Understanding NEM 3.0: How It Impacts Your Summer Solar Investment
Filed under: Solar Installation
Are you ready to go solar but feel unsure about the savings under the new NEM 3.0? Net metering policies play a crucial role in incentivizing homeowners to adopt solar power. In California, the recent transition to NEM 3.0 has raised questions about how this updated policy will impact the value and benefits of investing in solar energy during summer and beyond.
NEM 3.0 Aims to Modernize the Grid
NEM 3.0 is designed to modernize the energy grid and promote the integration of solar power with energy storage systems. The new policy decreases the credits you will receive from energy companies, encouraging the adoption of solar-plus-battery solutions. More details about NEM 3.0 include:
1. Changes in Compensation Rates
One significant change introduced by NEM 3.0 is the calculation of compensation rates for exported solar power. Instead of receiving credits at retail value, solar customers will be credited based on a new rate. This wholesale reimbursement price is approximately 75% less for the solar power they send back to the grid.
2. Limited Impact on Existing Customers
If you are an existing solar customer, your current benefits will remain. The new policy will not affect those who already have solar systems installed under NEM 1.0 and NEM 2.0. These new changes do affect the payback period of your investment. NEM 3.0 sets a target of nine years for customers to break even on the cost of installing solar, which is an increase from the estimated five-to-six-year payback period under NEM 2.0.
Is It Worth It to Go Solar Under NEM 3.0?
NEM 3.0 still offers significant benefits to solar customers. As electricity prices in California rise, you have the chance to take control of your power costs. Instead of relying on the grid, install solar panels plus battery storage to provide your own energy even during nighttime hours. In addition, solar energy gives you the opportunity for long-term savings and environmental contributions.
Go Solar with a Team You Can Trust
If you’re considering going solar this summer and want to understand how NEM 3.0 may impact your investment, the team at New Day Solar is here to help. Contact our solar professionals at (855) 444-6329 for a consultation.
