The California Public Utilities Commission (CPUC) proposed their new Net Energy Metering program (NEM 3.0) last Thursday. You may have been following the NEM changes in the news over the course of the past year but if not, here is a quick overview:
NEM is the arrangement solar owners have with their utility to send excess solar energy back to the grid. In return, the utility provides credit for the energy. The monetary value of the credit is used to pay for the energy drawn from the grid at nighttime or when additional electricity is needed.
Whereas solar installations on NEM 2 typically pays for themselves in 4-6 years, the newly proposed NEM 3 is not so advantageous. Since this is just the CPUC’s proposal, they are expected to make changes and vote to pass the final NEM 3 in December. At that point, it will be implemented 120 days later, around mid-April.
So what does this mean for you and anyone wanting to install solar?
If you contract with SolarCraft in the next few months, we will submit your NEM application and secure your NEM 2 status—even if your system is installed after NEM3 takes effect. Once on NEM 2, it will be grandfathered for 20 years.
This is real. PG&E and the CPUC have taunted us for a year with the threat of launching NEM 3.0. Now we see it on the horizon.
Next steps: If you want solar, contact us right away to start the process and get a free proposal. If you know of anyone interested in solar, let them know to act quickly (also make sure they mention your name at the start so we can provide your $500 referral fee). Our installation pipeline is already filling quickly so don’t wait. Start the process now.