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NEM 3.0 in California: How It Impacts You

Renewable energy is here to stay, and solar power is no exception. Despite concerns raised by NEM 3.0, the solar industry in California is still thriving. According to Jill Weiss from Planet Solar, solar is still a great investment for Californians looking to go green and save on their energy bills.

Net Metering 3.0 will not kill the solar industry in California. Solar is still a great investment with NEM 3.0. What it does is it changes the payback and pushes it out to about seven years instead of the current five to six years payback on investment.

In this blog post, we'll discuss how NEM 3.0 impacts your savings and strategies, so read on if you want to learn more about taking control of your home's electricity costs.

Table of Contents

What is NEM 3.0?

Importance of Solar Batteries Under NEM 3.0

FAQs about Nem 3.0 in California


What is NEM 3.0?

Net energy metering (NEM) is a policy that many states have adopted in the U.S. to incentivize solar adoption. California's most recent NEM variant, the CPUC-sanctioned NEM 3.0, will affect solar owners' savings.

Currently, Net Metering 2.0 provides about 25 cents per kilowatt for each kilowatt-hour of excess solar energy that is sent out to the grid. Under this policy, homeowners with rooftop solar could expect payback periods as short as five years or less, depending on their location and system size, due to these generous incentives.

Under NEM 3.0, new solar customers who install after April 15 2023 will experience a significant drop in savings. It drops that rate down to an average of eight cents per kilowatt-hour. This means longer payback periods as well as potentially diminished returns on investment over time.

Given the reduced savings associated with lowered export rates set by utilities such as Southern California Edison and San Diego Gas & Electric Co. under NEM 3.0, battery storage systems paired with rooftop solar arrays are becoming increasingly important to maximize returns on investment over time.

NEM 3.0 is a transformative alteration to the net metering regulations of California, with consequential implications for solar benefits in Fresno and Coachella Valley households. To understand these effects better, let us take a look at how NEM 3.0 affects solar savings for residents of this region.

Key Takeaway: Under NEM 3.0, California homeowners with rooftop solar will experience significantly reduced savings compared to earlier policy versions. Battery storage systems are now a must-have for those looking to maximize their returns on investment and potentially achieve faster payback periods. With these new rules in place, it's time for Coachella Valley and Fresno residents to invest in home batteries.

Importance of Solar Batteries Under NEM 3.0

The CPUC's NEM 3.0 policy affects all solar customers of Southern California Edison, San Diego Gas & Electric, and Pacific Gas & Electric.

If you install solar panels on a home without a battery to store the excess energy, you may not save as much money as you would if you used the energy yourself instead of sending it back to the power company at a lower price. So, it may not be as financially beneficial to install solar panels without a battery.

Under NEM 3.0, batteries help you save money faster than traditional solar systems that are connected only to the power grid. They allow homeowners to capitalize on peak demand charges and store excess energy generated during sunny days for use at night or on cloudy days. This stored energy can then be utilized to offset electricity bills and deliver greater savings in the long run.

Key Takeaway: Under California's new NEM 3.0 policy, battery storage systems are key for homeowners to maximize their savings.

FAQs about Nem 3.0 in California

Q: What is NEM 3.0 in California?

A: NEM 3.0 stands for Net Energy Metering 3.0, which is the newest policy from the California Public Utilities Commission that governs how customers with solar energy systems are credited for the excess energy they generate.

Q: What are the potential benefits of NEM 3.0?

A: NEM 3.0 offers several benefits, including a new time-of-use rate structure, a cap on non-bypassable charges, and the ability to receive credits for excess energy generation over 100% of the customer's usage.

Q: Are there any drawbacks to NEM 3.0?

A: One potential drawback is that customers may receive less compensation for excess energy generation. Also, the new policy may reduce the financial incentive for residential solar installations without battery storage solutions.

Q: How does NEM 3.0 affect my electricity bill?

A: The impact of NEM 3.0 on your electricity bill depends on several factors, including your energy usage, the size of your solar energy system, and the rate structure you choose.

Q: How can I make informed decisions about solar energy under NEM 3.0?

A: To make informed decisions about solar energy under NEM 3.0, it is important to research and understand the new policy, evaluate your energy usage and needs, and compare offers from multiple solar energy providers. Additionally, working with a reputable solar energy contractor can help you navigate the complexities of the policy and make the best decision for your specific situation.


If you have any questions about these benefits, call one of our solar experts. We are ready to help you analyze your home, consumption, and situation. We are happy to provide all the information you will need to make an informed decision on whether or not solar is right for you. We have two locations ready to serve you. If you are in the Coachella Valley area from Palm Springs to Blythe, call us at (760) 341-1413. We service all of Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, and Indio. Our second location is in the Central Valley: in the Greater Fresno Area, call us at (559) 228-9245.

Since 2007, Planet Solar has been a pioneer in the solar panel and home battery installation industry. Our team consists of seasoned solar professionals with 30+ years in the home improvement, energy conservation and technical fields. Our company prides itself on our knowledgeable, friendly, and professional solar consultants, who will help you with all your solar needs. In Planet Solar, you have found a solar installer you can trust.


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