With the updated NEM 3.0 solar billing policy in effect for California’s major utilities, many homeowners are wondering if going solar is still a good decision in the Golden State.
Guess what? Solar power still offers valuable savings with NEM 3.0. While these savings might not match those of systems under NEM 2.0, opting for home solar is still a much more budget-friendly choice compared to purchasing electricity from the utility companies in California.
So, is it Worth Going Solar with NEM 3.0 in California?
There isn’t an iota of doubt that NEM 3.0 brings significant changes to the California solar landscape, still here are two crucial points to consider:
- Substantial Bill Savings with NEM 3.0 Solar Systems
- Solar’s Value Extends Beyond Saving Money
Let’s dig into these aspects a bit more.
Saving on Energy Costs with NEM 3.0 Solar Systems
The impressive part about NEM 3.0 solar billing is that despite reduced export rates, home solar remains more affordable than relying solely on utility electricity. California has the perfect ingredients for solar savings: abundant sunshine and high utility electricity rates. And these factors are likely to stay consistent for quite a long time.
California’s electricity grid faces challenges. The current centralized generation model is inefficient, infrastructure is aging, and expensive electricity from dirty Peaker plants fills supply gaps. Addressing these issues incurs substantial costs, which often lead to frequent rate hikes for utility customers. The chart below illustrates the rate increases by PG&E, SCE, and SDG&E – the utilities adopting NEM 3.0.
Hence, it is quite safe to say a safe bet that electricity prices will keep climbing in California, driving solar savings. Missing out on NEM 2.0’s greater savings shouldn’t discourage you from embracing solar power under NEM 3.0.
Don’t let the pursuit of perfection hinder a good opportunity.
Based on estimates from solar.com, an average 7.6 kW solar system under NEM 3.0 can yield payback periods of 6-10 years for cash purchases and save you over $50,000 over its lifetime.
Sure, these numbers may not dazzle like the 5–7-year payback periods and six-figure savings of NEM 2.0 systems. However, passing up $50,000+ in energy cost savings wouldn’t make sense either.
Solar’s Worth Goes Beyond Bill Savings
While focusing on the numbers is easy, remember that energy cost savings is just one of several perks of home solar.
Whether your solar system saves a little or a lot, you can always also enjoy:
- Reduced reliance on your utility provider
- Enhanced home value (believe us, it is true)
- Lower carbon footprint
- Backup power during outages (with a battery)
- Setting an example for your family, friends, and neighbors
Whether your priority is saving money, combating climate change, or modernizing an outdated electrical grid, home solar in California addresses all these concerns simultaneously. Thus, it’s unquestionably worthwhile – even with NEM 3.0 solar billing.
What are you waiting for Dail: +1 (408)780-2889 or Email @ vijay@statensolar.com today.