Net Metering 3.0 vs 2.0
Net Metering 3.0 vs 2.0 for Solar Customers
Net energy metering (NEM), commonly referred to as net metering, is a metering and billing legal document and agreement designed to compensate solar system owners for any excess solar power generation sent or exported back to the utility grid.
NEM allows utility customers with on-site solar to receive power credits that will help offset the electricity they draw (import) from the grid when their solar production is not enough to meet their power needs (typically when it’s dark outside and solar is not producing).
These power credits are issued by the utilities SDG&E, PG&E, and SoCal Edison under NEM 2.0 net metering agreement, at full retail rate or what they would charge you for power at that specific time of the day.
This export rate or power credit is important because it helps to offset the power used from the utility in the evening hours and zero out your power bill from the utility every 12 months at the true-up period (the date the system was permitted to operate).
The CPUC is proposing to change these terms for those wanting to add solar to their home on December 15th, 2023. It would drastically reduce the power credits which, in turn, would leave the customer with a power bill due every month vs. no power bill under the NEM 2.0 terms.
Those under NEM 1.0 and NEM 2.0 will be able to retain the terms of their contract with the utility.
Therefore, it is absolutely imperative that customers who want to add solar to their home do it NOW so they can be under the NEM 2.0 terms with their prospective utility.