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On April 15th PG&E moved from NEM 2.0 to NEM 3.0. Many people were concerned that this change would diminish the progress of solar in California. SolarCraft is now experiencing the aftermath of the NEM transition. It’s not bad at all. It’s just different. SolarCraft has great solutions for NEM 3 to help you cut your payments to PG&E and utilize clean, renewable energy.

Let us shed light on the advantages of NEM 3.0.

The Shift to Net Billing

In the past, net energy metering allowed solar panel owners to sell excess energy back to the grid, effectively reducing their utility bills. However, PG&E’s NEM 3.0 program introduces the concept of Net Billing, which focuses on using batteries in conjunction with solar panels. This shift not only helps homeowners lower their bills but also assists PG&E in managing energy flow throughout the grid.

Self-Generation and Consumption

The essence of NEM 3.0 can be summarized as generating and utilizing your own electrons. Just as you would store extra vegetables from your garden in the refrigerator for later use, you can now store surplus energy generated by your solar panels in a battery for consumption during peak hours or at night. This enables homeowners to maximize their use of clean, renewable energy and minimize their reliance on the grid.

The Role of Batteries

To fully benefit from NEM 3.0, homeowners are encouraged to invest in batteries along with their solar panel systems. While this upfront cost may seem daunting, the long-term savings on utility bills and the ability to pay off the battery in just a few years make it a worthwhile investment. Additionally, homeowners can save over $100,000 over the lifespan of their system, further solidifying the financial advantages of this approach. Moreover, the presence of a battery provides a backup power source during outages, so during the inevitable PSPS and power outages from fires and storms, you can keep the lights on and save the food in your fridge.

power outage homes

Energy Independence and Environmental Impact

With the ‘electrification of everything’ movement in California, reliance on an unstable grid will only get riskier.  Dependence on the grid is significantly reduced as homeowners generate and store their own electricity. This not only mitigates the impact of rising utility costs but also contributes to a cleaner and more sustainable future for our community. By harnessing the power of the sun and combining it with battery storage, homeowners become active participants in the green energy revolution.

Grid Stabilization and System Flexibility

PG&E’s Net Billing Tariff program plays a vital role in grid stability. By distributing energy generation and consumption more efficiently, it helps prevent overloads during peak hours. The incorporation of batteries provides an additional layer of flexibility, allowing homeowners to adjust their energy usage according to their needs and grid conditions. This dynamic approach contributes to a more reliable and resilient energy infrastructure.

NEM 3.0, or Net Billing Tariff, marks a significant shift in California’s approach to solar energy. Despite initial concerns, this new program has numerous benefits for homeowners. The focus on self-generation, battery storage, and reduced reliance on the grid not only offers significant cost savings but also promotes energy independence. By embracing NEM 3.0, homeowners become active contributors to a greener future while enjoying the peace of mind that comes with backup power during outages. NEM 3.0, or Net Billing Tariff, is a win-win solution for all parties involved and a step forward in achieving a more sustainable energy landscape.

pge checking eletric meter

Yes, it’s best to buy a battery when you buy solar, but you save a lot of money on your utility bill in the process and pay off the battery in just a handful of years. On top of saving $100,000 plus or minus over the life of the system, you become energy independent and can also have a source of backup power when needed.

Bottom line, NEM 3.0, aka Net Billing Tariff, is actually good for everyone.

Please reach out to us with any questions, or to investigate how much you can save with NEM 3.  At the end of the day, it’s still less expensive than paying PG&E!