Solar Compensation is Being Cut by 75%
On December 15th, 2022 the California Public Utilities Commission voted yes to one of the largest changes in California’s solar history.
Effective April 15th, 2023, solar systems, who do not have previously approved NEM applications, will be subject to the new Net Energy Meter 3 (NEM 3) tariff. Under this tariff, the export rate for solar generation is greatly reduced from an average of $0.30 per kWh to $0.075 per kWh1.
In addition, the new NEM3 tariff eliminates the annual true-up process, which allows for the reconciliation of energy production versus use throughout the calendar year, in favor of monthly electricity payments.
While there will still be savings going solar in the future, savings will decrease significantly and systems will require on-site storage systems in order to maximize savings benefits. These on-site storage solutions require physical space and additional costs in order to be installed extending the time until consumers see a return on investment.
There is good news. Consumers have until April 14th, 2023 at 5:00pm to have an application submitted to their applicable utility company to reserve their place on the current NEM program (NEM 2.0). If their application is approved by the utility company, they will have three years from the date of approval to have their system installed by their solar contractor and signed off by the local authority having jurisdiction.
In an effort to help as many customers as possible to secure their spot, Pacific Solar is offering a NEM reservation program until March 31st, 2023. Between now and March 31st, 2023, customers who would like to secure their spot under NEM 2.0, who sign the required documentation and pay a $250 deposit towards their contract, will be placed in our queue to process NEM Applications prior to the deadline*.
Find out more about how to secure your spot by calling (559)251-5592.
Ready to move forward with instant pricing? Pacific Solar has a Quick Kit program available for California residents. Get your instant quote HERE.
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1 CPUC’s E3 model Analysis (https://www.cpuc.ca.gov/nemrevisit) as cited in SunPower – Summary of NEM3 Final Decision.pdf
*Terms and conditions subject to Pacific Solar’s NEM 2.0 Addendum.
