A new net metering policy was passed by the California Public Utilities Commission (CPUC) on December 15, 2022. This new policy, (NEM 3.0), will reduce your monthly energy savings for new solar owners starting April 13, 2023. If you’re currently a solar user, then you’ll stay under NEM 2.0 and continue to reap the savings. Thank goodness for that.
Don’t worry, though. You can still get a solar energy system for your home and be under NEM 2.0, but you have to act now. If you wait until after April 13, 2023, to decide to go solar under NEM 3.0, you’ll earn approximately 75% less for excess energy. If you install a new solar system in your home before April 13, 2023, all you need to do is submit an Interconnection Application, and you’ll be grandfathered into the NEM 2.0 savings.


Under NEM 2.0, the value of homeowners’ excess electricity production produced by their solar system (export rates) was based on retail rates. That’s not the case with NEM 3.0. These rates will be based on a different system. Check out just how much the reimbursement credits go down to in the chart below: (Hint only $0.07/kWh) The differences between NEM 2.0 and NEM 3.0 are in the savings to you, the homeowner: The key point is under NEM 3.0 solar energy loses value. If you don’t want to lose out on savings, you need to get your solar system and application in before the deadline when NEM 3.0 takes effect on April 13, 2023.

If you have questions about NEM 3.0 and the impact to your home, please call the Solar Experts at Royal Solar: 530.899.9999

Expected Nem Changes