NEM 3.0: Essential Updates for Solar Energy Consumers

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Net Energy Metering (NEM) is a system many solar energy consumers are familiar with. Under previous versions, homeowners can enjoy energy savings by receiving credits from power companies comparable to the retail price of energy.

Now that NEM 3.0 has taken effect, new solar customers must abide by new compensation rules that will cut down their energy savings by as much as 75%. If you are an existing solar consumer, you can enjoy your previous NEM 2.0 benefits for 20 years.

Here are some key updates about NEM 3.0 that solar energy consumers should be aware of:


  1. Transition to Time-of-Use (TOU) Rates: NEM 3.0 uses time-of-use rates, charging customers more for energy used during peak hours of the day and less for energy used during non-peak hours. These rate changes are supposed to incentivize customers to be smart about their energy use and preserve power during peak times so that they can enjoy savings from their energy company.
  2. Compensation for Excess Solar Generation: If you are an existing solar customer, your compensation for excess solar energy will not change for 20 years. But if you are new to solar, you can expect to receive a payment comparable to wholesale prices of energy. While this is significantly less than compensation under NEM 2.0, it is still money back on your energy contribution.
  3. Battery Storage Incentives: NEM 3.0 promotes the use of solar panels with battery storage. Since you do not get a significant amount of credit by putting extra energy back into the grid, you may be obliged to keep that extra energy for yourself and store it in a battery storage system in your home. By following this plan, you can be completely self-sufficient with no need for energy from the grid.


Reputable solar service providers like New Day Solar offer consultations with experienced solar professionals. We can provide specific details and insights tailored to your circumstances, helping you understand how NEM 3.0 impacts your solar energy system. Our team at New Day Solar can provide you with details specific to your home and power needs. Call a solar professional at (855) 444-6329 for a consultation.