Net Metering 3.0 is Coming!
PG&E’s new net metering plan will double the time it takes to get an average return on your investment from approximately 6 years to over 14 years starting in 2023.
California’s utility watchdog agency has sided with PG&E and the other large investor-owned utilities today in a much-anticipated proposed decision on net energy metering that, if approved next month, will make rooftop solar and customer-owned batteries more expensive and therefore out of reach of working- and middle-class consumers.
Net Metering Defined
Net metering (NEM) allows solar users to get credit from their utility for the extra energy they send back to the grid. The utility gives a credit to the solar user for that extra energy.
The amount of the credit depends on when a solar user got their system. Existing solar users are typically on either “NEM-1” or “NEM-2.”
Proposed NEM 3 Changes
1. Charge a monthly fee just to connect solar to PG&E
- $8 per kW of installed solar capacity. This is $48 per month for a customer with a typical solar system size of 6 kW.
2. Impose credit reductions for energy you contribute to the grid
- NEM 2 = $0.03/kwh below the retail rate
- NEM 3 = Approximately $0.05/kWh
NEM 3 Implications
- Essentially, the system must be fully designed to apply for interconnection. There are a number of steps that determine the fully designed system, and sufficient time is required for this.
- Current 20-year eligibility period for NEM-1 and NEM-2 is reduced to 15 years for non-low-income residential customers.
- All systems installed before the final deadline will be grandfathered into previous plan (NEM2) avoiding the fees and credit reductions
- Installations or modifications of an existing system after the final deadline will automatically force you into NEM3
Call to Action
Don’t Wait – Install Solar and Battery Storage Now!
To avoid NEM 3, an Interconnection application must be submitted for your project prior to the December 2022 deadline.
The Interconnection Application is a written notice to PG&E of plans to construct, install and operate your system. After the utility receives the required documentation, the application is reviewed for approval. Some of the key items that must be completed and included in the application are:
- Array Location – Site map and solar panel location
- System Size – It is important that changes to the application do an increase in system size prior to construction
- Point of Connection – Determination of where the system is connected must be determined and not changed prior to start of construction
- One Line Diagram – This is the complete electrical design of the system
Essentially, the system must be fully designed to apply for interconnection. There are a number of steps that determine the fully designed system, and sufficient time is required for this.
Solar and Storage contractors will be extremely busy as homeowners rush to beat the deadline. We recommend you request a quote today so you can make an informed solar and storage purchase decision before it is too late.