YOU WANT NEM 2.0 FOR YOUR SAN DIEGO SOLAR SYSTEM 

If you’re reading this article in 2022 or the early months of 2023, you may still have time to grab the better rates of NEM 2.0. Under NEM 2.0 your system’s payback period could be as short as five years. After that payback period, your system is essentially creating free electricity. That is energy that would not exist without your solar system. That is energy you would have to purchase without your solar system. 

After NEM 3.0 is in place, the exact same system will likely have a payback period of over ten years. This is because the price of electricity during the day will plummet. Your system, if running under NEM 3.0, would get a lower purchase price for the excess energy it produced during the day. 

NEM 3.0 WILL IMPACT SAN DIEGO SOLAR SYSTEMS MORE THAN OTHERS

Of the three major utilities in California, SDG&E, SCE, and PG&E, the new rates will hit San Diego solar projects immediately. The other two major utilities, Southern California Edison and Pacific Gas & Electric, will have a five year ‘glide path’ as NEM 3.0 systems ease onto the lower rates. The systems joined to SDG&E will instantly operate at the ‘full’ NEM 3.0 rates.  

This is a small consideration relative to the large drop in electricity rates during the daylight hours. All utility customers who lose the option of NEM 2.0 and are forced on NEM 3.0 will have a much longer payback period for their solar system. 

ADD A HOME BATTERY LATER?

To be clear, this blog article is based on the information released in the CPUC’s Proposed Decision in November of 2022. It has not been finalized. However, according to that language, a battery can be added to a NEM 2.0 system without losing NEM 2.0 status. This is great news for new solar systems that want to lower the cost of the system by adding a home battery later. 

WHAT ABOUT EACH CCA IN SAN DIEGO? 

Community Choice Aggregation (CCA) energy provider options are growing in availability. If you have one in your area it might be an option to help with your solar system’s electricity sell-back rate. From the November 2022 Proposed Decision, it could not be determined how the new tariff changes will impact homes that purchase electricity through a CCA. Homeowners on or considering a CCA should contact the CCA directly for their policies and rates related to Net Energy Metering. 

SELL NEM 2.0 WITH HOUSE? 

It appears, prior to the CPUC vote, that homes on NEM and NEM 2.0 cannot transfer the NEM status of the system to the new owner. The homeowners cannot take NEM or NEM 2.0 forward to their new house. That’s a set back that of course impacts families who are considering selling or buying a home in the near future. 

WHEN WILL IT HAPPEN?

If the CPUC goes forward with their vote on December 15, 2022 and passes the current Net Energy Metering Proposed Decision, the deadline would become mid April 2023 for homeowners and business owners to get their systems designed and submitted for NEM application. 

The silver lining here is that – as the rules appear now, prior to the December 2022 vote – system installation does not need to be completed by the deadline. However, the system design must be completed and submitted. 

The pressure is on to select a top solar company. At HES Solar, we’ve been giving power back to the people of Southern California since 2001. We would love to speak with you and try to earn your business. We will build you the best system and back it with excellent customer service. Regardless of your decision, we urge you to get the facts on NEM 2.0 and 3.0 while you still have the option of installing solar under NEM 2.0.