Solar is booming in California since homeowners have taken advantage of the numerous incentives offered by solar power in the state, such as the increased investment tax credit introduced by the Inflation Reduction Act. The 30% tax credit is a great incentive to go solar. However, those interested in Solar should note that in December 2022, the California Public Utilities Commission passed an updated solar billing policy, which will alter how net energy metering functions. Here’s what you should be aware of regarding the coming changes.
NEM & Its Impact on Solar Power in California
Most people have at most a notion of the concept of net energy meters (NEM) when they conduct a bit of study on solar systems for photovoltaics. However, the specifics of the concept are highly complex, and California’s latest NEM regulations have added more complexity. Fortunately, top solar companies such as Simply Solar are on your side and will ensure you know what you can expect from this technology.
Net Energy Metering Explained & Installed
In its simplest form, net energy metering is an arrangement where a solar panel is connected to the electric grid. Any excess power generated by your system could be transmitted to the grid in exchange for credits on your electricity bill. There are many ways to make net metering work to your advantage. It’s crucial to consider these factors in the design of your system. A reputable solar firm will inquire about the square footage of your home, energy efficiency and consumption, and your net-meter goals.
When your system is created and installed, it will require connecting to the grid, installing your net meter, and ensuring you’re equipped to utilize it to maximize savings from your system.
Navigating the New NEM
The changes coming to NEM apply to customers of PG&E SCE. The NEM changes will affect PG&E, SCE, and SDG&E customers. The primary difference is that the rates for exporting residential solar power will shift from the amount the customers are charged for electricity to the “Avoided Cost Calculator,” which is complicated and changes according to hour and month.
California’s latest NEM agreement might not be as simple as the old system of off-peak and on-peak, which could complicate understanding net meters. With the new rules, the average rate of export you receive for pushing energy back into the grid is around 75% less. But, the rates change down to just the hour. California produces plenty of solar power. However, the issue is not having enough of it in the evening when the panels don’t make enough. This is the point where the storage of solar batteries is a solution.
NEM in Practice
For instance, the export rate during the most demanding hours of September could reach up to $3.32 for a kWh. Suppose you decide to install batteries in addition to solar panels. In that case, you can select when you can send power back to the grid instead of taking advantage of the less expensive rates you get for grid transfer during the day.
Indeed, the new system will be a blessing for those who install batteries in conjunction with solar panels. By installing batteries stored in solar panels, owners can free energy during the day when export prices are at their lowest and transfer it into the grid in the evening hours and when export rates are significantly greater. Also, you’ll have the security of knowing that you’ll be able to power your home should there be a power interruption.
An Advocate for Education
The main point is that even as solar becomes more complex, we’ ‘re here to keep it simple. As a top California solar provider, Simply Solar ensures customers have the most effective net metering setup for their budget and requirements. If you’re unclear about the new NEM changes, have any questions regarding net metering, or require more information on solar generally and more, simply contact us.