What is NEM2 and NEM3?
NEM2 and NEM3 refer to different versions of net metering policies in California. Net metering is a billing mechanism that credits solar panel owners for the electricity they add to the grid. NEM2 is the second version of net metering, while NEM3 is the third version.
NEM2 was implemented in 2017 and expanded upon the original net metering policy, allowing for more flexibility in how solar customers are compensated for the excess electricity they generate. NEM3, on the other hand, was proposed in 2019 as a way to further modernize the state's net metering policies. It is currently being considered by the California Public Utilities Commission.
California residents should be aware of the differences between NEM2 and NEM3, as they may affect the economics of solar panel ownership and the potential savings that can be realized by going solar. It's worth noting that these policies are specific to California and may not be relevant for residents of other states.
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NEM2 vs NEM3 Savings
The savings difference between NEM2 and NEM3 for California residents would depend on a number of factors, including the size of their solar panel system, their electricity usage, and the specific rates and policies of their utility company.
Under NEM2, solar panel owners are credited for the excess electricity they generate at the same rate that they pay for electricity from the grid. This means that they can save money by offsetting their electricity usage with the excess electricity they generate.
NEM3, on the other hand, proposes a number of changes to the net metering policy that could potentially affect the savings that solar panel owners can realize. For example, under NEM3, the compensation rate for excess electricity may be reduced, potentially reducing the savings that solar panel owners can realize. Additionally, NEM3 proposes changes to the way that solar panel owners are compensated for the excess electricity they generate, which could also affect the savings they can realize.
Overall, the savings difference between NEM2 and NEM3 for California residents would depend on their specific circumstances and the policies of their utility company. It's worth noting that these policies are specific to California and may not be relevant for residents of other states.
- Early adopters are being rewarded with 20 years of NEM2 status. This GUARANTEES you with 20 years of retail rate export values!
- The Public Utility Commission set a guaranteed profit for utilities.
A NEM2 reservation will require the utility company to pay you an additional $65,000 over the next 20 years.
(Based on a 9,000 KWh export annually VS NEM3)