Lock in NEM 2.0 rates and benefits

Installing solar is a future-focused way to boost sustainability and reduce your carbon footprint while taking control of operating costs. In addition, you can monetize your solar PV system by selling excess solar generation to the grid through the NEM 2.0 program in California. Net metering is a valuable incentive that lowers electricity costs for solar customers and maximizes the payback and ROI from investing in solar.

NEM 2.0 is being replaced with NEM 3.0 and is estimated to take effect on June 10, 2022. The California Public Utilities Commission (CPUC)’s proposed ruling drastically changes net metering benefits:

• The CPUC will slash the estimated value of net metering solar credits from an average of $0.15/kWh to $0.05/kWh – a 75% reduction in value.
• In addition to lowering the value of net metering credits, the CPUC has proposed the value of the credits will be reassessed on an annual basis. Net metering customers will only receive a credit rate lock for the first five years of their solar PV system’s operation, creating rate uncertainty.
• CPUC will reduce the term from 20 years for NEM 2.0 to 15 years for all NEM 3.0 customers. Shortening the term length is problematic because it does not align with PPA terms or the typical lifespan of a solar PV system, creating even further rate uncertainty.

These changes will cut the economic value of going solar in California. Payback periods vary by customer, but increases to simple payback of between 2 and 10 years for most commercial solar customers are likely, and ROI will be drastically reduced. If you want to secure the best economic value from going solar, it’s important to consider solar for your organization now so you can enroll into NEM 2.0. Fill out the form to download our checklist to ensure you lock in the more lucrative NEM 2.0 rates and benefits before they expire and the much less favorable NEM 3.0 program is implemented.