with a simple shopping experience, vetted installers, and a team of free, unbiased Energy Advisors.

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How to lock in savings in CA under NEM 2

If you’re a California homeowner thinking about going solar, your window to maximize savings is short. Our Energy Advisors strongly recommend you select an installer no later than March 31st and submit your interconnection application (via your installer) by April 14, 2023. After this date, your solar savings will still be meaningful but 60% lower over the next 20 years. This change is due to NEM 3, California’s new net metering policy, approved in December 2022, which will apply to systems with interconnection applications submitted after April 14th at 5pm PST. NOTE: your installation does not have to happen by this deadline, and you can even make some changes to your system design after submitting your application.

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How do solar panels work?

Solar panels harness the sun’s energy to generate usable electricity. At a high level, solar cells absorb incoming sunlight to generate an electrical current through what’s known as the “photovoltaic effect”. This electrical current is captured by plates and wires and turned into a usable energy current that is sent to your home and appliances. In this article, we’ll break down exactly how solar panels produce renewable energy for your home.

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Net metering vs. net billing: what to know about solar production compensation

In a perfect world, your home’s solar system would precisely meet your electricity demands – nothing more and nothing less. In reality, there will be days when your panels produce more electricity than you use (sunny summer days), and days when they won’t produce enough (shorter, cloudier days and nights). When this happens, net metering and net billing allow you to essentially use the grid as storage; excess energy produced by your panels transfers to the grid in exchange for credits. In times when your solar system isn’t able to meet your energy needs and you need to pull electricity from the grid, you can use these credits to compensate.

In this article, we explain the difference between net metering and net billing compensation structures, different types of net metering and net billing, and where these programs are being offered across the country.

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What is virtual net metering?

Virtual net metering, put simply, is net metering for electricity generated by a solar system that is located at a different place than where the energy is consumed. If you’re a community solar customer (or you’re thinking about becoming one), you’ll want to familiarize yourself with virtual net metering. Lucky for you, we’ve got you covered!

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First-time homebuyer? Why solar should be your next big investment

If you just purchased your first home, first of all, congratulations! Buying a home is no small feat and immediately planning your home’s upgrades may feel overwhelming–but we’re here to help! When it comes to solar, we think it’s a great upgrade for first-time homebuyers because solar saves you money in the long run and increases your home value. We’ve laid out some key questions to answer when making the decision to go solar as a first-time homebuyer.

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