Time and Requirements for NEM 2
- Cut-over to NEM 3.0 after April 13, 2023: for NEM 2.0 complete interconnection applications must be submitted by 5pm
- Complete Application:
- Single line diagram
- CA, Contractor License Board Solar Energy System Disclosure Document
- Signed California Solar Consumer Protection Guide
CALSSA: source for Q&As, rate charts, maps and updates for members. See CALSSA.org for membership.
NEM 3: Net Billing for Exports
- Value of net export credits tied to the Avoided Cost Calculator
- 7.5 cents/kWh average—no longer tied to retail
- Rates vary by day and hour
- For first 5 years:
- export credit “adder” for PG&E and SCE customers
- adder reduced by 20% for new vintages of customers each year through 2027
- export rates locked in for 9 years
- export credit “adder” for PG&E and SCE customers
- After first 5 years:
- CPUC determines the ACC-based export values each year
- No lock-in period
Netting Period Change is also Significant
- NEM 3.0 adopts “instantaneous netting”
- Netting period measures energy being imported or exported
- Longer netting periods => more electricity use from the grid is offset by solar production
- Instantaneous netting treats more electricity as exports at lower ACC-based value
Increased Opportunities for Batteries
- Customers can store solar power in batteries during lower cost times (mid-day) and use the power at more valuable peak Time of Use periods
- Alleviate instantaneous netting
- Optimize Time of Use rates and impacts
- Use power from batteries for self-consumption during peak periods to avoid high retail rates and share any excess power at slightly higher avoided cost-based rates
- Additional incentives for DERs are being developed by the CPUC and the California Energy Commission to compensate battery owners to share their power when most needed by the electric grid
Treatment of NEM 1 and NEM 2 Customers
- NEM 1.0 and NEM 2.0 benefits are grandfathered for existing customers, protecting customer investments from any revisions in NEM 3.0 for the 20 years
- Customers can add a battery at any time after April 13, 2023 without impacting the NEM status of a solar system
- But to be eligible, customers must have a valid interconnection request on file with the local utility by 5pm, April 13
“This information is for informational purposes only and is not provided, and should not be relied on, as legal or compliance advice. You should consult your own legal and compliance advisors for information”
