If you're thinking about installing a solar power system in your home, it's important to act now. California's net metering policies have changed, which means the value of the credit you receive for excess energy sent back to the grid is decreasing. With export rates set to decrease in April, now is the time to lock in the more favorable export rates while they are still available.
But first, let's define what net metering is. Net metering is a billing system that allows customers who generate their own electricity, like from solar panels, to receive credit from their utility company for any extra energy they don't use and instead send back to the grid. This extra energy goes to power nearby homes and buildings.
Traditionally, for each unit of energy sent to the grid, customers would receive one unit of credit. This is known as one-for-one net metering (NEM 2.0). However, with the recent approval of NEM 3.0 by the California Public Utilities Commission (CPUC), the value of export credits has been dramatically reduced by roughly 75%, making it significantly lower than regular retail electric rates. Additionally, residential customers are required to be on specific rate plans that include monthly fixed charges. This change means homeowners could lose tens of thousands of dollars in savings over the long term.
But there's still hope for homeowners who want to keep the more favorable terms of NEM 2.0. By submitting a complete interconnection application for a new solar system before NEM 3.0 goes into effect, homeowners can be grandfathered into NEM 2.0 for 20 years. This means that if you get your project into the pipeline by April 13, 2023, you can lock in the more favorable export rates of NEM 2.0 for the next 20 years.
Therefore, if you're considering going solar, it's important to act quickly before the export rates decrease. Not only will you be able to take advantage of the more favorable export rates, but you'll also be able to enjoy the many benefits of solar energy, such as reducing your electricity bill and your carbon footprint.
Act now and lock in the more favorable export rates while they are still available. Take the first step and get a solar assessment.