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Secure your solar before NEM 3.0!

The deadline to submit a complete interconnection application and still qualify for NEM 2.0 is April 13, 2023


What is NEM 3.0?

Net Energy Metering, also known as NEM, allows you to receive credit for your utility for the excess electricity your solar system generates. On December 15, 2022, the California Public Utility Commission (CPUC), approved changes to the previous policy, NEM 2.0. The new policy approved by the CPUC, reduces the value of solar credits by 75% for farmers and commercial facilities.


What does this mean?

With these new changes, the kWh credit you receive is changing from a retail credit of $0.25 – $0.30 kWh, as seen under NEM 2.0, to a wholesale credit of $0.08 kWh, what solar owners now face under NEM 3.0.


Is NEM 3.0 retroactive?

No. If you have a solar system installed under NEM 2.0, you are grandfathered into the rates for 20 years.


What does the new payback period look like?

Payback periods for NEM 3.0 are estimated to be 10+ years, compared to 2-3 years under NEM 2.0. This is where you can clearly see the 75% reduction of the value of solar credits, lengthening payback periods and decreasing the overall savings for solar owners.


What should I do?

If you are considering solar on your farm, now is the time to get your application! The only good news is that NEM 3.0 is not retroactive and businesses still have time to be grandfathered in under NEM 2.0 rates. To be grandfathered, you must submit an interconnection application by April 13, 2023.


 

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