Big changes are coming to California solar credits.

The new net energy metering rate, NEM 3.0, goes into effect on April 15, 2023, and will slash current solar credits from public utility companies, but there’s still time to be grandfathered into the NEM 2.0.

How? Let’s Dive in for details…


Currently, 1.5 million consumers use net metering, including thousands of public schools, churches, farms, and affordable housing developments, and it is the main driver of California’s world-renowned rooftop solar market.

Big utilities want to change the rules in their favor in order to eliminate a growing competitor, keep consumers stuck in utility monopolies, and protect their profits.

A proposed decision released in December 2021, would have implemented an unprecedented solar tax and drastic net metering credit reductions. The same was shelved earlier after intense backlash and public disapproval from Governor Newsom.

Despite that backlash and the overwhelming popularity of rooftop solar in California, the CPUC’s revised proposed decision still included an immediate and drastic slash to the value of net metering.

Resultantly, Solar NEM 3.0 has been approved on December 15, 2022. It has a significant adverse impact on solar economics. You would not believe but it is making some projects unviable.

The changes to net metering approved by the CPUC are a step backwards when we really need to be moving forward with solar and battery storage. It is a dark day in California when the utility regulators try to block out the sun.

For the solar/storage projects that we are planning in the next 12-18 months, we have to file the Interconnection Application with the utility company by April 15, 2023.

Given the long lead times at the utility company portals, we are keeping our internal deadline as March 15, 2023.

This means that we should file the IAs for ALL our projects under consideration in the next 75 days which we should be able to do. Let’s address any question when we speak next.

NEM 3.0 Key Points: 

  • There is still time to get NEM 2.0 and be grandfathered in for 20 years.
  • People who want to get on the NEM 2.0 program before the Net Billing Tariff takes effect must have a solar installer submit a valid interconnection application within four months of the CPUC issuing its final decision on the program, which was December 15th, making it April 15, 2023.
  • If you still want solar but won’t be able to install it until after the deadline, you will still be able to reap financial benefits from going solar through the Net Billing Tariff.

The new NEM 3.0 rules: 

  • Reduce the amount utilities pay solar owners for the excess energy they generate by at least 75% compared to what they are under NEM 2.0.
  • Require NEM customers to switch to specific Time-of-Use (TOU) plans with very high peak electricity rates.
  • Measure solar power exports in real-time compared to every hour with NEM 2.0.
  • Fund $900 million in incentive payments to help California residents purchase rooftop solar systems, with $630 million reserved for low-income households.
  • Allow the average homeowner to pay back the cost of a solar system in ten years. This includes systems that are paired with battery storage.

Bottom line: There is still time to start a solar project and submit an interconnection application before NEM 3.0 takes effect. Remember the date: April 15, 2023

Dail: +1-408-780-2889 now.