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The benefits of solar under NEM 3

For those who are questioning the worth of solar panels in California under the newly implemented NEM 3 system, we have some information for you. Specifically, despite the changes, solar panels can still be a cost-effective option for homeowners under NEM 3.

To understand the context, you have to dive into NEM 3 and how it affects solar panel savings. While there may be slightly lower savings than under the previous NEM 2 system, solar is still significantly cheaper than getting electricity from PG&E. There are many reasons for this, including California’s high electricity prices and abundance of sunshine. Additionally, there are massive issues with the state’s electrical grid, including its inefficiency, outdated infrastructure, and reliance on importing expensive, dirty energy from power plants from other states.

Why Solar Saves You Money In The Midst Of California’s Aging Grid Infrastructure

The electric grid in California was primarily established in the last century. The energy requirements in urban regions were catered to by natural gas-fired electric generation, with remote hydro, nuclear and geothermal energy supplementing them. However, the existing design didn’t consider the phase-out of urban gas-fired electric generation and the substantial increase in energy delivered from wind and solar energy generated at remote locations.

As a result, the electric grid in California largely relies on fossil fuels, but there is a significant shift happening toward renewable resources such as solar and wind energy. State officials support the electrification of the economy, including the transportation sector, by promoting electric vehicles, which is great, but the transition is expected to increase the load on the electric grid in California.

On the other hand, PG&E’s electric rates for residential users are considerably above the national average, estimated to be around 80%. Additionally, the California Public Utilities Commission has anticipated a gradual increase in electricity rates for the three primary power companies that operate in California during the next ten years.

This means that as utility rates rise due to lack of infrastructure, solar panels can help in fueling bill savings even under the NEM 3 system.

The Lifetime Savings Of Solar Under NEM 3

Additionally, homeowners must consider the savings that still remain over the life of a system under NEM 3. Savings can increase depending on if the solar system is paid for with cash or the length of loan taken out, with a potential for tens of thousands in savings for a 7.6-kilowatt solar panel system paid for in cash. And though maybe not as high when leased, there will still be significant savings over the life of a system.

So, while the savings may not be as high as under the NEM 2 system, it’s still crucial to note that going solar is very much worthwhile.

Other Benefits To Going Solar Under NEM 3

Energy savings are not the only benefits of installing solar panels. Other advantages include contributing to a cleaner grid and reducing carbon emissions. Also, installing solar panels can increase one’s home value.

According to a study carried out by the Lawrence Berkeley National Laboratory, installing solar panels in a home can increase its resale value by as much as $5,911 per kilowatt of installed capacity. Furthermore, when used in combination with battery storage, solar energy has proven to be a reliable backup power source during power outages.

Combine Solar Panels With Solar Battery Storage

Solar customers should consider adding solar battery storage to a panel system.

Solar batteries offer a variety of benefits for homeowners with existing solar panels, making them a worthwhile investment. By storing excess energy produced by your solar panels during the day, solar batteries allow you to use it later in the evening or at night when there is less sunlight. This provides households with access to energy storage, which can be used during power outages, and to take advantage of lower-priced electricity rates during off-peak hours.

Additionally, solar batteries are a long-term solution, offering over 10 years of average expected life span and virtually no maintenance required. Investing in Sacramento solar battery technology helps you harness the full potential of renewable energy sources, while also maximizing the efficiency of your existing solar system.

Solar Company Near Me

For more than four decades, Aztec Solar has established itself as the foremost provider of solar power in Sacramento, known for its exceptional products and unparalleled customer service. With a team of knowledgeable staff, we offer customized solutions that cater to the unique needs of our clients, while ensuring the highest efficiency and performance from our systems through our excellent expertise in renewable energy.

Our commitment to energy security means that we provide reliable after-sales support to ensure that your Sacramento solar system functions optimally throughout the year. Investing in an Aztec solar system guarantees peace of mind.

If you want to calculate how much you can save with solar in just 9 seconds, click here.


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