What is Net Energy Metering?

Net Energy Metering or NEM is when you sell your unused solar power back to the power company. They then sell that power at full price to your neighbors. The power company reimburses you for the power you put back into the system.

So what is Net Energy Metering 2.0?

In 2013, a law was passed directing the California Public Utilities Commission to analyze the current NEM plan (NEM 1.0) to see if any changes should be made. The law was also created to make sure that all customers are being treated fairly as well as to ensure the future growth of solar energy.

I already participate in NEM, would any changes affect me?

If you already are participating in the NEM program, you will be grandfathered into your current contract. Even if you sell your home or business, and the solar ownership changes hands, the grandfathering status will remain with the system.

When will NEM 2.0 begin?

NEM must stay in effect until the total amount of net metered generation is 5% of customers peak power needs. Since there is no definitive date, we can only guess when it will begin. CALSEI has put together a guesstimate of when this will happen in different areas.

What will NEM 2.0 mean for new solar customers?

State law states that utility companies continue connecting solar customers under NEM 1.0 until the total amount of net metered generation is five percent of customers’ peak power needs.

Because the trigger is a percentage, as opposed to a fixed date, we have to estimate when the caps will be reached in each utility territory. Below is a graph created by CALSEIA with their estimations:

Switch to solar sooner rather than later!

If you are thinking about going solar. Now is the time. If the bill is passed, electric companies may start charging a fee for going solar. You will want to make sure you go solar before the bill goes into effect. Call us today to get started! (916) 853-2700

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