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Net Metering 3.0: What You Need to Know Before April 15th, 2023

Updated: Jul 28, 2023

As solar power system owners, it's time to get informed about Net Metering 3.0. This policy was recently passed and is set to become effective on April 15th, 2023. Don't wait until the last minute to educate yourself on this new regulation. Now is the time to understand what changes will take place, how they'll affect you, and the steps you need to take for compliance by the deadline. Read on for all the information you need to ensure a smooth transition into Net Metering 3.0 and continued success with your solar energy setup.

Understanding Net Metering: The Importance of the 20-Year Agreement

Are you considering purchasing solar panels for your home? If so, you’ve probably heard of net metering and might wonder what it is. In a nutshell, net metering is the contractual agreement between a homeowner and the utility company regarding solar energy being sent out to the grid and power being purchased from the grid. Let's take a closer look at how this works.

What Is Net Metering?

Net metering is an agreement between homeowners and their utility company that allows them to send excess electricity generated from their solar panels back into the electrical grid in exchange for credits on their electric bill. These credits equal the amount of energy sent back into the grid. Homeowners will still receive electric bills from their utility companies, but those bills are reduced by any credits earned through net metering. Essentially, net metering allows homeowners to save money on their electric bills as well as reduce their environmental footprint.

How Does Net Metering Work?

Net metering works by using two meters — one to measure electricity flowing into your home and one to measure electricity flowing out of your home. When you generate more power than you use during the day, this excess power flows out of your home into the electrical grid via your meter and earns you credits on your bill.

In other words, when more power is going out than coming in, these extra units of energy will be credited back to your account so that you’re not paying for something you didn’t use or produce. When you need more power at night than your panels can provide, you can draw from the grid and use up those credits from earlier in the month. This process continues until all of your credits have been used up or until they expire at the end of each billing cycle.

Net metering has been around for a very long time. The original agreement, known as Net Metering 1.0, was updated to Net Metering 2.0, which has existed since 2019. Now, a new version of the agreement is coming into effect soon – Net Metering 3.0. And it dramatically changes the compensation solar homeowners will receive for the energy they send out to the grid.

Net Metering 3.0: What It Means for Solar Homeowners

Scheduled to come into effect on April 15th, 2023, the California Public Utilities Commission has granted permission to the three large utility companies, including SCE (Southern California Edison), to implement Net Metering 3.0. 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.

Net Metering 3.0 drops that rate down to an average of eight cents per kilowatt-hour. This change dramatically affects the compensation solar homeowners will receive for the energy they send out to the grid. As a result, the financial benefits of Net Metering 2.0 will no longer be available, and the payback on solar investments will be extended from four to five years to seven or eight years.

Given these changes, it's important for those considering solar energy to act quickly and take advantage of Net Metering 2.0 before the deadline.

Grandfathered In: How to Take Advantage of Net Metering 2.0

Grandfathered In: How to Take Advantage of Net Metering 2.0

Are you considering switching to solar energy? If so, you must act quickly to take advantage of the grandfathered benefits of Net Metering 2.0 before the April 15th deadline. By filing an application for Net Metering 2.0 by this date, you can ensure you receive all the benefits this program offers.

What is Net Metering 2.0?

Net Metering 2.0 is a program that allows solar energy users to be compensated at a higher rate for the excess energy they generate from their solar panels than what they are charged when they use electricity from their utility provider. This program helps homeowners save money on their utility bills and encourages people to switch to renewable energy sources such as solar power.

How Does Filing an Application Help?

Filing an application prior to April 15th ensures that your system will be grandfathered into the existing version of Net Metering 2.0, allowing you to continue receiving these benefits for years to come, regardless of any changes made to the program in the future. Without filing an application before this date, your system will not be eligible for grandfathering, and you will miss out on these savings and incentives.

You'll need to work with a licensed solar contractor and provide a copy of the contract to Southern California Edison. It's worth noting that the system does not have to be fully installed at the time of application, but you must submit the application before the beginning of April. According to Southern California Edison, any application that is received before the deadline will be grandfathered in at Net Metering 2.0.

So the sooner you act, the better. At Planet Solar, we're here to help you decide whether solar energy is good for you and your family.


Net Metering 3.0 is coming into effect soon, and it's a game-changer for compensation for solar homeowners. The financial benefits of Net Metering 2.0 will no longer be available, so it's important to act now if you're considering solar energy. Call us at Planet Solar to get started and take advantage of the current agreement before it's too late.

Planet Solar

If you have any questions about Net Metering, 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. Or, in the Greater Fresno Area, call us at (559) 228-9245. We service all of Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, and Indio.

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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