*IMPORTANT*
El Dorado Hills homeowners can be grandfathered into NEM 2.0 by submitting an Interconnection Application for their solar system by April 13, 2023
On December 15, 2022, The California Public Utilities Commission (CPUC) passed NEM 3.0, a new net metering policy that will ultimately reduce the monthly energy bill savings for new solar owners.
NEM 3.0 key takeaways for El Dorado Hills homeowners:
- Current solar owners will remain under their existing net metering policy
- Solar owners under NEM 3.0 will earn around 75% less for the excess electricity they push onto the grid
- Under NEM 3.0, the payback period for solar and battery storage systems will be roughly equal to the payback period of solar only systems
- El Dorado Hills homeowners can be grandfathered into NEM 2.0 by submitting an Interconnection Application for their solar system by April 13, 2023
- It’s important to note that NEM 3.0 is not retroactive, so solar systems installed under NEM 1 or NEM 2 will remain under their current policy.
NEM stands for net energy metering and it’s a program that allows homeowners with solar panels to get credited for the excess energy they produce and send back to the grid. The program is currently on its third iteration, NEM 3.0, and it brings some changes that will affect El Dorado Hills homeowners starting from April 14, 2023.
The main difference from NEM 2.0 is the shift from a one-to-one credit system to a “time-of-use” (TOU) pricing structure. This means that homeowners will be credited for the solar energy they produce at different rates depending on the time of day. For example, energy produced during peak hours (when demand for electricity is highest) will be worth more than energy produced during off-peak hours. The goal is to have more solar energy produced during times of high demand, when it can have the most impact, and less during times of low demand, when it can be less valuable.
Another change is that under NEM 3.0, homeowners will be paid for the energy they export to the grid based on the prevailing TOU rate, rather than the retail rate. This is likely to result in lower compensation for homeowners.
Additionally, NEM 3.0 also includes a new interconnection process and standardized grid access charges for new solar customers, which will make it easier for utilities to manage the integration of solar energy into the grid.
It’s worth noting that customers who already have NEM 2.0 will be grandfathered and will be able to continue to receive the benefits of the previous NEM program for 20 years from their interconnection date. This means that customers with NEM 2.0 will not be affected by the changes until 2042.
In summary, NEM 3.0 aims to better align the incentives of solar homeowners with the broader grid and to help utilities manage the integration of solar energy into the grid starting from April 14, 2023. However, it may result in lower compensation for homeowners who have invested in solar panels. It’s important for El Dorado HIlls homeowners to understand the changes and how they may impact their individual situations.
