The recent solar billing plan – NEM 3.0, which took effect on April 15th, 2023, was for the customers of three investor-owned utilities (PG&E, SCE, and SDG&E) of California. The bill is now applied to the new solar systems whose connection requests were submitted on or after April 15. At the same time, the existing solar systems will move with their current billing structure. Also, the new systems with valid connection requests which are submitted before April 15 will get included in NEM 2.0.
Key Takeaways of NEW 3.0
As of my last knowledge update in September 2021, I’m not aware of a specific “NEM 3.0” in the context you’re referring to. However, if you’re referring to a potential or upcoming version of a policy, program, or framework related to energy or renewables, I can provide some general points that are often associated with new iterations of such initiatives. Keep in mind that these points are hypothetical and might not directly apply to “NEM 3.0.”
- Enhanced Incentives: New versions of policies like Net Energy Metering (NEM) often come with enhanced incentives for renewable energy adoption, such as increased feed-in tariffs or credits for excess energy fed back into the grid.
- Updated Rate Structures: NEM 3.0 could introduce changes to how energy rates are structured, potentially addressing concerns about fairness and compensation for energy producers.
- Battery Storage Integration: The new version might emphasize the integration of battery storage systems with solar installations, allowing homeowners and businesses to store excess energy for use during peak demand or at night.
- Smart Grid Integration: NEM 3.0 might encourage the use of smart grid technology, enabling more efficient energy distribution and better management of energy flows.
- Time-of-Use Flexibility: The updated policy could provide more flexibility in time-of-use pricing, allowing energy producers to optimize their consumption and export based on varying electricity rates throughout the day.
- Incentives for Energy Communities: NEM 3.0 might introduce incentives for the creation of energy communities or microgrids, promoting local energy sharing and self-sufficiency.
- Expanded Eligibility: The new version could expand eligibility criteria to include a broader range of renewable energy sources, beyond just solar, such as wind or small-scale hydro.
- Regulatory Streamlining: NEM 3.0 might seek to streamline the regulatory and administrative processes for connecting renewable energy systems to the grid, making it easier for consumers to participate.
- Demand-Side Management: The updated policy could encourage demand-side management practices, such as load shifting or demand response, to reduce strain on the grid during peak periods.
- Environmental and Social Goals: NEM 3.0 might align more closely with broader environmental and social goals, such as reducing carbon emissions, creating green jobs, or supporting local communities.
- Consumer Empowerment: The new version might emphasize empowering consumers with more information and control over their energy production and consumption, potentially through advanced metering and monitoring systems.
- Solar systems commissioned before April 15, 2023, will still be subject to their current metering policy.
- The solar systems, under the bill, will earn about 75% less for the excessive electricity.
- Under the NEM 3.0 bill, the solar battery storage system payback period will be equal to the solar-only systems payback period.
- The people of California who are considering solar energy are advised to go solar immediately (by April 14) to enjoy favorable net metering credits.
How is the NEW 3.0 making battery storage essential?
The new solar billing plan – NEM 3.0, reduces the solar electricity value sent in the day. Moreover, it offers higher battery-storage configurations. By storing electricity in the battery and releasing it in the peak hours of necessity during the night, you will get a higher TOU or “electrification rate.” This advantage comes from the support you provide during the hours when the network is more strained since no solar power is generated. The installation of EP Cube will also be beneficial. It will offer reliable and cost-effective solutions to power up your home.
NEM 3.0 has demonstrated a shift of value from the solar-only market. As a new solar house owner, you are encouraged or advised to incorporate solar battery storage into your system. Not only will you enjoy the benefits of the emerging solar battery markets, but you will also avoid stringent policy changes for future solar-only facilities.