Net Energy Metering Changes For Solar Installations [NEM 3.0]

Kennedy Herbst
Sullivan Solar Power logo
Sullivan Solar Power Solar Panel Installation on Residential Roof

Net Energy Metering (NEM) has been a standard in California since 1995. NEM allows solar owners to earn credit for energy sent to the grid during the day. This energy credit can then be used to offset the energy consumers draw from the grid when their solar isn’t producing. At the moment, the Net Energy Metering program is up for review and the changes could drastically affect solar projects throughout California.

NEM 3.0, is currently being considered by the California Public Utilities Commission (CPUC), with contributions from utility companies, the solar industry, and utility ratepayer advocates. This successor program, NEM 3.0, and the CPUC’s decisions could result in ramifications for solar industries, or individuals who want to install solar on their homes.

California Public Utilities Commission building in San Francisco
California Public Utilities Commission building in San Francisco, California. (rarrarorro/Shutterstock)

The Current Program: NEM 2.0

  • Provides kWh credits for excess solar energy which can then be used to offset kWh drawn from the grid at a later time.
  • kWh credits are slightly reduced to ensure solar owners pay only a fraction of the retail energy price that funds low-income assistance and energy efficiency programs.

Program Changes Could Include: NEM 3.0

  • Decreases in the credit paid to solar owners.
  • New fixed monthly fees on solar owners’ electric bills.
  • "Grid access” charges based on system size (i.e. $3-$10 per kW of solar panels installed)

Net Energy Metering changes have their downfalls, but it is important to note that battery storage technology is available to help consumers use the energy their solar has produced. Battery storage benefits utility ratepayers by taking away the worry of getting power from investor owned companies such as SDG&E (San Diego Gas and Electric), or SCE (Southern California Edison).

If you are a part of the solar industry, looking to get solar installed, or a supporter of renewable energy please sign the petition provided below to stop investor owned utility companies from profiting off of the expenses of solar. The petition to save California solar will be available to sign until April 30th, 2021.


Committed to Solar Education.
Dispelling Myths. Promoting Facts. Sifting Through the Noise. Live seminars with nonprofit organizations or learn online at your own pace? The Choice is Yours.
Attend Free Seminar Visit Online Academy