Net metering, or NEM for short, is a program that incentivizes Californians to use alternative energy options, like solar. Adopted in 2016, NEM 2.0 is a billing system that credits solar owners for the excess energy that they produce. So, if your solar system is generating more energy than what you’re using, that energy gets pumped back into the grid and in turn, you receive credits on your electric bill from the utility.

Not only does NEM 2.0 allow solar owners to receive credits for the excess energy they produce, but the program also introduces time-of-use rates. TOUs make power more expensive during specific peak hours when Californians are expected to be using the most energy. Alternatively, energy is the least expensive during off-peak hours. Solar owners in turn receive higher credits when they produce energy back to the grid during on-peak hours and less when they’re sending energy to the grid during off-peak hours. So, when the sun is shining bright during the day, you’re producing the most and being credited the most!

It’s as simple as that, however, NEM has come a very long way to get to where it is today and it’s faced several revisions throughout its lifetime.

Currently, NEM 2.0 provides the best financial benefits to solar users who produce more energy than they consume. Despite this, California regulators are likely to introduce NEM 3.0, a less attractive solar incentive.

Utility companies like PG&E, SDG&E, and SCE have banded together to introduce NEM 3.0, which aims to add a $65 to $95 monthly solar penalty fee to the energy bills of solar owners. Not only that, NEM 3.0 is designed to dramatically reduce the credit that solar customers will receive for the energy that they produce and deliver to the grid.

By going solar now, you can lock in the benefits and rates of NEM 2.0 for the next 15-20 years. If you’ve been considering going solar then now is the time to invest, because it’s likely the solar incentives available today will not be here next year. Not only can you lock in NEM 2.0, but you can also take advantage of the 26 percent Federal Solar Tax credit, that is available to solar owners who install their system before 2023.

Energy storage is the next step in gaining energy independence from the utility. By storing energy for when you need it most, you can combat peak charge times, and use more energy from your battery than the grid. If and when NEM 3.0 is introduced, you can store your excess energy for when you need it, rather than sending it back to the grid for a smaller credit. By going solar today with energy storage today, you can lock in NEM 2.0 rates and become more independent from the utility!

SolarTech has been powering California for 20 years and our team of professionals are here to help you prepare for the future. We understand the importance of delivering excellent customer service so that we can provide the best possible solar experience for your needs. Our representatives are experts in the field and we’re here to help.

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